121st Maine Legislature
		Office of Fiscal and Program Review
		LD 613
		An Act To Allow Vendors to Retain a Portion of Sales Tax They Collect to Cover Costs
		LR 0364(01)
		Fiscal Note for Original Bill
		Sponsor: Sen. Lemont of York
		Committee: Taxation
		Fiscal Note Required: Yes
Fiscal Note
					Projections	Projections
			2003-04	2004-05	2005-06	2006-07
Net Cost (Savings):
	General Fund		$11,484,463	$13,723,427	$13,860,661	$13,999,268
Appropriations/Allocations
	General Fund		$36,150	$0	$0	$0
Revenue
	General Fund		($11,448,313)	($13,723,427)	($13,860,661)	($13,999,268)
	Other Special Revenue Funds		($627,967)	($752,762)	($760,289)	($767,892)
Fiscal Detail and Notes
	This bill establishes a collection allowance to provide reimbursement to people who collect sales and use taxes.  This change will reduce sales and use tax collections by an estimated $12,076,280 in fiscal year 2003-04 and $14,476,189 in fiscal year 2004-05.  The reduction of these tax collections will decrease the amounts transferred to the Local Government Fund for state-municipal revenue sharing in those years by $627,967 and $752,762.  The resulting net reduction of General Fund revenue is estimated to be $11,448,313 in fiscal year 2003-04 and $13,723,427 in fiscal year 2004-05, based on an effective date of October 1, 2003.  Maine Revenue Services will also require a General Fund appropriation of $36,150 in fiscal year 2003-04 for the related administrative costs.