2014 North Dakota Century Code Title 54 State Government Chapter 54-27 Fiscal Administration
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CHAPTER 54-27
FISCAL ADMINISTRATION
54-27-01. Fiscal year - Reports - When made.
The fiscal year for the state of North Dakota commences on the first day of July and ends
on the thirtieth day of June of the following year. All reports required annually or biennially of any
state officer or from any private corporation or limited liability company, unless otherwise
provided, must be made to and must include the thirtieth day of June preceding. All accounts of
such officers must be closed and balanced to that date.
54-27-02. County treasurers must remit state funds collected or in their hands.
All funds collected by or in the hands of the treasurer of any county in this state must be
remitted promptly by the county treasurer in the manner provided by law, without expense to the
state, and at the risk of the county treasurer. The county treasurer must be allowed actual
expenses by the board of county commissioners.
54-27-03. County auditors to furnish office of management and budget with abstract
of tax list.
Repealed by S.L. 1991, ch. 658, § 2.
54-27-04. County treasurers to transmit state taxes.
The county treasurer, as an agent of the state, shall, on or before the fifteenth of each
month, transmit in full to the state treasurer all state taxes collected in the previous month
together with a report thereon. The original report must be forwarded with the remittance to the
state treasurer.
The state treasurer shall furnish a receipt to the county treasurer for the funds received,
send a duplicate of the receipt to the county auditor, and cover the amounts to the state taxes
distribution fund.
The director of the office of management and budget, on or before the last day of same
month shall, by drawing appropriate warrants on the state taxes distribution fund, transfer the
funds to the general fund and other funds in accordance with the purposes for which the taxes
were levied and collected.
54-27-05. Office of management and budget to deliver to state treasurer order on
county treasurer for taxes collected.
Repealed by S.L. 1967, ch. 390, § 2.
54-27-06. State treasurer to notify county treasurer of amount due state for taxes
collected.
Repealed by S.L. 1967, ch. 390, § 2.
54-27-07. Apportionment of moneys belonging to counties - How made.
The apportionment of all moneys paid into the state treasury, any part of which is required
by law to be paid to the several counties or to political subdivisions, must be made by the office
of management and budget and state treasurer. The office of management and budget and
state treasurer shall keep an account with each county or political subdivision, crediting it with
all such apportionments and charging it with all sums paid to it. The office of management and
budget shall draw an order on the state treasurer for the amount so credited, and shall forward
the same to the county treasurer of such county or the clerk or auditor of such political
subdivision, and at the same time shall send a written notice to the county auditor or the clerk or
auditor of the political subdivision stating the amount so apportioned.
54-27-08. How moneys paid from state treasury - Warrants - When not necessary.
Except as otherwise provided, moneys may be paid from the state treasury only upon the
warrant or order prepared by the office of management and budget drawn on the state
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treasurer. The director of the office of management and budget shall recommend a form for
order and warrant-check of the state government which must conform, so far as consistent with
statutory requirements, to approved banking practice to facilitate handling of such instruments
by banks and other depositories. When an order and warrant-check is signed by the state
auditor, the state treasurer shall accept the order or warrant with the treasurer's signature,
making the order and warrant-check negotiable. No warrant upon the treasurer may be
delivered or mailed to the payee or the payee's agent or representative until the warrant has
been signed by the treasurer and entered on the treasurer's books as a check drawn on a bank
depository. A record must be maintained specifying upon what fund or from what apportionment
each warrant is to be paid. The state treasurer may redeem outstanding bonds or pay interest
on bonds when due without the warrant of the office of management and budget, retaining the
bond or interest coupon as a voucher for the payment until the next settlement. With respect to
electronic records and electronic signatures, the state treasurer shall utilize the services
provided by the information technology department.
54-27-09. Office of management and budget to cancel unexpended appropriations When they may continue.
Repealed by S.L. 1965, ch. 358, § 20.
54-27-09.1. Standing and continuing appropriations.
Repealed by omission from this code.
54-27-09.2. Appropriations for certain buildings and improvements not to revert if
unused.
Repealed by omission from this code.
54-27-10. Appropriations - When available.
Unless otherwise authorized as provided in this section, seventy-five percent of the
appropriations made by the legislative assembly for the line items of salaries and wages and
operating expenses for any state institution, department, board, commission, or bureau in the
executive branch of state government for the biennium, except institutions under the jurisdiction
and supervision of the state board of higher education, shall become available on the first day of
July next succeeding the enactment by the legislative assembly. The remaining twenty-five
percent of any such appropriations shall be available only at the beginning of the fourth quarter
of the biennium. No state institution, department, board, commission, or bureau in the executive
branch of government for which an appropriation for salaries and wages and operating
expenses is made may disburse more than seventy-five percent of such appropriation during
the first eighteen months of the biennium nor incur any expense or liability which shall be
discharged from such appropriation or for which such appropriation shall become available.
Whenever it is made to appear to the emergency commission by a verified petition submitted by
a state institution, department, board, commission, or bureau in the executive branch of state
government that the percentage of the appropriation for operating expenses allocated for the
first three-quarters of the biennium will not be adequate to properly perform its duties and
functions, because of seasonal or other unusual circumstances, it may authorize a revision of
the allocated percentage in any such items, except salaries and wages, provided it will not
deprive such state institution, department, board, commission, or bureau from maintaining its
office for the fourth quarter of the biennium.
54-27-11. Appropriation - Record kept by office of management and budget - Duties
and limitations.
The office of management and budget shall keep a record showing:
1. The total amount appropriated for maintenance for each state officer or agency, and of
each separate item thereof.
2. The amount equal to seventy-five and twenty-five percent of the total appropriated and
each separate item thereof.
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3.
The amount expended and the balance on hand. The term expended includes
amounts which are payable for which funds have not yet been disbursed.
The office of management and budget may not allow any expenditure or issue any warrant
during the first eighteen months of each biennium in excess of seventy-five percent of any item
appropriated for salaries and wages and operating expenses for any state official or state
agency in the executive branch of government. The duties and limitations imposed upon the
office of management and budget apply only to the total amount appropriated for salaries and
wages and operating expenses for the biennium but not to separate amounts appropriated for
those line items, for all penal and charitable institutions of this state and all institutions under the
jurisdiction and supervision of the state board of higher education. The administrative
department, office, or board shall keep a record showing the amount, equal to seventy-five and
twenty-five percent, respectively, of the total amount and of each separate item appropriated for
salaries and wages and operating expenses for all such institutions under its control and is
responsible for the enforcement of the restrictions upon the expenditure of all moneys
appropriated to such institutions for such purposes.
54-27-12. Expenditure of amount in excess of appropriation for state institutions Unlawful.
The administrative department, office, or board of any penal or charitable state institution, or
the state board of higher education, or any person thereof, in the transaction of the business of
any state institution under its direction or control, may not make nor authorize knowingly any
expenditure in the matter of the erection or improvement of any public building or structure, or
the purchase of any real property, in excess of any appropriation made by the legislative
assembly for such purpose. The president, superintendent, or managing officer of any state
institution conducted under the direction or control of any department, office, or board, or the
state board of higher education may not connive nor conspire knowingly with such departments,
offices, or boards, nor with any member thereof, to procure to be expended in the matter of the
erection or improvement of any public building or structure, or the purchase of any real property
at the state institution of which the person is president, superintendent, or managing officer, any
sum in excess of the appropriation therefor as made by the legislative assembly.
54-27-13. Penalty for expenditure in excess of appropriation for state institutions.
Any person violating the provisions of section 54-27-12 is guilty of a class B misdemeanor,
and is, upon conviction, subject to summary removal from office by the governor, except elected
officials who shall be subject to impeachment.
54-27-14. Cancellation of outstanding warrants.
Repealed by S.L. 1989, ch. 649, § 2.
54-27-15. Procedure when canceled warrant presented for payment.
Repealed by S.L. 1989, ch. 649, § 2.
54-27-15.1. State treasurer's checks, warrants, and warrant-checks - Cancellation Deposit to common schools trust fund - Subsequent payment - Continuing appropriation.
The state treasurer, at the beginning of each fiscal year, shall prepare a list of the checks,
warrants, and warrant-checks drawn on various depositories which are more than three years
old which remain outstanding and unpaid and shall show the number, date, payee (with address
of payee if available), amount, and fund (if available) against which said instrument was drawn.
A copy of such list must then be used as an authority for writing a receipt of the total of such
check or checks and shall credit such amount to the common schools trust fund pursuant to
chapter 47-30.1. One copy of such receipt with list of instruments affected must be provided to
the administrator of unclaimed properties. In the event such check, warrant, or warrant-check is
at any subsequent time presented for payment, or a claim is made by any person for the
amount of any such instrument, further proceedings must be conducted in accordance with
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chapter 47-30.1. These expenditures are hereby subject to a standing and continuing
appropriation.
54-27-15.2. Subsequent payment.
Repealed by S.L. 1959, ch. 372, § 117.
54-27-15.3. Checks of the state department of health and consolidated laboratories Cancellation - Deposit to general fund.
Repealed by S.L. 1989, ch. 649, § 2.
54-27-15.4. Subsequent payment.
Repealed by S.L. 1989, ch. 649, § 2.
54-27-16. Permission of industrial commission necessary for investment of public
funds.
No officer, nor the head of any board, bureau, commission, institution, or industry of the
state, except the Bank of North Dakota, may buy, sell, exchange, or in any manner acquire or
dispose of any stocks, bonds, certificates of indebtedness, notes, mortgages, or other evidence
of debt, in which any of the public funds of said officer, board, bureau, commission, institution,
department, or industry are or may be invested, without first having obtained permission from
the industrial commission of the state. Such permission must be granted by a resolution duly
adopted. The provisions of this section do not apply to loans and investments made by the
board of university and school lands or by the state investment board on behalf of the funds
enumerated in section 21-10-06.
54-27-17. Penalty for investment of public funds without consent of industrial
commission.
Any officer, or the head of any board, bureau, commission, department, institution, or
industry of the state violating any of the provisions of section 54-27-16, is guilty of a class B
misdemeanor.
54-27-18. State a preferred creditor.
The state is a preferred creditor in all cases of payments due to the state under any
contracts.
54-27-19. Highway tax distribution fund - State treasurer to make allocation to state,
counties, and cities.
A highway tax distribution fund is created as a special fund in the state treasury into which
must be deposited the moneys available by law from collections of motor vehicle registration
and related fees, fuels taxes, special fuels taxes, use taxes, and special fuels excise taxes. The
state treasurer shall transfer the first five million five hundred thousand dollars per biennium
from the highway tax distribution fund to the state highway fund for the purpose of providing
administrative assistance to other transferees. After the transfer of the first five million five
hundred thousand dollars, any moneys in the highway tax distribution fund must be allocated
and transferred monthly by the state treasurer, as follows:
1. Sixty-one and three-tenths percent must be transferred monthly to the state
department of transportation and placed in a state highway fund.
2. Two and seven-tenths percent must be transferred monthly to the township highway
fund.
3. One and five-tenths percent must be transferred monthly to the public transportation
fund.
4. Thirty-four and five-tenths percent must be allocated to the counties of this state in
proportion to the number of vehicle registrations credited to each county. Each county
must be credited with the certificates of title of vehicles registered by residents of the
county. The state treasurer shall compute and distribute the counties' share monthly
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5.
after deducting the incorporated cities' share. All the moneys received by the counties
from the highway tax distribution fund must be set aside in a separate fund called the
"highway tax distribution fund" and must be appropriated and applied solely for
highway purposes in accordance with section 11 of article X of the Constitution of
North Dakota. The state treasurer shall compute and distribute monthly the sums
allocated to the incorporated cities within each county according to the formula in this
subsection on the basis of the per capita population of all of the incorporated cities
situated within each county as determined by the last official regular or special federal
census or the census taken in accordance with the provisions of chapter 40-02 in case
of a city incorporated subsequent to the census.
a. For counties having no cities with a population of ten thousand or more, a
statewide per capita average must be used, as determined by calculating
twenty-seven percent of the amount allocated to all of the counties under this
subsection divided by the total population of all of the incorporated cities in the
state. Each city must be paid an amount equal to the product of the statewide per
capita and that city's population.
b. For each county having a city with a population of ten thousand or more, the
amount transferred each month into the county highway tax distribution fund must
be the difference between the amount allocated to that county pursuant to this
subsection and the total amount allocated and distributed to the incorporated
cities in that county as computed according to the following formula:
(1) A statewide per capita average as determined by calculating twenty-seven
percent of the amount allocated to all of the counties under this subsection
divided by the total population of all of the incorporated cities in the state.
(2) The share distributed to each city in the county having a population of less
than one thousand must be determined by multiplying the population of that
city by the product of 1.50 times the statewide per capita average computed
under paragraph 1.
(3) The share distributed to each city in the county having a population of one
thousand to four thousand nine hundred ninety-nine, inclusive, must be
determined by multiplying the population of that city by the product of 1.25
times the statewide per capita average computed under paragraph 1.
(4) The share distributed to each city in the county having a population of five
thousand or more must be determined by multiplying the population of that
city by the statewide per capita average for all such cities, which per capita
average must be computed as follows: the total of the shares computed
under paragraphs 2 and 3 for all cities in the state having a population of
less than five thousand must be subtracted from the total incorporated cities'
share in the state as computed under subdivision a and the balance
remaining must then be divided by the total population of all cities of five
thousand or more in the state.
The moneys allocated to the incorporated cities must be distributed to them monthly
by the state treasurer and must be deposited by the cities in a separate fund and may
only be used in accordance with section 11 of article X of the Constitution of North
Dakota and an incorporated city may use the fund for the construction, reconstruction,
repair, and maintenance of public highways within or outside the city pursuant to an
agreement entered into between the city and any other political subdivision as
authorized by section 54-40-08.
54-27-19.1. Township highway aid fund - Distribution.
The state treasurer shall no less than quarterly allocate and distribute all moneys in the
township highway aid fund to the counties of the state based on the length of township roads in
each county compared to the length of all township roads in the state. To receive any funds
under this section, organized townships must provide fifty percent matching funds. The county
treasurer shall allocate the funds received to the organized townships in the county which
provide fifty percent matching funds based on the length of township roads in each of those
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organized townships compared to the length of all township roads in the county. The funds
received must be deposited in the township road and bridge fund and used for highway and
bridge purposes. If a county does not have organized townships, or has some organized and
some unorganized townships, the county shall retain a pro rata portion of the funds received
based on the length of roads in unorganized townships compared to the length of township
roads in organized townships in the county. Moneys retained by a county for the benefit of
unorganized townships under this section must be deposited in the county road and bridge fund.
Moneys retained by the county treasurer due to the failure of organized townships to provide
required matching funds must be returned to the state treasurer who shall deposit the funds in
the highway tax distribution fund. The board of county commissioners shall certify to the state
treasurer any change in township road mileage when a change occurs and shall, by July first of
each even-numbered year, certify the total number of township road mileage in each of the
county's organized and unorganized townships. The state treasurer shall prescribe the form and
manner by which the certification is made.
54-27-19.2. Reporting of number of motor vehicles registered on Indian reservations Use for determining each county's share of highway tax distribution fund.
Before the tenth day of each month, each governing body of an Indian reservation having a
motor vehicle registration ordinance may report the number of motor vehicles registered on the
reservation to the director of the department of transportation. The director of the department of
transportation shall multiply the number of motor vehicles reported by a factor that represents
the portion of funds in the highway tax distribution fund derived from taxes on motor fuels and
other special fuels during the most recent fiscal year. The director of the department of
transportation shall report the resulting product to the state treasurer for incorporation into the
county distribution formula in subsection 2 of section 54-27-19 as follows:
1. Where the boundaries of the Indian reservation do not encompass more than one
county, the director of the department of transportation shall credit the total product to
that county.
2. Where the boundaries of the Indian reservation encompass more than one county, the
director of the department of transportation shall allocate the product to each county
containing a portion of the Indian reservation in the ratio of the number of reservation
registered motor vehicles in that county to the total of reservation registered motor
vehicles in all the counties containing a portion of that Indian reservation. If the number
of reservation registered motor vehicles in a county containing a portion of an Indian
reservation is not available, the director of the department of transportation shall
allocate the product to each county containing a portion of an Indian reservation in the
ratio of the number of miles of county roads, as designated under section 24-05-16,
within the county on the reservation to the total of the number of miles of county roads
on the reservation.
54-27-20. Revenue sharing trust fund.
A revenue sharing trust fund is hereby created in the state treasury for deposit of all
payments received by the state under the Fiscal Assistance to State and Local Governments
Act (federal-state revenue sharing) [Pub. L. 92-512; 86 Stat. 919] and acts amendatory thereto.
Interest earned on these deposits must be deposited in the trust fund and disbursed in
accordance with federal and state law. Moneys in the trust fund must be disbursed as
authorized by legislative appropriations and federal and state law upon vouchers prepared by
the director of the office of management and budget.
54-27-20.1. State revenue sharing.
Repealed by S.L. 1987, ch. 35, § 5.
54-27-20.2. State revenue sharing distribution formula.
Repealed by S.L. 1997, ch. 19, § 3.
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54-27-20.3. Disbursement of local funds - Reports.
Repealed by S.L. 1997, ch. 19, § 3.
54-27-21. Fixed asset minimum reporting value.
All state departments, agencies, boards, bureaus, commissions, industries, and institutions
shall include all fixed assets under their control in their financial statements, except those having
a value of five thousand dollars or less. The state auditor is authorized to provide for the written
exemption of specific fixed assets having a value of more than five thousand dollars when an
exemption is justified upon generally accepted accounting principles.
54-27-21.1. Documentation of asset acquisitions.
Any state agency or institution that acquires the use of an asset as the result of a lease
arrangement shall prepare a written analysis documenting the decision to acquire the use of the
asset. The agency or institution shall make the analysis available to the auditor for review during
the audit for the fiscal period during which the decision was made.
54-27-22. Revolving fund for prepayment of consulting and planning fees for capital
improvements.
Funds must be made available to all state agencies, institutions, and departments from a
preliminary planning revolving fund in the state treasury under the control of the director of the
office of management and budget for studies, planning, architectural programming, schematic
designs, and cost estimates relating to proposed new capital improvements and major
remodeling of existing facilities. State agencies, institutions, and departments interested in
obtaining planning moneys shall submit a written request detailing the scope and purpose of
such project to the director of the office of management and budget. The director shall file such
request with, and shall present the director's recommendations regarding the proposed project
and necessary planning moneys to the budget section of the legislative management. Funds
may be advanced only in the event that an authorization has first been received from the budget
section. Such funds advanced must be repaid to the preliminary planning revolving fund as
moneys become available through legislative appropriation or other sources for the
commencement of the project.
54-27-23. Cash flow financing.
In order to effectively meet the cyclical cash flow needs of state government, the office of
management and budget upon approval of the emergency commission is hereby authorized to
issue certificates in anticipation of revenue, notes, or bonds, to special funds on deposit in the
state treasury. Any issue of such certificates, notes, or bonds must be approved by the
emergency commission and are to be used for cash flow financing only, and not to offset
projected deficits in state finances unless first approved by the budget section of the legislative
management. The budget section may approve additional cash flow financing not to exceed
eighty percent of estimated general fund revenues relating to sales or production occurring prior
to June thirtieth, to be collected in July and August after the end of the biennium. Such
additional cash flow financing is only effective for sixty days unless an extension or reapproval is
received from the budget section. If a revenue shortfall of greater than five percent occurs, the
office of management and budget shall order budget allotments under section 54-44.1-12 prior
to approval by the budget section of such additional cash flow financing. It is the intent of the
legislative assembly that all borrowing must be repaid by the end of the biennium. The terms of
any specific issue of such certificates, notes, or bonds may not exceed one hundred eighty days
from the date of issuance whereupon the principal and interest on the certificates, notes, or
bonds must be paid in full from the state general fund or from another issue of a similar nature.
All principal and interest on such issues made during a biennial period must be repaid in full at
the close of the biennial period from the state general fund. When certificates, notes, or bonds
are issued for cash flow purposes to funds which otherwise would be invested, with the
investment income accruing to the special fund, the certificate must bear an investment rate of
return which must be agreed upon by the state investment board, and must be at a level
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commensurate with the yield to be reasonably expected by such fund if invested in alternate
securities.
54-27-24. Paying refunds from the general fund.
Each office, agency, or institution that must deposit funds collected in the general fund shall
pay refunds from the general fund.
The office of management and budget shall establish accounting requirements for paying
refunds from the general fund in accordance with the central accounting system.
54-27-25. Tobacco settlement trust fund - Interest on fund - Uses.
1. There is created in the state treasury a tobacco settlement trust fund. The fund
consists of the tobacco settlement dollars obtained by the state under subsection IX(c)
(1) of the master settlement agreement and consent agreement adopted by the east
central judicial district court in its judgment entered December 28, 1998 [Civil
No. 98-3778] in State of North Dakota, ex rel. Heidi Heitkamp v. Philip Morris, Inc.
Except as provided in subsection 2, moneys received by the state under
subsection IX(c)(1) must be deposited in the fund. Interest earned on the fund must be
credited to the fund and deposited in the fund. The principal and interest of the fund
must be allocated as follows:
a. Transfers to a community health trust fund to be administered by the state
department of health. The state department of health may use funds as
appropriated for community-based public health programs and other public health
programs, including programs with emphasis on preventing or reducing tobacco
usage in this state. Transfers under this subsection must equal ten percent of
total annual transfers from the tobacco settlement trust fund of which a minimum
of eighty percent must be used for tobacco prevention and control.
b. Transfers to the common schools trust fund to become a part of the principal of
that fund. Transfers under this subsection must equal forty-five percent of total
annual transfers from the tobacco settlement trust fund.
c. Transfers to the water development trust fund to be used to address the
long-term water development and management needs of the state. Transfers
under this subsection must equal forty-five percent of the total annual transfers
from the tobacco settlement trust fund.
2. There is created in the state treasury a tobacco prevention and control trust fund. The
fund consists of the tobacco settlement dollars obtained by the state under
section IX(c)(2) of the agreement adopted by the east central judicial district court in its
judgment entered December 28, 1998 [Civil No. 98-3778] in State of North Dakota,
ex rel. Heidi Heitkamp v. Philip Morris, Inc. Interest earned on the fund must be
credited to the fund and deposited in the fund. Moneys received into the fund are to be
administered by the executive committee for the purpose of creating and implementing
the comprehensive plan. If in any biennium, the tobacco prevention and control trust
fund does not have adequate dollars to fund a comprehensive plan, the treasurer shall
transfer money from the water development trust fund to the tobacco prevention and
control trust fund in an amount equal to the amount determined necessary by the
executive committee to fund a comprehensive plan.
3. Transfers to the funds under this section must be made within thirty days of receipt by
the state.
54-27-25.1. Water development trust fund expenditures.
Any moneys deposited in the water development trust fund under section 54-27-25 may be
spent only pursuant to legislative appropriations.
54-27-26. Report on transportation funding and expenditures.
Each county, city, and township shall provide to the tax commissioner an annual report on
funding and expenditures relating to transportation projects and programs. The report must be
Page No. 8
provided within ninety days after the close of a calendar year. The report must contain by fund
the beginning balance, revenues by major source, expenditures by major category, the ending
balance, and any other information requested by the tax commissioner. A township may provide
a copy of the appropriate annual township financial report that was provided to the county as the
annual report.
54-27-27. Report on federal grants by state agency.
Each state agency, excluding entities under the control of the state board of higher
education, shall report to the office of management and budget before applying for a federal
grant for which the agency may receive estimated funding of twenty-five thousand dollars or
more. The report must include the purpose of the grant; the potential amount of the grant; any
additional employees that may be required because of the grant; the time period covered by the
grant; and grant requirements, including state matching requirements or maintenance of effort.
The state agency shall provide updates on the status of the grant application as required by the
office of management and budget. At each meeting of the budget section of the legislative
management, the office of management and budget shall report to the budget section on the
reports received from state agencies under this section.
54-27-28. Interest earnings of closed funds.
Unless otherwise directed, interest earned on moneys remaining in a fund which has been
closed must be credited to the general fund.
54-27-29. Effective date of census data - Tax distributions.
Unless otherwise provided by this code, the effective date for federal decennial census data
on any population-based tax distributions made by the state treasurer is July first following the
release of the federal decennial census data.
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