LD 1629
pg. 54
Page 53 of 55 RESOLUTION, Proposing a Competing Measure under the Constitution of Maine To Cr... Page 55 of 55
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LR 2165
Item 1

 
Part D establishes the Local Option Sales Tax Reserve Fund. Part
D requires the State Controller to transfer $956,561 in fiscal year
2004-05 from the Undedicated Revenue Account within the General
Fund to the fund to pay for start-up costs of the administration of
the local option sales tax. Part D also provides for the transfer
to the fund of 2% of revenues attributable to a local option sales
tax adopted pursuant to the Maine Revised Statutes, Title 36,
chapter 215 to be used only for the administration of the local
option sales tax.

 
Part D provides the necessary appropriations and allocations.

 
It appropriates $254,286 in fiscal year 2004-05 from the
General Fund for 3 Claims Administration positions and related
expenses in the Department of Administrative and Financial
Services.

 
It deappropriates $34,931,664 from the General Fund due to
the repeal of the Maine Revised Statutes, Title 36, chapter 105,
subchapter 4-B as of April 1, 2004.

 
It appropriates from the General Fund in fiscal year 2004-05
to the Municipal Service District Fund $7,821,908 of one-time
savings from repeal of the Maine Revised Statutes, Title 36,
chapter 105, subchapter 4-B.

 
It appropriates $190,000 from the General Fund in fiscal year
2004-05 to reimburse municipalities for 90% of the estimated
local administrative costs incurred from the repeal of the Maine
Revised Statutes, Title 36, chapter 105, subchapter 4-B.

 
It appropriates $25,807,443 from the General Fund in fiscal
year 2004-05 for increased benefits under the Maine Residents
Property Tax Program due to the expansion in the program.

 
It appropriates $275,183 from the General Fund in fiscal year
2004-05 to provide funds to hire additional personnel to process
the increased number of applications due to the expansion in the
Maine Residents Property Tax Program. This appropriation also
includes funds to make changes in Maine's automated tax system to
reflect the changes in the program and to print and mail the
additional application forms and instructions.

 
It allocates $956,561 from Other Special Revenue funds to
provide initial funding to pay for the costs of implementing the
local option sales tax initiative. Start-up costs will be for
software development. Funds allocated for fiscal year 2004-05
will pay the cost of ongoing administration of the initiative.


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