Resolve, Directing the Department of Administrative and Financial Services, Bureau of Revenue Services To Develop a Pilot Project for a Tax Simulation Model for State Dynamic Fiscal Analysis

Sec. 1. Undertake pilot project to develop and evaluate a tax simulation model for state dynamic fiscal analysis. Resolved: That the Department of Administrative and Financial Services, Bureau of Revenue Services, referred to in this resolve as "the bureau," shall undertake a pilot project to develop and evaluate a tax simulation model for state dynamic fiscal analysis, which is analysis to estimate the effect a change in the tax laws would have on state revenue as well as the fiscal impact of the changes in taxpayer behavior and overall economic activity that may occur due to the tax law change. The bureau may enter into a memorandum of understanding with the University of Maine to develop and evaluate the pilot project model for state dynamic fiscal analysis. The bureau may disclose information otherwise protected under the Maine Revised Statutes, Title 36, section 191 to specific University of Maine staff members and students identified in the memorandum of understanding for the purpose of developing and evaluating the pilot project model for state dynamic fiscal analysis; and be it further

Sec. 2. Recommendations and report. Resolved: That, no later than November 15, 2012, the bureau and the Office of Fiscal and Program Review shall each evaluate the completed pilot project model and submit a joint report that includes the findings of the evaluation and provides recommendations to the Joint Standing Committee on Taxation. The report must include justification for the recommendations of continued use or development of the pilot project model, or of acquisition of other existing models for state dynamic fiscal analysis, and the estimated costs, timeline for implementation and description of the functional capabilities of any such model and of its development or acquisition. The report may include suggested legislation to implement the recommendations.