A.__Eighty percent of the unallocated surplus must be transferred to the fund; and

B.__Twenty percent of the unallocated surplus must be transferred to the Maine Highway Budget Stabilization Fund established in section 1522.

3.__Notification.__By September 15th annually, the State Controller shall notify the Legislature of the amount in the fund as a result of the transfers required by subsection 2.

4.__Refund through legislative action.__If the amount in the fund exceeds 10% of Highway Fund expenditures for the previous fiscal year, the State Tax Assessor shall calculate, based on the amount in the fund, a proportional reduction in the taxes on motor fuels under Part 5 to become effective the following January 1st and remain in effect for one calendar year.

§1997.__Revenues of quasi-governmental agencies and Other Special

Revenue funds accounts

By September 15th annually, each quasi-governmental agency or state agency that manages an Other Special Revenue funds account shall submit an annual report to the Legislature identifying revenues received in the preceding fiscal year that exceed the expenditure limitation established in section 1994 and any other uncommitted revenues received during the previous fiscal year and proposing a plan for refunding the amount identified that exceeds 10% of the previous fiscal year's expenditure.

§1998.__Refund of excess local revenues

If a local district receives revenues in a fiscal year in excess of the expenditure limitation under section 1994, the local district must use the amount of the unprotected excess to reduce the amount of property tax assessed in the succeeding year.__For purposes of this section, "unprotected excess" means the amount in excess of an amount set aside in a reserve account for unanticipated contingencies, which may not exceed 10% of the previous fiscal year's expenditure.

§1999.__Emergency taxes

1.__Emergency taxes permitted; conditions.__The State or a local district may impose emergency taxes only in accordance with this section: