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U.S. DEPARTMENT Qp THE TREASURY <br /> a. Calculate revenues collected in the most recent full fiscal year prior to the public health <br /> emergency(i.e., last full fiscal year before January 27, 2020), called the base year <br /> revenue. <br /> b. Estimate counterfactual revenue,which is equal to the following formula, where n is the <br /> number of months elapsed since the end of the base year to the calculation date: <br /> n <br /> base year revenue x (1f growth odb/otmant)12 <br /> The growth adjustment is the greater of either a standard growth rate--5.2percent--o/ <br /> the recipient's average annual revenue growth in the last full three fiscal years prior to <br /> the COV|D-19 public health emergency. <br /> c. Identify actual revenue, which equals revenues collected over the twelve months <br /> immediately preceding the calculation date. <br /> Under the final rule, recipients must adjust actual revenue totals for the effect of tax <br /> cuts and tax increases that are adopted after the date of adoption of the final rule <br /> (January 6, 2022). Specifically,the estimated fiscal impact of tax cuts and tax increases <br /> adopted after January 6, 2022, must be added or subtracted to the calculation of actual <br /> revenue for purposes of calculation dates that occur on or after April 1,, 2022. <br /> Recipients may subtract from their calculation of actual revenue the effect of tax <br /> increases enacted prior to the adoption of the final rule. Note that recipients that elect <br /> to remove the effect of tax increases enacted before the adoption of the final rule must <br /> also remove the effect of tax decreases enacted before the adoption of the final rule, <br /> such that they are accurately removing the effect of tax policy changes on revenue. <br /> d. Revenue loss for the calculation date is equal to counterfactual revenue minus actual <br /> revenue (adjusted for tax changes)for the twelve-month period. If actual revenue <br /> exceeds counterfactual revenue,the loss is set to zero for that twelve-month period. <br /> Revenue loss for the period of performance is the sum of the revenue loss on for each <br /> ca|cu|ationdate. <br /> The supplementary information in the final rule provides an example of this calculation,which <br /> recipients may find helpful, in the Revenue Loss section. <br /> ComnovirusItote& Local Fiscal Recovery Funds:Overview nf tile Final Rule <br /> <1f. Department nf the Treasury 10 <br />