SP0325, LD 934, item 1, An Act To Create Transparency in Maine's Economic Development Spending

An Act To Create Transparency in Maine's Economic Development Spending

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

Sec. 1. 36 MRSA §191, sub-§2, ¶¶XX and YY, as enacted by PL 2013, c. 331, Pt. B, §5, are amended to read:

XX. The disclosure of information by the assessor to the board, except that such disclosure is limited to information that is pertinent to an appeal or other action or proceeding before the board; and

YY. The inspection and disclosure of information by the board to the extent necessary to conduct appeals procedures pursuant to this Title and issue a decision on an appeal to the parties. The board may make available to the public redacted decisions that do not disclose the identity of a taxpayer or any information made confidential by state or federal statute . ; and

Sec. 2. 36 MRSA §191, sub-§2, ¶ZZ is enacted to read:

ZZ. For tax years beginning on or after January 1, 2015, the disclosure of information regarding beneficiaries of economic development tax expenditures under section 199-E.

Sec. 3. 36 MRSA §199-E is enacted to read:

§ 199-E. Economic development incentive transparency

1. Economic development spending. By September 1st annually, the Department of Economic and Community Development shall provide to the Office of Tax Policy within the bureau a report identifying the amounts of state spending under the jurisdiction of the Department of Economic and Community Development in the previous calendar year. The report must identify amounts spent by each program under the jurisdiction of the department, the value of funds or services provided to each business under each program and the administrative costs of each program. Amounts provided to businesses receiving less than $5,000 during the fiscal year may be reported in the aggregate, and the report must specify the number of businesses included in the aggregate.

2. Economic development tax expenditures. By September 1st annually, the bureau shall identify the actual revenue loss during the previous fiscal year for each economic development tax expenditure and each business receiving $5,000 or more from economic development tax expenditures during the fiscal year. Amounts received by businesses receiving less than $5,000 during the fiscal year may be identified in the aggregate, and the report must specify the number of businesses included in the aggregate.

For the purposes of this section, "economic development tax expenditure" means a tax expenditure with a major purpose of providing an incentive for economic or job growth in the State. The assessor shall adopt rules identifying the specific provisions of law that meet the definition of "economic development tax expenditure." Rules adopted under this subsection are major substantive rules as defined in Title 5, chapter 375, subchapter 2-A.

3. Report. The Office of Tax Policy within the bureau shall submit a report to the Legislature by November 1st annually. The report must contain the information identified under subsections 1 and 2. The office shall at the same time post the information on the office's publicly accessible website in the form of a spreadsheet that may be downloaded by members of the public.

summary

This bill requires the disclosure of the names of businesses benefiting from economic development spending and tax expenditures in excess of $5,000 annually. The Department of Economic and Community Development is required to submit information regarding reportable economic development spending to the Department of Administrative and Financial Services, Bureau of Revenue Services, Office of Tax Policy annually. The Bureau of Revenue Services is required to identify businesses receiving $5,000 or more annually from economic development tax expenditures. The Office of Tax Policy is required to submit a report annually to the Legislature regarding economic development spending and tax expenditures and make the information available on its publicly accessible website.

SP0325 LD 934	Session - 127th Maine Legislature		LR 1751 Item 1
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