121st Maine Legislature
Office of Fiscal and Program Review
LD 1141
An Act to Provide Property Tax Relief for Maine Residents and Businesses and Implement Comprehensive Tax Reform
LR 0392(08)
Fiscal Note for Senate Amendment " "to Senate Amendment " "
Sponsor: Sen. Stanley
Fiscal Note Required: Yes
   
             
Fiscal Note
Referendum Costs - June 2004
Fiscal Detail and Notes
Referendum Costs Month/Year Election Type Question Type Question Length
Jun-04 Special Referendum Standard
The Secretary of State's budget currently includes sufficient funds for a referendum question at the special election in June 2004.
If approved by the voters in June 2004, this bill will have the following fiscal impact:
Projections Projections
2003-04 2004-05 2005-06 2006-07
General Fund Appropriations
Increase homestead exemption to $11,000, no tier $26,916,336 $27,399,700 $27,902,963
Mainely Small Business Capital Fund (FAME) $6,000,000 $6,000,000 $6,000,000
Tree Growth Reimbursement $100,000 $102,000 $104,040
Administrative costs   $374,683 $334,385 $351,104
   Total General Fund Appropriations $0 $33,391,019 $33,836,085 $34,358,107
General Fund Revenue
Homestead Property Tax Cap Program ($25,291,220) ($26,248,785) ($28,089,585)
Small Business Job Creation Tax Refund ($3,796,000) ($3,792,000) ($3,792,000)
Individual income tax - property tax reimbursement   $293,578 $330,759 $331,952
   Total General Fund Revenue $0 ($28,793,642) ($29,710,026) ($31,549,633)
Total General Fund Costs (Savings) $62,184,661 $63,546,111 $65,907,740
Transfers to Offset General Fund Costs ($62,184,661) ($63,546,111) ($65,907,740)
   Net Costs to General Fund $0 $0 $0 $0
Projections Projections
2003-04 2004-05 2005-06 2006-07
Disproportionate Tax Burden Fund - Increases (Decreases) to Balance
Sales tax to 6% * $5,892,504 $6,965,800 $7,298,224
Homestead Property Tax Cap ($1,359,170) ($1,439,807) ($1,540,779)
Small Business Job Creation Tax Refund ($204,000) ($208,000) ($208,000)
Individual income tax - property tax reimbursement   $15,777 $18,143 $18,208
   Net Increase (Decrease) $0 $4,345,111 $5,336,136 $5,567,653
Education Funding Stabilization Fund (EFSF) - Increases (Decreases) to Balance
Sales tax to 6% - Net * $109,646,796 $126,991,900 $133,052,237
Transfers to General Fund ($62,184,661) ($63,546,111) ($65,907,740)
Allocation to General Purpose Aid for Local Schools ($29,163,745)
  Net Balance Remaining in EFSF $0 $18,298,390 $63,445,789 $67,144,497
      * Reflects August 1, 2004 effective date and excludes sales affected by LD 1919 Part V.
Conflicts with LD 1919 - 2004-2005 Supplemental Budget Bill
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".
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.
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.
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.