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Paycheck Protection Program355 and including other changes over the past several years. <br />Regardless of the particular method of conformity and the effect on net tax revenue, Treasury <br />views such changes as permissible under the offset provision. <br />Accordingly, and for the reasons discussed above, Treasury is maintaining the definition <br />of covered change without change. <br />Tax revenue. The interim final rule's definition of "tax revenue" is based on the Census <br />Bureau's definition of taxes, used for its Annual Survey of State Government Finances.356 It <br />provides a consistent, well -established definition with which states and territories will be familiar <br />and is consistent with the approach taken in section Revenue Loss of this Supplementary <br />Information describing the implementation of sections 602(c)(1)(C) and 603(c)(1)(C) of the <br />Social Security Act regarding revenue loss. A number of commenters expressed concern and <br />requested clarification regarding the definition of "tax revenue." These comments and responses <br />are discussed in section Revenue Loss of this Supplemental Information and, for the reasons <br />discussed above, Treasury is finalizing the definition of tax revenue without change and <br />maintaining a consistent definition of "tax revenue."357 <br />Baseline. For purposes of measuring a reduction in net tax revenue, the interim final rule <br />measures actual changes in tax revenue relative to a revenue baseline (baseline). The baseline is <br />calculated as fiscal year 2019 (FY 2019) tax revenue indexed for inflation in each year of the <br />355 See Statement on State Fiscal Recovery Funds and Tax Conformity, April 7, 2021, available at <br />https://home.treasury.gov/news/press-releases/jy0113 . <br />356 U.S. Census Bureau, Annual Survey of State and Local Government Finances Glossary, <br />https://www.census.gov/programs-surveys/state/about/glossary.html (last visited Apr. 30, 2021). <br />357 As discussed in section Revenue Loss of this Supplementary Information, for purposes of measuring revenue lost <br />due to the pandemic under sections 602(c)(1)(C) and 603(c)(1)(C), recipients must adjust the amount of revenue lost <br />to reflect changes that resulted from a tax increase or decrease. These adjustments do not apply to or affect the <br />definition of tax revenue. <br />326 <br />