How to Handle the “Found” Money From the State
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Figuring out what to do with extra money is a nice problem to have. Many local governments have asked how to handle distributions of the 2011 and 2012 income tax money that the State found because it had not been distributed to local governments.
The State Budget Agency and the State Board of Accounts provided guidance advising local governments to deposit the undistributed 2011 and 2012 income taxes into the funds that were supposed to receive them in the first place. So, for example, CAGIT distributions should be deposited into the General Fund if that is where the City typically receipts the CAGIT. EDIT distributions should be receipted into the EDIT Fund.
Please note that transfers to the rainy day fund are permitted at any time throughout the year; however, the annual transfer is limited to 10% of the total DLGF-approved appropriations. At any time, by ordinance or resolution, a county, city or town may permanently transfer money that has been deposited in the rainy day fund to its general fund or any other appropriated funds.
If you have questions about distributions of 2011 and 2012 income tax receipts, please contact us at footnotes@umbaugh.com.
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Information in this article was believed current as of the date of publication. As you know, changes occur frequently. The information presented is of a general educational nature. Before applying to your specific circumstances, please contact us at footnotes@umbaugh.com.