121st Maine Legislature
		Office of Fiscal and Program Review
		LD 1247
		An Act To Lower the Tax on Prepared Food from 7% to 5%
		LR 1084(01)
		Fiscal Note for Original Bill
		Sponsor: Rep. Snowe-Mello of Poland
		Committee: Taxation
		Fiscal Note Required: Yes
Fiscal Note
					Projections	Projections
			2003-04	2004-05	2005-06	2006-07
Net Cost (Savings)
	General Fund		$22,347,464	$32,382,015	$33,554,780	$34,802,405
Revenue
	General Fund		($22,347,464)	($32,382,015)	($33,554,780)	($34,802,405)
	Other Special Revenue Funds		($1,200,970)	($2,856,431)	($3,457,953)	($3,586,732)
Fiscal Detail and Notes
	Reducing the sales and use tax on prepared foods from 7% to 5% is expected to reduce General Fund revenue by $22,347,464 in fiscal year 2003-04 and $32,382,015 in fiscal year 2004-05.  This change will also reduce transfers to the Local Government Fund for state-municipal revenue sharing and transfers to the Tourism Marketing Promotion Fund.