Beginning July 1, 2002, the bill would permit retailers to retain 1% of sales tax collections up to $100 per quarter. This right would be forfeited if the retailer does not file a timely return or remit the proper amounts due.

These changes in the tax system would take effect if alternative revenue sources are identified and enacted by June 1, 2002 as follows. A commission would be appointed and required to report to the Legislature by December 15, 2001 with recommended expansions to sales and use tax and gross receipts and franchise and excise taxes sufficient to compensate for the revenue loss resulting from the other changes in this bill. The commission would be guided by the following criteria: finding new revenue to broaden the tax base while controlling rates, shifting the tax burden from income to consumption, reducing volatility, minimizing regressive impacts on Maine's low-income population, avoiding losses from the exporting of taxable sales, allocating appropriate portions of the burden to out-of-state payers, conserving energy and counteracting sprawl. The commission would be comprised of the State Tax Assessor and the Director of the State Planning Office or their designees and 5 persons with backgrounds in economics, economic public policy or public accountancy, one appointed by the Governor, 2 appointed jointly by the President and the President Pro Tem of the Senate, and 2 appointed by the Speaker of the House of Representatives.