121st Maine Legislature
		Office of Fiscal and Program Review
		LD 726
		An Act to Eliminate the Maine Sales Tax on United States Flags
		LR 0017(01)
		Fiscal Note for Original Bill
		Sponsor: Rep. Collins
		Committee: Taxation
		Fiscal Note Required: Yes
Fiscal Note
					Projections	Projections
			2003-04	2004-05	2005-06	2006-07
Net Cost (Savings):
	General Fund		$278,364	$397,662	$405,616	$413,728
Revenue
	General Fund		($278,364)	($397,662)	($405,616)	($413,728)
	Other Special Revenue Funds		($15,269)	($21,813)	($22,249)	($22,694)
Fiscal Detail and Notes
	This bill exempts the sale of a United States flag from the sales tax.  This change will reduce sales and use tax collections by an estimated $293,633 in fiscal year 2003-04 and $419,475 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 $15,269 and $21,813.  The resulting net reduction of General Fund revenue is estimated to be $278,364 in fiscal year 2003-04 and $397,662 in fiscal year 2004-05, based on an effective date of October 1, 2003.