Question #1: Do you favor paying for the plan by raising the sales tax rates by 2%?

Question #2: Do you favor paying for the plan by removing some sales tax exemptions and increasing sales tax rates by no more than 1%?"

The legal voters of each city, town and plantation shall vote by ballot on this question and designate their choice by a cross or check mark placed within a corresponding square below the word "Yes" or "No." The ballots must be received, sorted, counted and declared in open ward, town and plantation meetings and returns made to the Secretary of State in the same manner as votes for members of the Legislature. The Governor shall review the returns and, if it appears that a majority of the legal votes are cast in favor of the Act, the Governor shall proclaim that fact without delay, and the Act takes effect 30 days after the date of the proclamation.

The Secretary of State shall prepare and furnish to each city, town and plantation all ballots, returns and copies of this Act necessary to carry out the purposes of this referendum.

Sec. 25. Application. That section of this Act that amends the Maine Revised Statutes, Title 5, section 1513 and that section of this Act that enacts Title 5, section 1521 apply to fiscal years beginning with fiscal year 2003-04.

SUMMARY

This bill provides for a statutory referendum designed to achieve tax relief for residents and businesses in the State and implement comprehensive tax and education funding reform. The bill provides property tax relief by establishing a cap on local property taxes of 12 mills on secondary residential property and 4 mills on all other property for the purpose of funding public education. Additional money for public education could be raised from the property tax only if approved by the voters at a