Formula for Reserve Funds for Income Tax

Refunds, Earned Income Tax Credits, and Child Tax Credits. COL9192018 CH. 50 INCOME TAX REFUND RESERVE FUND Each year, the Director of Revenue and Taxation, in consultation with the Director of Administration and the Director of the Bureau of Budget and Management Research, shall establish a formula for reserving income tax receipts to pay income tax refunds, earned income tax credits, and child tax credits. Such formula shall be derived from the statistical average of income tax refunds, earned income tax credits, and child tax credits issued in the previous three

(3)years, and shall further provide for reserving income tax receipts, on a percentage basis, in order to accumulate sufficient cash reserves to pay projected income tax refunds, earned income tax credits, and child tax credits in a timely manner. Notwithstanding any other provision of law, such cash receipts may be used to pay for prior years’ income tax refunds, earned income tax credits, and child tax credits.