Sec. 1. 30-A MRSA §5681, sub-§5, as repealed and replaced by PL 1999, c. 731, Pt. U, §5, is amended to read:

5. Transfers to funds. On the last day of each month, beginning July 31, 2000, the Treasurer of State shall transfer to the Local Government Fund an amount equal to 5.1% 5.5% of the receipts from the taxes imposed under Title 36, Parts 3 and 8 and credited to the General Fund without any reduction. Any amounts transferred to the Local Government Fund in excess of the annual growth ceiling must be transferred to the Disproportionate Tax Burden Fund.

SUMMARY

Under current law governing state-municipal revenue sharing, the Treasurer of State is required to transfer to the Local Government Fund an amount equal to 5.1% of tax receipts collected in connection with income tax and sales and use taxes. This bill raises the percentage transferred to 5.5%.