121st Maine Legislature
		Office of Fiscal and Program Review
		LD 1394
		An Act to Modernize the State's Tax System
		LR 1697(03)
		Fiscal Note for Bill as Amended by Committee Amendment " "
		Committee: Taxation
		Fiscal Note Required: Yes
Fiscal Note
					Projections	Projections
			2003-04	2004-05	2005-06	2006-07
Net Cost (Savings)
	General Fund		$0	($17,724,329)	($14,320,950)	$869,205
Appropriations/Allocations
	General Fund		$0	$66,010,438	$80,196,863	$97,805,343
Revenue
	General Fund		$0	$83,734,767	$94,517,813	$96,936,138
	Other Special Revenue Funds		$0	$4,499,972	$5,184,521	$5,317,172
State Mandate
	New or Expanded Activity				Unit Affected	Costs
	Administrative responsibilities for municipalities to revise the Homestead Property Tax Exemption				Municipality	$110,000
Fiscal Detail and Notes
	Repealing several sales tax exemptions beginning August 1, 2004 will generate approximately $88,235,000 in fiscal year 2004-05.  The General Fund cost of expanding the Maine Residents Property Tax Program to create the Homestead Tax Cap Program is estimated to be $65,600,000 in fiscal year 2004-05.  Additional General Fund appropriations will also be required beginning in fiscal year 2005-06 to eliminate the tiered portion of the Homestead Property Tax Exemption.  This bill provides $110,000 in fiscal year 2004-05 to reimburse local municipalities for 90% of the estimated local cost of changes to the homestead exemption program.  Maine Revenue Services will also require $300,438 in fiscal year 2004-05 for the administrative costs associated with these changes.
General Fund Detail			2003-04	2004-05	2005-06	2006-07
	Repeal several sales tax exemptions			$83,734,767	$94,517,813	$96,936,138
	Expand Maine Resident Property Tax Program			$65,600,000	$74,800,000	$92,400,000
	Restore $7,000 Homestead Exemption			$0	$5,259,475	$5,264,520
	Mandate Reimbursement - Homestead Exemption			$110,000	$0	$0
	Administrative Costs			$300,438	$137,388	$140,823