CONCEPT DRAFT

SUMMARY

This bill is a concept draft pursuant to Joint Rule 208. It seeks to amend the laws governing taxation in the following ways:

1. Eliminate the personal property tax and reimburse municipalities for 100% of the resulting loss of tax revenue through a revenue-sharing program separate from the state- municipal revenue sharing provided for in the Maine Revised Statutes, Title 30-A, section 5681;

2. Eliminate the sales tax exemption for machinery and equipment used in production;

3. Eliminate the program established in the Maine Revised Statutes, Title 36, chapter 915 that provides for reimbursement for taxes paid on certain business property; and

4. Impose a 1% tax on ingredients and components used in production.