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Description of the Hair -Cent Sales Tax Pursuant to Chapter 212, Part I, Florida Statutes, the State of Florida is authorized to levy and collect a sales tax on, among other things, the sales price of each item or article of tangible personal property sold at retail in the State of Florida, subject to certain exceptions and dealer allowances as set forth in Chapter 212. Chapter 212 was amended in 1982 and again in 1986, to increase the sales tax from 4% to 5% and then from 5% to 6%. Chapter 218, Florida Statutes, was amended in 1982 to add Part VI thereto entitled "Participation in Half -Cent Sales Tax Proceeds". Pursuant to Chapter 218, Part VI, which became effective October 1, 1982, one-half of the net additional taxes remitted to the State of Florida pursuant to Chapter 212 by a sales tax dealer located within a county is required to be deposited in the Local Government Half -Cent Sales Tax Clearing Trust Fund in the State Treasury (the "frust Fund") and earmarked for distribution to the governing body of that county and of each municipality within the county pursuant to a distribution formula. Such moneys are referred to in Chapter 218, Part VI, as the Local Government Half -Cent Sales Tax. The Half -Cent Sales Tax is distributed from the Trust Fund on a monthly basis to participating units of local government. To be eligible to participate in the Half -Cent Sales Tax the counties and municipalities must comply with certain requirements set forth in Section 218.63, Florida Statutes. The Half -Cent Sales Tax proceeds collected within a county is distributed to the county and municipal governments by the State in accordance with the following formulas: The County's Share unincorporated area population + 2/3 incorporated area population (percentage of = total county population + 2/3 incorporated area population total Half -Cent (Sales Tax Receipts) Municipality Share municipality population (percentage of = total county population + 2/3 incorporated area population total Half -Cent (Sales Tax Receipts) Population is the latest official state estimate of population certified prior to the beginning of the local government fiscal year. The County has complied with all of the requirements set forth in Chapter 218, Part VI, including the filing of a certificate of compliance with the State Department of Revenue, that are necessary in order for the County to receive its portion of funds from the Trust Fund during the fiscal year ending September 30, 1992. The County is obligated to take all lawful action necessary or required to remain an eligible recipient of its portion of the funds in the Trust Fund so long as any of the Series 1992 Bonds remain outstanding. Although Chapter 218, Part VI, does not impose any limitation on the number of years during which the County can receive distributions of the Half -Cent Sales Tax from the Trust Fund, there may be future amendments to Chapter 218, Part VI, in subsequent years imposing additional requirements of eligibility for cities and counties participating in the Half -Cent Sales Tax. To be eligible to participate in the Trust Fund in future years, the County must comply with the financial reporting requirements of Section 218.23(1), Florida Statutes. Otherwise, the County loses its Trust Fund Distribution for twelve months following a "determination of non-compliance" by the State Department of Revenue. The following table shows the County's seven year history of the Half -Cent Sales Tax revenues in Indian River County: