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EARMARKED TAX REVENUES FOR PUBLIC EDUCATION

State Total Amount Percent Distribution Authority Notes
Collections Dedicated Dedicated
(in millions (in millions
of $), FY'06 of $), FY'06
Alabama
Beer $53.0 $21.2 40% Public schools and higher education § 28-3-184
Hydroelectric kilowatt $1.7 $0.7 41.9% Public schools and higher education §§ 40-1-30 and 40-
hours 21-56
Insurance premium $280.4 $31.0 11.1% Public schools and higher education §§ 27-4-2 and 27-4A-
and brokers’ fees 3
Utility gross receipts $352.5 $331.3 94% Public schools and higher education §§ 40-21-87 and 40-
21-107
Use $229.2 $220.4 96.2% Public schools and higher education §§ 40-23-85 and 40-
23-108
Sales $1,807.8 $1,501.5 83.1% Public schools and higher education §§ 28-3-281, 40-23-2,
and 40-23-35
Mobile $84.9 $29.4 34.6% Public schools and higher education § 40-21-123
telecommunications
Property $228.7 $107.2 46.9% Public schools (K-12) § 40-8-3; and
Constitution of
Alabama 1901, § 260
as amended
Individual income $2,531.6 $2,463.8 97.3% Public schools and higher education § 40-18-58
$15.9 0.6% Public schools (K-12) § 40-18-58
Corporate income $368.4 $368.4 100% Public schools and higher education § 40-18-58

Alaska
Cigarette $48.5 $31.1 64.1% Rehabilitation, construction, repair and Alaska Statutes Includes $30.0
associated insurance costs of state school 43.50.140, Alaska million for school
facilities, tobacco use education and Statutes 43.50.190 facilities and $1.1
cessation million for tobacco
use education and
cessation. School
facilities earmark is
constitutionally
dedicated, unlike
other “earmarks.”

Arizona
Education-related sales
$532.4 $532.4 100% Public education and Arizona Department Arizona Revised A 0.6% increase in
of Education Classroom Site Fund Statutes, §§ 42-5029 most sales tax
categories was
approved by the
voters in the
November 2000
General Election.
The increase is 100%
earmarked for
allocation to a variety
of specific education-
related purposes,
with the remainder
allocated to the
ADE’s Classroom
Site Fund.

Arkansas
Corporate Franchise $19.1 $11.2 58.6% Educational Adequacy Fund Arkansas Code 19-5-
1127; 26-54-
113(b)(2)

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EARMARKED TAX REVENUES FOR PUBLIC EDUCATION

State Total Amount Percent Distribution Authority Notes
Collections Dedicated Dedicated
(in millions (in millions
of $), FY'06 of $), FY'06
Sales and Use $2,312.2 $180.2 7.8% Public schools Arkansas Code 6-5-
301; 6-5-302
Sales Tax $2,312.2 $372.5 16.1% Educational Adequacy Fund Arkansas Code 26-52-
316; 26-56-107(d);
26-52-302(d); 26-57-
1002(d)(1)(A)(ii)

Colorado
Income $4,027.7 $313.9 7.8% K-12 Education Article IX, § 17 of the The constitution
Colorado requires that income
Constitution tax collections equal
to 0.033% of taxable
income be deposited
into the State
Education Fund
rather than the
General Fund and
earmarked for K-12
education.

Florida
Gross Receipts Utility $882.2 $882.2 100% Public schools, community colleges, and Chapter 203, Florida
university capital outlay Statutes; Article XII,
§ 9(a)

Idaho
Liquor $1.2 3.6% Public schools Title 23, Chapters 2
and 4, Idaho Code
Car Companies’ Ad $0.1 $0.1 100% Public schools § 63-411, Idaho Code
Val Orem

Illinois
Bingo $3.6 $1.8 50% Public schools 230 Illinois Compiled
Statutes 25/1 to 25/7
Pull Tabs and Jar $6.6 $3.3 50% Public schools 230 Illinois Compiled
Games Statutes 20/1 to 20/7
Riverboat Gambling $816.0 $699.0 85.7% Public school and university programs 230 Illinois Compiled Total collections are
Statutes 10/13 comprised of receipts
from the admissions
tax, wagering tax,
and carryover from
the prior year.
Individual and $668.0 7.3% Public school and university programs 35 Illinois Compiled
Corporate Income Statutes 5/101 to
5/1701
Cigarette and Cigarette $236.9 37.1% Public schools 35 Illinois Compiled
Use Statutes 130/1 to
130/30; and 135/1 to
135/37
Sales $6,595.0 $1,648.7 25% Public schools 35 Illinois Compiled Collections include
Statutes 105/1 to Retailers.
105/22; 110/1 to Occupation Tax,
110/21; 115/1 to Service Occupation
115/21; and 120/1 to Tax, Service Use
120/14 Tax, Use Tax, and
Motor Vehicle Use
Tax.

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EARMARKED TAX REVENUES FOR PUBLIC EDUCATION

State Total Amount Percent Distribution Authority Notes
Collections Dedicated Dedicated
(in millions (in millions
of $), FY'06 of $), FY'06
Telecommunications $538.0 $194.4 36.1% Public schools 35 Illinois Compiled
Excise Statutes 630/1 to
630/21

Louisiana
Federal Offshore Oil $68.6 $68.6 100% K-12 and higher education Louisiana Revised
and Gas Statutes 47:633

Massachusetts
Sales and Use $395.7 10.2% School Modernization and Reconstruction Massachusetts General
Trust (SMRT) Fund Laws, Chapters 64H
and 64I

Michigan
Casino Gaming $145.8 $97.6 66.9% School Aid Fund for K-12 public Michigan Compiled
education Laws 432.201-216
Personal Income $6,108.2 $1,985.6 32.5% School Aid Fund for K-12 public Michigan Compiled The actual
education Laws 206.1 earmarking is equal
to 25.95% of gross
income tax
collections
(collections before
refunds).
Real Estate Transfer $313.5 $313.5 100% School Aid Fund for K-12 public Michigan Compiled
education Laws 207.521
State Education $1,914.6 $1,914.6 100% School Aid Fund for K-12 public Michigan Compiled
education Laws 211.901
Liquor $33.1 $33.1 100% School Aid Fund for K-12 public Michigan Compiled
education Laws 436.2201 to
436.2207
Sales $6,599.1 $4,805.7 73.3% School Aid Fund for K-12 public Michigan Compiled
education Laws 205.51
Tobacco Products $472.7 40% School Aid Fund for K-12 public Michigan Compiled
education Laws 205.421.
Use $1,402.3 $467.5 33.3% School Aid Fund for K-12 public Michigan Compiled
education Laws 205.91

Mississippi
Motor Vehicle $1.3 1.3% State universities §§ 27-19-1 to 27-19-
Privilege 171 and 27-19-301 to
27-19-337,
Mississippi Code
Sales $20.0 0.8% Public school building capital § 27-65-1 to 27-65-
improvements or retirement of bonds 111, Mississippi Code
$42.0 1.8% School districts § 27-65-1 to 27-65-
111, Mississippi Code
$217.4 9.5% Public schools and universities § 27-65-1 to 27-65-
111, Mississippi Code
Use $4.0 1.9% School districts § 27-67-1 to 27-67-
33, Mississippi Code
$18.2 8.8% Public schools and universities § 27-67-1 to 27-67-
33, Mississippi Code

Missouri
Sales and Use $3,074.0 $755.2 24.6% School districts Chapter 144, Revised
Statutes of Missouri

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EARMARKED TAX REVENUES FOR PUBLIC EDUCATION

State Total Amount Percent Distribution Authority Notes
Collections Dedicated Dedicated
(in millions (in millions
of $), FY'06 of $), FY'06
Charitable Bingo $4.6 $2.7 100% Public schools § 313.055, Revised
Statutes of Missouri
Gaming Gross $300.5 $270.5 90% Public schools § 313.822, Revised
Receipts Statutes of Missouri
Insurance $198.2 $99.6 50.3% School districts §§ 148.310 to
148.461, and
384.051, Revised
Statutes of Missouri

Montana
Oil and Gas $1.9 1.3% State universities 15-36-331
Production
Property $180.6 $11.8 6.5% State university system 15-10-107

Nebraska
Insurance Premium $55.7 $16.0 28.7% School districts Nebraska Revised FY 2005 amounts are
Statutes, §§ 77-912 derived from CY
and 77-913 2003 collections
Severance $2.5 $2.5 100% Support and maintenance of public schools Nebraska Revised Of the distribution
and administration of tax Statutes, § 57-705 for administration of
the severance tax, up
to $300,000 may be
appropriated to the
State Energy Office
and up to $30,000
may be appropriated
to the Public Service
Commission for
administration of the
Municipal Natural
Gas Regulation
Revolving Fund; the
remainder is
deposited in the
permanent school
fund for support and
maintenance of the
public schools.

Nevada
Estate $21.8 $10.3 47.1% University of Nevada System endowment Chapter 375A,
Nevada Revised
Statutes
$10.3 4% K-12 education Chapter 375A,
Nevada Revised
Statutes
Sales and Use: Local $994.1 $986.7 99.3% County school districts and charter schools Chapter 374, Nevada
School Support Revised Statutes
Annual Slot $52.2 $36.8 70.5% School districts Chapter 463.385,
Nevada Revised
Statutes

New York
Personal Income $3,058.9 10.9% School Tax Relief Fund (STAR) Article 6, State Variable percentage
Finance Law based on the cost of
the STAR program.

North Carolina

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EARMARKED TAX REVENUES FOR PUBLIC EDUCATION

State Total Amount Percent Distribution Authority Notes
Collections Dedicated Dedicated
(in millions (in millions
of $), FY'06 of $), FY'06
Corporation Income $1,272.1 $78.4 6.2% Public school building capital fund North Carolina
General Statutes 105-
130.0 to 105-132.0,
105-163.38 105-
163.44, 105-164.44C,
105-275.1, 105-
277.001, 105-277.1A,
115C-489.1, and
115C-546.1
$0.1 0% Local School Construction Financing North Carolina
Study Commission General Statutes 105-
130.0 to 105-132.0,
105-163.38 105-
163.44, 105-164.44C,
105-275.1, 105-
277.001, 105-277.1A,
115C-489.1, and
115C-546.1

North Dakota
Oil Extraction $9.1 20% Public schools North Dakota
Century Code,
chapter 57-51.1
Coal Severance $3.3 2.9% Loans to school districts for school
construction and loans to cities, counties
and school districts affected by coal
development

Oklahoma
Severance on Oil $201.8 $14.9 7.4% School districts §§ 68-1001 to 68-
1024, Oklahoma
Statutes
$135.0 66.9% Common education, higher education and §§ 68-1001 to 68-
Oklahoma student aid 1010a Oklahoma
Statutes
Corporate Income $30.4 16.5% Education reform programs §§ 68-2351 to 68-
2385.31
Individual Income $2,493.4 $208.0 8.3% Education reform programs §§ 68-2351 to 68-
2385.31
Use $119.0 $13.2 11.1% Education reform programs §§ 68-1401 to 68-
1411, Oklahoma
Statutes
Rural Electric $20.2 $19.2 95% School districts §§ 68-1801 to 68-
Cooperative 1807, Oklahoma
Statutes

Oregon
Gas and Oil $0.1 $0.1 100% Public schools Oregon Revised
Production Statutes, § 324.340

South Carolina
Commercial Nuclear $11.8 $11.8 100% Public school facilities assistance and § 48-48-140, South
Waste Tax higher education scholarship grants Carolina Code of
Laws

South Dakota
Rural Electric $5.7 $5.7 100% School districts SDCL 10-33-28
Companies

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EARMARKED TAX REVENUES FOR PUBLIC EDUCATION

State Total Amount Percent Distribution Authority Notes
Collections Dedicated Dedicated
(in millions (in millions
of $), FY'06 of $), FY'06
Small $9.1 $9.1 100% School districts SDCL 10-33-28
Telecommunication
s Companies

Tennessee
Mixed Drink $42.9 $19.5 45.4% Public schools TCA 57-4-306 and
49-3-357
Sales and Use $6,050.0 $3,472.2 57.4% Public schools Tennessee Code 67-6-
103, 67-6-201 to 67-
6-205, 67-6-221, 67-
6-509; and 9-9-106
and 49-3-357
Tobacco $121.2 $120.6 99.5% Public schools Tennessee Code 67-4-
1002 to 67-4-1005,
67-4-1015, 67-4-
1020, 67-4-1025; and
47-25-311and 49-3-
357

Texas
Attorney Occupation $11.7 $2.9 25% Public schools Texas Tax Code,
§ 191.141 to 191.145
Oil Well Service $22.2 $5.6 25% Public schools Texas Tax Code,
§ 191.083
Cement Production $8.8 $2.2 25% Public schools Texas Tax Code,
§ 181.002
Gas, Electric and $353.6 $80.9 22.9% Public schools Texas Tax Code,
Water Utility § 182.022
Diesel Fuel $166.3 24.8% Public schools Texas Tax Code,
§ 153.202, 153.210,
153.212
Gasoline $563.1 24.5% Public schools Texas Tax Code,
§ 153.102 and
153.109
Liquefied Gas $0.4 24.8% Public schools Texas Tax Code,
§ 153.301 and
153.305
Natural Gas $1,657.1 $414.3 25% Public schools Texas Tax Code,
§ 201.052, 201.054,
and 201.055
Oil Production $681.3 $170.3 25% Public schools Texas Tax Code,
§ 202.052
Sulfur Production $3.4 $0.8 25% Public schools Texas Tax Code,
§ 203.003
Coin-Operated $8.7 $2.2 25% Public schools Texas Revised Civil
Machine Statutes Annotated,
Article 8802
Texas continued, $1,127.3 $281.8 25% Public Schools Texas Insurance Code
Insurance Premium Arts. 1.14-2, 4.10,
9.59, 21.46, 101.251,
101.252

Utah
Corporate Franchise $198.0 $198.0 100.0% Public schools Utah Code, §§ 59-7-
101 to 805; and 59-1-
401 to 403

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EARMARKED TAX REVENUES FOR PUBLIC EDUCATION

State Total Amount Percent Distribution Authority Notes
Collections Dedicated Dedicated
(in millions (in millions
of $), FY'06 of $), FY'06
Gross Receipts $15.3 $15.3 100.0% Public schools Utah Code, §§ 59-8-
101 to 106; 59-8a-101
to 106
Individual Income $1,934.0 $1,934.0 100.0% Public schools Utah Code, § 59-10-1
to 604

Vermont
State Sales Tax $310.8 $103.6 33.3% State Education Fund 16 VSA s4025(a)(6)

Washington
Public Utility District $16.4 34.8% Public schools Chapter 54.28,
Privilege Revised Code of
Washington
State Property $1,372.6 $1,372.6 100.0% Public schools, including debt service for §§ 84.52.065 and
capital construction 84.52.067, Revised
Code of Washington

West Virginia
Sales Tax (Use Taxes $960.2 $27.2 2.8% School construction projects West Virginia Code
Not Included) §11-15-30

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