| 122nd MAINE LEGISLATURE | |||||||||
| LD 1102 | LR 0854(03) | ||||||||
| An Act To Connect the BETR Program with Job Retention | |||||||||
| Fiscal Note for Bill as Amended by Committee Amendment " " | |||||||||
| Committee: Taxation | |||||||||
| Fiscal Note Required: Yes | |||||||||
| Fiscal Note | |||||||||
| Undetermined future biennium revenue increase - General Fund | |||||||||
| Undetermined current biennium cost increase - General Fund | |||||||||
| Projections | Projections | ||||||||
| 2005-06 | 2006-07 | 2007-08 | 2008-09 | ||||||
| Net Cost (Savings) | |||||||||
| General Fund | $0 | $20,000 | $0 | $0 | |||||
| Appropriations/Allocations | |||||||||
| General Fund | $0 | $20,000 | $0 | $0 | |||||
| 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% beginning in fiscal year 2009-2010. This bill includes a General Fund appropriation of $20,000 in fiscal year 2006-07 for Maine Revenue Services for the administrative costs associated with these changes, including funds for computer programming. | |||||||||
| The Department of Labor indicates it will require ongoing General Fund appropriations beginning in fiscal year 2006-07 for the programming and ongoing reporting costs associated with identifying persons who have reduced their workforce. The amount can not be determined at this time but is expected to be several hundred thousand dollars. | |||||||||