The Pennsylvania Supreme Court has found that the tax that funds the popular Local Share Account grant program is unconstitutional.

However, legislators will have 120 days to come up with a new law before the decision takes effect.The Local Share Account grant program is one of the most popular in the state. Boroughs, nonprofits, and economic development groups across the state count on it to purchase police cars and rehabilitate structures. Pennsylvania casinos have paid tens of millions of dollars to their host communities. The loss will have great impact locally.The deadline to submit applications for the 2017 program is Oct. 1, and many municipalities in Carbon County have already passed resolutions to apply for grants for police equipment and other needs.For example, Lansford is applying for $950,000 for the pool and Nesquehoning has applied for $130,000 plus to complete a road project in the borough.Carbon County partnered with over a dozen municipalities to secure nearly $1 million in funds for the narrow-band radio replacement project.Carbon COG secured $100,000 for a piece of construction equipment that will be shared between the municipalities that are in the COG.Carbon County applied for nearly $80,000 on behalf of Jim Thorpe Sports Hall of Fame for an addition to the Jim Thorpe monument.Kidder Township received $79,199 to renovate the township building, buy a new police cruiser, and provide new airpacks for the fire company.Penn Forest Township has applied for a grant for the Route 903 park. Polk Township is hoping to use funds for the Hell Hollow culvert project and road repairs. Chestnuthill Township has used funds for road work and road buildings. Weatherly received $600,000 for the new municipal building.The Monroe Council of Local Governments purchased four-wheel drive ambulances for the West End and other rescue squads last year.The Supreme Court issued a decision Wednesday in a lawsuit filed by Mount Airy No. 1 LLC, the company which owns Monroe County’s Mount Airy Casino, against the Pennsylvania Department of Revenue, finding that the Local Share Tax levied under the state’s gaming law violates the equal protection clause.Mount Airy argued that the Local Share Tax authorized by the state’s gaming law was applied unequally. It also argued that casinos that had less than $500 million per year in gross revenue have to pay an unequal share of the tax.Under the state’s original 2004 casino law, casinos must pay at least 4 percent of gross slot-machine gambling revenues to their host communities. That includes 2 percent to counties and 2 percent or $10 million, whichever is greater, to municipalities.The court didn’t have a problem with the local share tax itself, but rather the unequal way that it is applied.Under Act 71, the state’s gaming law, casinos outside of Philadelphia are required to pay taxes on their gross revenue to the municipality and county where they are located. That money goes into the Local Share Account.The LSA program is used to fund grants for projects in the counties where the casinos are located. Mount Airy’s is unique, because the surrounding counties — Carbon, Lackawanna, Northampton, Pike and Wayne — are also eligible.In its opinion, the court recognized the importance of the LSA program to many municipalities. The court agreed to put a stay on the decision for 120 days so that legislators can have a chance to rewrite the law.The Associated Press contributed to this report.