123rd MAINE LEGISLATURE
LD      LR 2657(01)
An Act To Cut Taxes on Maine Residents by over $125,000,000
Fiscal Note for Original Bill
Committee: Taxation
Fiscal Note Required: Yes
             
Fiscal Note
2007-08 2008-09 Projections 2009-10 Projections 2010-11
Net Cost (Savings)
General Fund ($346,551) ($72,188) $21,351,495 $26,712,070
Appropriations/Allocations
General Fund $1,095,164 $33,203,556 $33,430,184 $34,039,339
Other Special Revenue Funds $0 $1,001,493 $3,101,329 $3,078,489
Revenue
General Fund $1,441,715 $33,275,744 $12,078,689 $7,327,269
Other Special Revenue Funds ($1,257,361) $84,519 $2,188,483 $2,123,961
Fiscal Detail and Notes
Gross Revenue Impact 2007-08 2008-09 Projections 2009-10 Projections 2010-11
Individual Income Tax
Flat Rate at 6%, Household Credit ($85,392,300) ($193,225,500) ($185,952,600) ($195,777,200)
Section 179 Conformity ($2,066,400) ($4,765,600) ($1,959,300) $2,042,900
Transfer, Tax Relief for Maine Residents $0 $0 ($8,036,691) ($7,115,273)
Corporate Income Tax
Flat Rate at 8.93% $1,020,000 $6,822,500 $6,980,000 $7,166,500
Transfer, Tax Relief for Maine Residents $0 $0 ($1,250,334) ($3,241,103)
Sales and Use Tax
Expand Base, Repeal Exemptions $41,937,440 $117,846,793 $121,588,905 $125,725,359
Meals and Lodging to 8% $8,227,200 $26,890,000 $28,110,000 $29,340,000
Expanded Tax on Prepared Foods @ 8% $11,116,800 $35,400,000 $35,890,000 $36,470,000
Transfer, Tax Relief for Maine Residents $0 $0 ($6,864,505) ($7,617,605)
Transfer, Local Tax Increment $0 $0 ($4,576,337) ($9,654,740)
2007-08 2008-09 Projections 2009-10 Projections 2010-11
Real Estate Transfer Tax
Graduated Tax Based on Value $23,450,000 $36,820,000 $40,686,100 $45,446,374
Beer and Wine
Double Excise Tax (except for small manufacturers of malt liquor) $8,291,614 $10,364,518 $10,364,518 $10,364,518
Property Tax and Rent Refund Program
Expand Circuitbreaker Program $0 ($7,315,000) ($22,570,000) ($23,698,500)
Section 179 Reserve Fund Transfers ($6,400,000) $4,522,554 $1,857,416 $0
$184,354 $33,360,265 $14,267,172 $9,451,230
General Fund Appropriation Summary
Homestead Property Tax Reimbursement $0 $31,641,000 $31,641,000 $31,641,000
Elderly Tax Deferal Porgram $0 $492,000 $1,060,875 $1,647,008
Administrative Costs $1,095,164 $1,070,556 $728,309 $751,331
$1,095,164 $33,203,556 $33,430,184 $34,039,339
Other Special Revenue Fund Summary
Local Government Fund ($1,283,021) ($935,688) ($931,476) ($974,009)
Tourism Marketing Promotion Fund $0 $1,001,493 $3,101,329 $3,078,489
Fund for the Efficient Delivery of Local and Regional Services $25,660 $18,714 $18,630 $19,480