| 122nd MAINE LEGISLATURE | |||||||||
| LD 1102 | LR 0854(01) | ||||||||
| An Act To Connect the BETR Program with Job Retention | |||||||||
| Fiscal Note for Original Bill | |||||||||
| Sponsor: Rep. Clark of Millinocket | |||||||||
| Committee: Taxation | |||||||||
| Fiscal Note Required: Yes | |||||||||
| Fiscal Note | |||||||||
| Undetermined revenue increase - General Fund | |||||||||
| Current biennium cost increase - General Fund | |||||||||
| Fiscal Detail and Notes | |||||||||
| This bill is expected to increase General Fund revenue by a significant amount as a result of the limitation on Business Equipment Tax Reimbursement (BETR) program benefits. The exact amount by fiscal year can not be determined at this time and will depend on actual job losses and the timing of rebate payments. The current economic forecast projects additional job losses in manufacturing and reimbursement for property used in manufacturing represents over 80% of BETR benefit costs. Based on these two factors, the provisions contained in this bill could potentially reduce the cost of BETR benefits by well over 50%. 50% of the projected General Fund cost of program benefits in fiscal year 2007-08 is approximately $37,000,000. Maine Revenue Services will require a General Fund appropriation of $87,335 in fiscal year 2006-07 for the administrative costs associated with these changes, including funds for one Tax Examiner position to perform compliance reviews. | |||||||||