CONCEPT DRAFT

SUMMARY

This bill is a concept draft pursuant to Joint Rule 208.

This bill proposes to impose a gross receipts tax of 0.5% on certain retail stores that are located outside of a downtown, as defined in the Maine Revised Statutes, Title 30-A, section 4301, subsection 5-A. The tax would be imposed on retail stores that have retail floor space greater than 6,000 square feet, that are located with other stores in a common shopping facility containing retail floor space greater than 6,000 square feet or that are served by adjacent parking lots greater than 2 acres in aggregate size.

The bill proposes to establish the Maine Community Preservation Fund to receive the proceeds of the gross receipts tax. The fund would be used for the following purposes in order of priority.

1. The fund would be used to transfer up to $2,000,000 per month into the Maine Milk Pool or any lesser amount that the Maine Milk Commission determines is necessary to compensate Maine dairy farmers for 50% of the difference between $17 per hundredweight and the adjusted wholesale price of milk on a month-to-month basis, beginning with payments for each of the 3 months immediately preceding the effective date of the bill.

2. The fund would be used to transfer $500,000 per month into the Land for Maine's Future Fund beginning January 1, 2004. Payments made from January 2004 to June 2005 must first be applied to payments on bonds issued to support the fund.

3. The fund would be used to transfer $20,000 per month to the Downtown Leasehold Improvement Fund beginning in January 2004.

4. The fund would be used to support an agricultural property tax program.

5. The fund would be used to transfer money to a fund to support consumption of Maine milk, fruit and produce in Maine schools.

6. The fund would be used to fund the geographic information system established by the Department of Administrative and Financial Services, Bureau of Information Services.