Revenue Share

Revenue share - dispensing a portion of federal tax revenue to state and local governments to assist in meeting their monetary needs [Webster`s Dictionary].
Revenue sharing is a distribution model used by organizations. Firms distribute their revenue among stakeholders and shareholders. To appreciate their employees, some firms distribute revenue through employee bonuses. Primarily revenue distribution is a firm sharing its success with everyone—especially stakeholders. It ensures continuous support and builds a long-term relationship between the firm and its stakeholders. Governments also distribute revenue; it goes hand in hand with the decentralization of power. Hence, it is often referred to as federal revenue sharing [WallStreetMojo].

Revenue sharing is a government unit apportioning part of its taxable income to other government units. For example, provinces or states may share revenue with local governments, or national governments may share revenue with provinces or states. Laws determine the formulas by which revenue is shared; the units that receive the money are free from most controls by the granting unit. The receiving units may or may not be required to match the amounts received [Encyclopedia Britannica].

Sources:

Revenue sharing. Encyclopedia Britannica. Retrieved from: https://www.britannica.com/topic/revenue-sharing

Revenue sharing. Webster`s Dictionary. Retrieved from: https://www.merriam-webster.com/dictionary/revenue%20sharing

What is revenue sharing. WallStreetMojo. Retrieved from: https://www.wallstreetmojo.com/revenue-sharing/