HP0569, LD 762, item 1, An Act To Provide Equitable Revenue-sharing Distribution

An Act To Provide Equitable Revenue-sharing Distribution

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 30-A MRSA §5681, sub-§4-B, as enacted by PL 1999, c. 731, Pt. U, §4, is amended to read:

4-B. Distribution of Disproportionate Tax Burden Fund. The Treasurer of State shall transfer the balance in the Disproportionate Tax Burden Fund on the 20th day of each month. Money in the Disproportionate Tax Burden Fund must be distributed to each municipality defined as a service center community pursuant to section 4301, subsection 14-A as of January 1st of the previous fiscal year in proportion to the product of the population of the municipality multiplied by the disproportionate tax burden of the municipality.

Sec. 2. 30-A MRSA §5681, sub-§5, as amended by PL 2009, c. 213, Pt. S, §4 and affected by §16, is further amended to read:

5. Transfers to funds. No later than the 10th day of each month, the State Controller shall transfer to the Local Government Fund 5% of the receipts during the previous month from the taxes imposed under Title 36, Parts 3 and 8, and Title 36, section 2552, subsection 1, paragraphs A to F and L, and credited to the General Fund without any reduction, except that the postage, state cost allocation program and programming costs of administering state-municipal revenue sharing may be paid by the Local Government Fund. A percentage share of the amounts transferred to the Local Government Fund each month must be transferred to the Disproportionate Tax Burden Fund and distributed pursuant to subsection 4-B as follows:

C. For months beginning on or after July 1, 2009 but before July 1, 2010, 15%;

D. For months beginning on or after July 1, 2010 but before July 1, 2011, 16%;

E. For months beginning on or after July 1, 2011 but before July 1, 2012 October 1, 2011, 17%; and

E-1. For months beginning on or after October 1, 2011, 11%.

F. For months beginning on or after July 1, 2012 but before July 1, 2013, 18%;

G. For months beginning on or after July 1, 2013 but before July 1, 2014, 19%; and

H. For months beginning on or after July 1, 2014, 20%.

summary

This bill changes the method for distributing the money in the Disproportionate Tax Burden Fund, known as "Rev II," beginning October 1, 2011 and increases funding to so-called "Rev I" municipalities. Currently, Rev II funds are distributed to each municipality with a property tax mill rate over 10 mills in proportion to the disproportionate tax burden. Under this bill, Rev II funds will be distributed only to those municipalities with a property tax mill rate over 10 mills that are designated as service center communities, which by definition include census designated places. Beginning October 1, 2011, the bill reduces the amount transferred from the Local Government Fund to the Disproportionate Tax Burden Fund to 11% each year. This will increase the total amount of funding going to Rev I municipalities.

HP0569 LD 762	First Regular Session - 125th Maine Legislature		LR 316 Item 1
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