121st Maine Legislature
		Office of Fiscal and Program Review
		LD 1394
		An Act to Modernize the State's Tax System
		LR 1697(01)
		Fiscal Note for Original Bill
		Sponsor: Rep. Dudley
		Committee: Taxation
		Fiscal Note Required: Yes
Fiscal Note
					Projections	Projections
			2003-04	2004-05	2005-06	2006-07
Net Cost (Savings)
	General Fund		$0	$0	$0	$16,000,000
Appropriations/Allocations
	General Fund  - Me Res Prop Tax Prog		$0	$0	$0	$127,350,000
	General Fund  - Bus Equip Tax Reimb Prog		$0	$0	$0	($35,000,000)
	General Fund  - Administrative Costs		$0	$0	$0	not yet determined
	Other Special Revenue Funds - Local Gov Fd		$0	$0	$0	$95,217,000
	Other Special Revenue Funds - Tourism Fund		$0	$0	$0	$1,201,000
Revenue
	General Fund					$76,350,000
Fiscal Detail and Notes
	The table above represents an estimate of the fiscal year 2006-07 cost of the bill and assumes all of the provisions contained in the bill are fully phased-in.  Maine Revenue Services will also require additional General Fund appropriations to support the additional administrative costs associated with the changes in the bill.  Those costs can not be estimated at this time.
	This bill requires an annual review by the Joint Standing Committee on Taxation of the additional sales tax revenue collected, as well as the annual cost of reimbursing municipalities, with the first report by January 1, 2005.  Funding for interim committee meetings for FY 05 has been eliminated.  Assuming the Joint Standing Committee on Taxation meets a total of four times, the estimated cost is $6,500.  The Legislature will require an additional General Fund appropriation in FY 05 if this review is conducted during the interim between legislative sesions.  The actual amount will depend on the number of times the joint standing committee must meet to complete its work.