121st Maine Legislature
		Office of Fiscal and Program Review
		LD 1207
		An Act To Amend the Sales and Use Tax Law Regarding the Food Service and Lodging Industries
		LR 0440(01)
		Fiscal Note for Original Bill
		Sponsor: Rep. Cowger of Hallowell
		Committee: Taxation
		Fiscal Note Required: Yes
Fiscal Note
					Projections	Projections
			2003-04	2004-05	2005-06	2006-07
Net Cost (Savings)
	General Fund		$14,556,068	$20,625,566	$22,011,612	$23,478,168
Revenue
	General Fund		($14,556,068)	($20,625,566)	($22,011,612)	($23,478,168)
	Other Special Revenue Funds		($782,254)	($1,108,434)	($1,207,388)	($1,287,832)
Fiscal Detail and Notes
	This bill expands the sales tax exemption to property used in production in the lodging and food service industries.  This change will reduce sales and use tax collections by an estimated $15,338,322 in fiscal year 2003-04 and $21,734,000 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 $782,254 and $1,108,434.  The resulting net reduction of General Fund revenue is estimated to be $14,556,068 in fiscal year 2003-04 and $20,625,566 in fiscal year 2004-05, based on an effective date of October 1, 2003.