1. Smokeless tobacco. A tax is imposed on all smokeless tobacco, including chewing tobacco and snuff, at the rate of 62% of the wholesale price 78% of the wholesale price beginning October 1, 2005.

2. Other tobacco. A tax is imposed on cigars, pipe tobacco and other tobacco intended for smoking at the rate of 16% of the wholesale price 20% of the wholesale price beginning October 1, 2005.

Sec. AA-7. Appropriations and allocations. The following appropriations and allocations are made.

ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF

Maine Revenue Services 0002

Initiative: Provides one-time funds for the administrative costs associated with the increase in the cigarette and other tobacco taxes.

GENERAL FUND 2005-06 2006-07

All Other $79,000 $0

__________ __________

GENERAL FUND TOTAL $79,000

Sec. AA-8. Effective date. Those sections of this Part that amend the Maine Revised Statutes, Title 36, sections 4365 and 4366-A; that repeal Title 36, section 4365-E; and that enact Title 36, sections 4365-F and 4366-A, subsection 2, paragraph D take effect September 19, 2005. That section of this Part that amends Title 36, section 4403 takes effect October 1, 2005.

PART BB

Sec. BB-1. Transfer of funds. Notwithstanding any other provision of law, the Maine Municipal Bond Bank shall transfer $5,900,000 from the School Revolving Renovation Fund account representing audit recoveries from major school construction projects paid by General Fund appropriations to the General Fund undedicated revenue no later than October 31, 2005.

PART CC

Sec. CC-1. 20-A MRSA §6103, sub-§3-A is enacted to read: