131st MAINE LEGISLATURE
		LD 1747		LR 1078(02)
	An Act to Return the Sales Tax Rate to 5 Percent
	Fiscal Note for Bill as Amended by Committee Amendment " "
	Committee: Taxation
	Fiscal Note Required: Yes
Fiscal Note
			FY 2023-24	FY 2024-25	Projections  FY 2025-26	Projections  FY 2026-27
Net Cost (Savings)
	General Fund		$45,000,200	$136,678,400	$145,297,750	$147,428,600
Appropriations/Allocations
	General Fund		$50,000	$0	$0	$0
Revenue
	General Fund		($44,950,200)	($136,678,400)	($145,297,750)	($147,428,600)
	Other Special Revenue Funds		($2,365,800)	($7,193,600)	($7,647,250)	($7,759,400)
Fiscal Detail and Notes
	Reducing the sales tax rate from 5.5% to 5.25% beginning October 1, 2023 and further reducing the rate to 5% beginning July 1, 2024 will decrease General Fund revenue by $44,950,200 in fiscal year 2023-24 and $136,678,400 in fiscal year 2024-25. It will also decrease Local Government Fund revenue by $2,365,800 in fiscal year 2023-24 and $7,193,600 in fiscal year 2024-25. Any revenues derived from sales on Passamaquoddy, Penobscot, or Maliseet tribal lands taxable at the 5.5% rate would also be impacted, resulting in small reductions in the Passamaquoddy, Penobscot, and Maliseet Sales Tax Funds. These fund distributions are not separately estimated. The bill includes a one-time General Fund appropriation to the Department of Administrative and Financial Services, Bureau of Revenue Services of $50,000 in fiscal year 2023-24 for computer programming costs associated with the changes to the sales tax.