132nd MAINE LEGISLATURE
		LD 1505		LR 465(01)
	An Act to Phase out the Sales and Use Tax
	Preliminary Fiscal Impact Statement for Original Bill
	Sponsor: Rep. Rudnicki of Fairfield
	Committee: Taxation
	Fiscal Note Required: Yes
Preliminary Fiscal Impact Statement
			FY 2025-26	FY 2026-27	Projections  FY 2027-28	Projections  FY 2028-29
Net Cost (Savings)
	General Fund		$86,809,998	$185,354,607	$276,180,561	$379,650,890
Appropriations/Allocations
	General Fund		$5,300	$0	$0	$0
Revenue
	General Fund		($86,804,698)	($185,354,607)	($276,180,561)	($379,650,890)
	Other Special Revenue Funds		($3,630,866)	($10,680,128)	($16,462,014)	($23,972,900)
Fiscal Detail and Notes
	This bill includes a revenue decrease to the General Fund of $86,804,698 in fiscal year 2025-26 and $185,354,607 in fiscal year 2026-27 by phasing out all sales and use tax rates by 1/2 of a percentage point every two years beginning January 1, 2026 until the rates are 0%. This phaseout will decrease revenue to (1) the Local Government Fund by $3,563,631 in fiscal year 2025-26 and $9,782,323 in fiscal year 2026-27, (2) the Multimodal Transportation Fund by $210,213 in fiscal year 2026-27, (3) the Tourism Marketing Promotion Fund by $507,236 in fiscal year 2026-27 and (4) the Adult Use Cannabis Public Health and Safety and Municipal Opt-in Fund by $67,235 in fiscal year 2025-26 and $180,356 in fiscal year 2026-27. Additionally, the Bureau of Revenue Services within the Department of Administrative and Financial Services will require a one-time General Fund appropriation of $5,300 in fiscal year 2025-26 to fund computer programming costs associated with the provisions of this bill.