121st Maine Legislature
		Office of Fiscal and Program Review
		LD 587
		An Act to Repeal the Sales Tax on All Over-the-counter Medications
		LR 0997(01)
		Fiscal Note for Original Bill
		Sponsor: Sen. Lemont of York
		Committee: Taxation
		Fiscal Note Required: Yes
Fiscal Note
					Projections	Projections
			2003-04	2004-05	2005-06	2006-07
Net Cost (Savings):
	General Fund		$12,437,523	$17,846,100	$18,282,180	$18,724,896
Revenue
	General Fund		($12,437,523)	($17,846,100)	($18,282,180)	($18,724,896)
	Other Special Revenue Funds		($682,227)	($978,900)	($1,002,820)	($1,027,104)
Fiscal Detail and Notes
	This bill expands the sales tax exemption to include over-the-counter medicines.  This change will reduce sales and use tax collections by an estimated $13,119,750 in fiscal year 2003-04 and $18,825,000 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 $682,227 and $978,900.  The resulting net reduction of General Fund revenue is estimated to be $12,437,523 in fiscal year 2003-04 and $17,846,100 in fiscal year 2004-05, based on an effective date of October 1, 2003.