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124th MAINE LEGISLATURE |
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LD 1088 |
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LR 1600(05) |
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An Act To
Modernize the Tax Laws and Provide over $75,000,000 to Residents of the State
in Tax Relief |
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Fiscal Note for
House Amendment " " to
Committee Amendment "A" |
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Sponsor: Rep. Chase of Wells |
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Fiscal Note Required: Yes |
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| Fiscal Note |
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2009-10 |
2010-11 |
Projections 2011-12 |
Projections 2012-13 |
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| Net Cost
(Savings) |
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General Fund |
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$8,166,927 |
($6,454,491) |
($5,148,136) |
$29,296,329 |
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| Appropriations/Allocations |
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General Fund |
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($523,073) |
($664,491) |
($448,136) |
($470,537) |
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Other Special Revenue Funds |
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$0 |
($740,000) |
($1,860,000) |
($1,850,000) |
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| Revenue |
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General Fund |
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($8,690,000) |
$5,790,000 |
$4,700,000 |
($4,680,000) |
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Other Special Revenue Funds |
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($350,000) |
($310,000) |
($1,510,000) |
($1,970,000) |
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| Transfers |
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General Fund |
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$0 |
$0 |
$0 |
($25,086,866) |
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| Fiscal Detail
and Notes |
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This amendment
eliminates all the income tax, sales tax and Real Estate Transfer Tax changes
proposed in the committee amendment.
It retains the Tax and Rent Refund Program changes. It also creates
the Tax Relief Fund for Maine Residents so that it will receive revenue in
excess of a certain calculated growth limitation factor. It is not until fiscal year 2012-13 that
the projected revenue growth rate will be sufficient to trigger the first
transfer, estimated to be $25,086,866, from the unappropriated surplus of the
General Fund to the Tax Relief Fund for Maine Residents. The State Tax Assessor will present
legislation annually to reduce the individual income tax burden utilizing the
money in the Tax Relief Fund. |
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| Detail of GF
Revenue Changes Eliminated |
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| Flat Tax Rate @
6.5% and various new credits |
$35,650,000 |
$94,130,000 |
$94,950,000 |
$89,540,000 |
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| Sales and Use
Tax |
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Meals and Lodging @ 8.5% |
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($13,318,867) |
($34,382,265) |
($35,243,073) |
($36,559,335) |
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Candy @ 8.5% |
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($1,413,600) |
($3,453,820) |
($3,427,809) |
($3,533,610) |
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Short-term auto rentals @ 12.5% 10/01/09 |
($627,000) |
($1,254,000) |
($1,282,500) |
($1,330,000) |
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Expands Sales and Use Tax base * |
($27,100,533) |
($46,059,915) |
($46,536,618) |
($48,457,055) |
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| Real Estate
Transfer Tax |
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| Graduated Tax
Based on Value > $500,000 |
($1,880,000) |
($3,190,000) |
($3,760,000) |
($4,340,000) |
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Total General Fund Revenue Change |
($8,690,000) |
$5,790,000
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$4,700,000
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($4,680,000) |
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