Sec. 1. 36 MRSA c. 227 is enacted to read:

CHAPTER 227

STREAMLINED SALES AND USE TAX AGREEMENT

§2201.__Adoption of agreement

The State hereby enters into and adopts the Streamlined Sales and Use Tax Agreement as adopted by the member states of the Streamlined Sales Tax Project November 12, 2002 and amended through November 16, 2004.

Sec. 2. Report and legislation regarding adoption of the Streamlined Sales and Use Tax Agreement. The Department of Administrative and Financial Services, Bureau of Revenue Services shall prepare for submission to the Second Regular Session of the 122nd Legislature a report that:

1. Identifies any changes to the Maine Revised Statutes necessitated by the adoption of the Streamlined Sales and Use Tax Agreement pursuant to the Maine Revised Statutes, Title 36, chapter 227;

2. Identifies the impact of each change made pursuant to subsection 1 on sales and use tax revenue; and

3. Identifies and explains any fiscal or policy issues associated with the adoption of the Streamlined Sales and Use Tax Agreement.

The bureau shall submit its report, along with necessary implementing legislation, no later that January 15, 2006.

Sec. 3. Effective date. That section of this Act that enacts the Maine Revised Statutes, Title 36, chapter 227 takes effect July 1, 2006.

SUMMARY

This bill adopts the Streamlined Sales and Use Tax Agreement and requires the Department of Administrative and Financial Services, Bureau of Revenue Services to report to the Second Regular Session of the 122nd Legislature regarding the effect of adopting the agreement and the legislation necessary to bring the State into compliance with the agreement.