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.