121st Maine Legislature
		Office of Fiscal and Program Review
		LD 16
		An Act to Increase the Income Tax Deduction on Private, Public and Military Pensions from $6,000 to $10,000
		LR 0417(01)
		Fiscal Note for Original Bill
		Sponsor: Rep Davis
		Committee: Taxation
		Fiscal Note Required: Yes
Fiscal Note
					Projections	Projections
			2003-04	2004-05	2005-06	2006-07
Net Cost (Savings)
	General Fund		$2,978,237	$7,508,918	$7,586,465	$7,708,188
Revenue
	General Fund		($2,978,237)	($7,508,918)	($7,586,465)	($7,708,188)
	Other Special Revenue Funds		($163,363)	($411,882)	($416,135)	($422,812)
Fiscal Detail and Notes
	This bill increases the income tax deduction for income received from public, private and military pensions.  This change will reduce income tax collections by an estimated $3,141,600 in fiscal year 2003-04 and $7,920,800 in fiscal year 2004-05.  The reduction of these tax collections will decrease the amounts transferred to the Local Government Fund for state-municipal revenue sharing in those years by $163,363 and $411,882.  The resulting net reduction of General Fund revenue is estimated to be $2,978,237 in fiscal year 2003-04 and $7,508,918 in fiscal year 2004-05, based on tax years beginning on or after January 1, 2004.