121st Maine Legislature
		Office of Fiscal and Program Review
		LD 601
		An Act To Encourage Earlier Tax Refunds
		LR 0705(01)
		Fiscal Note for Original Bill
		Sponsor: Sen. Nass of York
		Committee: Taxation
		Fiscal Note Required: Yes
Fiscal Note
					Projections	Projections
		2002-03	2003-04	2004-05	2005-06	2006-07
Net Cost (Savings):
	General Fund	$81,263	$185,393	$183,640	$190,985	$198,625
Appropriations/Allocations
	General Fund	$0	$5,000	$0	$0	$0
Revenue
	General Fund  - Individual	($70,119)	($155,655)	($158,457)	($164,795)	($171,387)
	General Fund  - Corporate	($11,144)	($24,738)	($25,183)	($26,190)	($27,238)
	Other Spec Rev Fds - Ind	($3,768)	($8,538)	($8,692)	($9,039)	($9,401)
	Other Spec Rev Fds - Corp	($599)	($1,357)	($1,381)	($1,437)	($1,494)
Fiscal Detail and Notes
	Shortening the time period for the state to make income tax refunds will increase the amount of interest paid, reducing income tax collections by an estimated $85,630 in fiscal year 2002-03, $190,288 in fiscal year 2003-04 and $193,713 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 $4,367, $9,985 and $10,073.  The resulting net reduction of General Fund revenue is estimated to be $81,263 in fiscal year 2002-03, $180,393 in fiscal year 2003-04 and $183,640 in fiscal year 2004-05.  Maine Revenue Services will also require a General Fund appropriation of $5,000 for the related administrative costs.