2.__Transfer.__At the close of each fiscal year, the State Controller shall identify the amount of General Fund unappropriated surplus and make the following transfers:

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

B.__Twenty percent of the unappropriated surplus must be transferred to the Maine Budget Stabilization Fund established in section 1521.

3.__Notification.__By September 15th annually, the State Controller shall notify the Legislature and the State Tax Assessor 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 $25,000,000, the Legislature shall, by October 15th, enact legislation to provide for the refund to taxpayers of amounts in the fund.__Refunds may take the form only of temporary or permanent broad-based tax credits, rebates or rate reductions.

5.__Refund in case of legislative inaction.__If the Legislature does not enact legislation by October 15th to provide refunds pursuant to subsection 4, then the State Controller shall, by October 30th, notify the State Tax Assessor of the amount in the fund.__The State Tax Assessor shall calculate a one-time bonus personal exemption refund.__The amount of the personal exemption refund must be calculated by dividing the amount in the fund identified by the State Controller under subsection 3 by the number of personal exemptions claimed on income tax returns filed for tax years beginning in the previous calendar year and rounded down to the nearest $5 increment.__The State Tax Assessor shall issue a refund by November 30th to a taxpayer who filed an income tax return by April 15th of the same calendar year based on the number of personal exemptions claimed on the taxpayer's return without regard to the taxpayer's tax liability for the year.

§1996.__Transfers and refund of unallocated Highway Fund surplus

1.__Fund created.__The Highway Fund Reserve Fund, referred to in this section as "the fund," is created for the purposes set forth in this chapter.