LD 865
pg. 1
LD 865 Title Page An Act to Reduce the Personal Income Tax LD 865 Title Page
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LR 1657
Item 1

 
Be it enacted by the People of the State of Maine as follows:

 
Sec. 1. 36 MRSA §5111-C is enacted to read:

 
§5111-C.__Income tax rate adjustment

 
1.__Definitions.__As used in this section, unless the context
otherwise indicates, the following terms have the following
meanings.

 
A.__"Revenue projection" means the projection of General
Fund revenue for the current fiscal year made by the Revenue
Forecasting Committee, as established in Title 5, section
1710-E, for purposes of its December 1st report.

 
2.__Determination by State Budget Officer.__On September 1st
annually, the State Budget Officer shall determine the amount, if
any, by which General Fund revenue for the previous fiscal year
exceeded the revenue projection for that year.

 
3.__Adjustment to rates.__If the State Budget Officer
determines under subsection 2 that General Fund revenue for the
previous fiscal year exceeded the revenue projection for that
year by more than 5%, the State Tax Assessor shall reduce the tax
rates specified in section 5111 by the same proportion that the
General Fund revenue for the fiscal year exceeds 105% of the
revenue projection.__The rates determined under this subsection
apply to tax years beginning in the calendar year in which the
adjustment is made.

 
SUMMARY

 
This bill proposes to reduce income tax rates if General Fund
revenues for the previous fiscal year exceeded the December 1st
projections for that fiscal year by more than 5%. Income tax
rates would be reduced by the proportion by which General Fund
revenues exceeded 105% of revenue projections.


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