A bill to amend chapter 67 of title 31, United States Code, relating to general revenue sharing, with respect to the determination of tax effort.

Declares that, in determining a State's net amount of State and local taxes for the purpose of calculating the general tax effort factor for general revenue sharing entitlement periods, where a statewide referendum or action approved by the citizens of a State has limited taxes, the amount of taxes taken into account shall not be less than the amount of such taxes taken into account for the last entitlement period before the referendum became effective.