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121st Maine Legislature |
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Office of Fiscal and Program Review |
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LD 1141 |
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An Act
to Provide Property Tax Relief for Maine Residents and Businesses and
Implement Comprehensive Tax Reform |
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LR 0392(06) |
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Fiscal Note for Senate Amendment " " |
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Sponsor: Sen. Stanley |
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Fiscal Note Required: Yes |
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| Fiscal Note |
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Projections |
Projections |
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2003-04 |
2004-05 |
2005-06 |
2006-07 |
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| Net Cost
(Savings) |
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General Fund |
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$0 |
$0 |
$0 |
$0 |
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| Appropriations/Allocations |
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General Fund |
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$0 |
$33,424,519 |
$33,836,085 |
$34,358,107 |
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Other Special Revenue Funds |
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$0 |
$33,508,856 |
$5,336,136 |
$5,567,653 |
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| Revenue |
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General Fund |
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$0 |
($28,793,642) |
($29,710,026) |
($31,549,633) |
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Other Special Revenue Funds |
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$0 |
$109,646,796 |
$126,991,900 |
$133,052,237 |
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| Transfers |
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General Fund |
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$0 |
$62,218,161 |
$63,546,111 |
$65,907,740 |
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Other Special Revenue Funds |
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$0 |
($91,381,906) |
($63,546,111) |
($65,907,740) |
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| Fiscal Detail
and Notes |
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Projections |
Projections |
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2003-04 |
2004-05 |
2005-06 |
2006-07 |
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General Fund Appropriations |
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Increase homestead exemption to $11,000, no tier |
$26,916,336 |
$27,399,700 |
$27,902,963 |
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Mainely Small
Business Capital Fund (FAME) |
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$6,000,000 |
$6,000,000 |
$6,000,000 |
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Tree Growth Reimbursement |
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$100,000 |
$102,000 |
$104,040 |
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Administrative and Mandate costs |
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$408,183
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$334,385 |
$351,104 |
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Total
General Fund Appropriations |
$0 |
$33,424,519
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$33,836,085
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$34,358,107
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Projections |
Projections |
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2003-04 |
2004-05 |
2005-06 |
2006-07 |
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General Fund Revenue |
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Homestead Property Tax Cap Program |
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($25,291,220) |
($26,248,785) |
($28,089,585) |
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Small Business Job Creation Tax Refund |
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($3,796,000) |
($3,792,000) |
($3,792,000) |
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Individual income tax - property tax reimbursement |
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$293,578 |
$330,759 |
$331,952 |
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Total
General Fund Revenue |
$0 |
($28,793,642) |
($29,710,026) |
($31,549,633) |
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Disproportionate Tax Burden Fund - Increases
(Decreases) to Balance |
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Sales tax to 6% * |
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$5,892,504 |
$6,965,800 |
$7,298,224 |
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Homestead Property Tax Cap |
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($1,359,170) |
($1,439,807) |
($1,540,779) |
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Small Business Job Creation Tax Refund |
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($204,000) |
($208,000) |
($208,000) |
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Individual income tax - property tax reimbursement |
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$15,777 |
$18,143 |
$18,208 |
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Net Increase (Decrease) |
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$0 |
$4,345,111
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$5,336,136
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$5,567,653 |
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Education Funding Stabilization Fund (EFSF) -
Increases (Decreases) to Balance |
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Sales tax to 6% - Net * |
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$109,646,796 |
$126,991,900 |
$133,052,237 |
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Transfers to General Fund |
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($62,218,161) |
($63,546,111) |
($65,907,740) |
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Allocation to General Purpose Aid for Local
Schools |
($29,163,745) |
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Net
Balance Remaining in EFSF |
$0 |
$18,264,890 |
$63,445,789 |
$67,144,497 |
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*
Reflects August 1, 2004 effective date and excludes sales affected by LD 1919
Part V. |
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Conflicts with LD 1919 - 2004-2005 Supplemental
Budget Bill |
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The
estimates included in this fiscal note reflect the impact of the bill as
amended by this amendment and attempt to anticipate the interaction effects
of this bill as amended and LD 1919, the 2004-2005 Supplemental Budget Bill,
as amended by Committee Amendment "A". |
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The
additional sales tax revenue generated by the 1% increase is reduced as a
result of LD 1919 Part V, which changes the sales tax base by moving certain
taxable sales to a service provider tax.
If LD 1919 Part V is not enacted, the revenue that would accrue to the
Education Funding Stabilization Fund and the Disproportionate Tax Burden Fund
in this bill would be increased. |
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This
bill also does not reflect the deappropriation in fiscal year 2004-05 as a
result of the change of the treatment of the Maine Residents Property Tax
Program (or "circuit breaker" program) as reductions of individual
income tax revenue rather than a General Fund appropriation. If LD 1919 is not enacted, a
deappropriation from the Maine Residents Property Tax Program will be
required and the amount of the net change to General Fund revenue and the transfers
to the Disproportionate Tax Burden Fund will be increased. |
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The
General Purpose Aid for Local Schools statutory changes and language
establishing the fiscal year 2004-05 distribution to municipalities assume
that the additional $15 million provided in LD 1919 Part N is also
apprpropriated. If the amounts in LD
1919 are affected, the amounts included in this bill and the statutory and
other language establishing the distribution will need to be revised
accordingly. |
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