131st MAINE LEGISLATURE
		LD 1258		LR 1789(02)
	An Act to Increase the Personal Property Tax Exemption for Farm Machinery
	Fiscal Note for Bill as Amended by Committee Amendment " "
	Committee: Taxation
	Fiscal Note Required: Yes
Fiscal Note
State Mandate - Funded
			FY 2023-24	FY 2024-25	Projections  FY 2025-26	Projections  FY 2026-27
Net Cost (Savings)
	General Fund		$0	$3,750	$153,750	$153,750
Appropriations/Allocations
	General Fund		$0	$3,750	$153,750	$153,750
State Mandates
	Required Activity				Unit Affected	Local Cost
	Requires municipalities to undertake administrative activities to implement an increase in the personal property tax exemption for farm machinery, including annual processing and verifying of applications.				Municipality	4167 annually     = 100%
	The required local activities in this bill may represent a state mandate pursuant to the Constitution of Maine. If the bill does require a local unit of government to expand or modify its activities so as to necessitate additional expenditures from local revenue, the state mandate provisions of the Constitution of Maine require either: (1) General Fund appropriations be provided to fund at least 90% of any additional necessitated local costs of the mandate; or (2) a Mandate Preamble be added to the bill and two-thirds of the members of each House vote to exempt the mandate from the funding requirement. If the bill does represent a state mandate and neither one of these actions occurs, the local units of government will not be required to implement the mandated activities.
Fiscal Detail and Notes
	This bill increases the property tax exemption for farm machinery beginning April 1, 2024 and requires the State to reimburse municipalities for 90% of the state-mandated costs and 50% of the property tax revenue loss due to the increased exemption. The bill includes an ongoing General Fund appropriation of $3,750 per year beginning in fiscal year 2024-25 to reimburse municipalities for 90% of the estimated $4,167 in state-mandated costs. Beginning in fiscal year 2025-26, an additional ongoing appropriation of $150,000 per year will be required to reimburse municipalities for 50% of the property tax revenue loss.