131st MAINE LEGISLATURE
		LD 1882		LR 2398(02)
	An Act to Increase the Deduction from Income for Pension Benefits
	Fiscal Note for Bill as Amended by Committee Amendment " "
	Committee: Taxation
	Fiscal Note Required: Yes
Fiscal Note
			FY 2023-24	FY 2024-25	Projections  FY 2025-26	Projections  FY 2026-27
Net Cost (Savings)
	General Fund		$14,107,500	$28,072,500	$34,057,500	$48,402,500
Revenue
	General Fund		($14,107,500)	($28,072,500)	($34,057,500)	($48,402,500)
	Other Special Revenue Funds		($742,500)	($1,477,500)	($1,792,500)	($2,547,500)
Fiscal Detail and Notes
	This bill increases the pension deduction amount for tax years beginning in 2023 to $35,000 and for tax years beginning on or after January 1, 2024 to the maximum annual benefit under the Social Security Act. General Fund revenue will decrease by $14,107,500 in fiscal year 2023-24 and $28,072,500 in fiscal year 2024-25. The reductions in income tax revenue will reduce Local Government Fund revenue by $742,500 in fiscal year 2023-24 and $1,477,500 in fiscal year 2024-25. Administrative costs to the Department of Administrative and Financial Services, Bureau of Revenue Services associated with the change to the pension deduction amount are expected to be minor and can be absorbed within existing budgeted resources.