Sec. 1. 30-A MRSA §5686 is enacted to read:

§5686.__Sales tax sharing

1.__Definitions.__As used in this section, unless the context otherwise indicates, the following terms have the following meanings.

A.__"Baseline amount" means the receipts from the tax imposed under Title 36, Part 3 in fiscal year 2000-01, after the amount transferred under section 5681.

B.__"Local share of sales and use tax" means 10% of the amount by which receipts for a fiscal year from the tax imposed under Title 36, Part 3, after the amount transferred under section 5681, exceed the baseline amount.

2.__Fund established.__There is established the Sales Tax Sharing Fund for the purpose of returning a portion of sales tax revenues to the municipalities where those taxes were collected.

3.__Transfer.__The Treasurer of State shall transfer to the local share of sales and use tax for the previous fiscal year to the Sales Tax Sharing Fund on September 1st annually beginning in 2002.

4.__Identification.__By the September 1st annually, the State Tax Assessor shall identify the proportion of sales tax revenue collected from each municipality in the preceding fiscal year and provide those proportions to the Treasurer of State.

5.__Distribution.__The Treasurer of State shall distribute the balance in the Sales Tax Sharing Fund by September 25th annually to municipalities based on the proportion of collections provided by the State Tax Assessor under subsection 4.

6.__Plantations and unorganized territory.__For purposes of this section, the following must be treated as if they were municipalities:

A.__Plantations;

B.__The unorganized territory tax district; and

C.__The Indian territories of the Passamaquoddy Tribe and the Penobscot Nation.