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Previously Adopted Tax Changes <br />As discussed above, the final rule will not require recipients to reflect the revenue effects <br />of tax increases or decreases adopted prior to the adoption of the final rule. Recipients that <br />adopted a tax change in a previous period will not be required to recalculate the amount of <br />revenue loss as of prior calculation dates or to reflect the fiscal impacts of such tax changes in <br />calculation dates after the effective date of the final rule. However, the final rule will permit <br />recipients to elect to reflect the revenue effects of their tax changes adopted between the <br />beginning of the public health emergency and the adoption of the final rule.299 If a recipient <br />elects to do so, it must do so with respect to all of its tax changes adopted between the beginning <br />of the public health emergency and the adoption of the final rule. Treasury intends to revise its <br />reporting requirements to permit recipients to amend their previously reported calculation <br />periods to reflect such changes. <br />Determination of the Base Year <br />Under the ARPA and interim final rule, SLFRF funds may be used "for the provision of <br />government services to the extent of the reduction in revenue ... relative to revenues collected in <br />the most recent full fiscal year" of the recipient. Therefore, the base year for the revenue loss <br />calculation is the most recent full fiscal year prior to the COVID-19 public health emergency. <br />Public Comment: Treasury received multiple comments asking for flexibility in <br />determining base year revenues. For instance, some commenters asked to use a different base <br />year than the "most recent full fiscal year" prior to the pandemic for calculating revenue loss; <br />299 The final rule also addresses the possibility that some recipients may have fiscal years ending during the period <br />between January 6, 2022 and April 1, 2022; such recipients' election to reflect tax changes from prior periods would <br />also apply to changes during this period with respect to the calculation date in this period. <br />257 <br />