121st Maine Legislature
		Office of Fiscal and Program Review
		LD 256
		An Act to Establish and Permit Medical Savings Accounts
		LR 1518(01)
		Fiscal Note for Original Bill
		Sponsor: Rep. Cressey
		Committee: Taxation
		Fiscal Note Required: Yes
Fiscal Note
					Projections	Projections
			2003-04	2004-05	2005-06	2006-07
Net Cost (Savings):
	General Fund		$2,124,456	$5,213,165	$5,610,983	$5,965,056
Appropriations/Allocations
	General Fund		$18,000	$58,167	$106,427	$109,087
Revenue
	General Fund  - Individual		($1,867,133)	($4,606,178)	($4,916,770)	($5,226,450)
	General Fund  - Corporate		($239,323)	($548,820)	($587,786)	($629,519)
	Other Special Revenue Funds - Income		($102,417)	($252,660)	($269,696)	($286,683)
	Other Special Revenue Funds - Corporate		($13,127)	($30,104)	($32,241)	($34,531)
Fiscal Detail and Notes
	This bill exempts contributions to, and interest earned on, qualified medical savings accounts from the income tax.  This change will reduce income tax collections by an estimated $2,222,000 in fiscal year 2003-04 and $5,437,762 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 $115,544 and $282,764.  The resulting net reduction of General Fund revenue is estimated to be $2,106,456 in fiscal year 2003-04 and $5,154,998 in fiscal year 2004-05, based on tax years beginning on or after January 1, 2004.  Maine Revenue Services will also require General Fund appropriations of $18,000 in fiscal year 2003-04 and $58,167 in fiscal year 2004-05 for the administrative expenses related to this exemption.