Sec. 3. Creation of small business tax assistance program. The Department of Economic and Community Development and the Department of Administrative and Financial Services, Maine Revenue Services jointly shall develop a program to assist small businesses with the payment of taxes incurred under the Maine Revised Statutes, Title 36. The program must be needs-based, be available only to small businesses and provide for a rebate of taxes paid by the small businesses. Funding for the program must come from the savings generated by eliminating the reimbursement of property taxes under the Business Equipment Tax Reimbursement program and a tax increment financing district agreement and limiting the amount and length of reimbursement pursuant to sections 1 and 2 of this Act.

The department and Maine Revenue Services shall report by December 15, 2005 to the Second Regular Session of the 122nd Legislature with their recommendations and necessary implementing legislation.

SUMMARY

This bill prohibits reimbursement of property taxes under the Business Equipment Tax Reimbursement program if the taxes also are reimbursed under a tax increment financing district agreement for property first placed into service on or after April 1, 2007. This bill also limits the reimbursement to 90% of the assessed taxes and reduces the number of years property is eligible for reimbursement from 12 years to 10 years. The savings generated by the elimination of this so-called "double-dip" must be used to fund a new program created jointly by the Department of Economic and Community Development and the Department of Administrative and Financial Services, Maine Revenue Services to provide tax assistance to small businesses based on need.