State and Local Fiscal Assistance Act of 1983

State and Local Fiscal Assistance Act of 1983 - Amends title 31 (Money and Finance) of the United States Code to revise the procedure for allocating revenue sharing funds. Directs the Secretary of the Treasury to make entitlement payments out of the State and Local Government Fiscal Assistance Trust Fund for each entitlement period to each qualifying State and unit of general local government.

Makes appropriations to the Trust Fund for each entitlement period in an amount equal to four percent of the amounts received into the Treasury during the preceding fiscal year that are attributable to income taxes imposed by the Internal Revenue Code.

Revises the qualification procedures for entitlement to revenue sharing funds.

Sets forth a new formula for the allocation of funds among the States.

Requires the Secretary to develop a representative tax system to be used in applying the revenue sharing provisions. Defines such a system as a method of determining the fiscal capacity of a government by estimating the revenue such government would raise if it applied a national uniform set of tax rates to a specified set of tax bases and collected equal per capita user fees and charges. Requires the Secretary to use any such system developed according to a specified procedure, unless both Houses of Congress pass a concurrent resolution of disapproval within 45 days.

Provides that the Secretary shall allocate the funds allocated to a State so that 50 percent goes to the State government and 50 percent to units of general local government.

Provides for the election by a State of a different allocation formula whereby the State government is apportioned an amount equal to the product of its revenue percentage multiplied by the amount of such funds, and the units of general local government are allocated the remainder of such funds.

Revises the procedure for determining the amounts of entitlements for State governments.

Provides for special entitlements to Indian tribes or Alaskan Native villages that have a recognized governing body carrying out substantial governmental duties and powers.

Revises the procedure for determining the amount of funds each unit of general local government shall be entitled to receive for each entitlement period.

Permits a State government to provide by law for the allocation of amounts among units of general local government (except Indian tribes or Alaskan Native villages) on the basis of population multiplied by the general tax effort factors or relative income factors of such local governments, or a combination of those factors.

Raises the maximum per capita State allocation that a local government may receive from 145 percent to 175 percent. Lowers the minimum per capita State allocation that a local government may receive from 20 percent to 15 percent.

Prohibits the entitlement of any unit of local government for any entitlement period from being more than 50 percent of the amount of the sum of: (1) taxes imposed by such unit; plus (2) transfers of revenue to such government from another government as a share in financing, or a reimbursement for, the carrying out of governmental duties and powers.

Sets forth the procedures for congressional disapproval of the representative tax system.

Revises the reporting requirements for each State and local government receiving an entitlement.

Amends the Internal Revenue Code to limit the deductibility of State and local taxes on the individual income tax to amounts in excess of one percent of adjusted gross income. Makes such limitation applicable with respect to taxable years beginning after December 31, 1983.