122nd MAINE LEGISLATURE
LD 370 LR 1249(01)
An Act To Amend the Sales and Use Tax Law Regarding the Food Service and Lodging Industries
Fiscal Note for Original Bill
Sponsor: Sen. Cowger of Kennebec
Committee: Taxation
Fiscal Note Required: Yes
   
             
Fiscal Note
Projections Projections
2005-06 2006-07 2007-08 2008-09
Net Cost (Savings)
General Fund $8,745,117 $12,627,360 $13,101,360 $13,575,360
Appropriations/Allocations
General Fund $22,000 $0 $0 $0
Revenue
General Fund ($8,723,117) ($12,627,360) ($13,101,360) ($13,575,360)
Other Special Revenue Funds ($478,483) ($692,640) ($718,640) ($744,640)
Fiscal Detail and Notes
Expanding a sales and use tax exemption for certain property used in the food and lodging industry is expected to reduce General Fund revenue by $8,723,117 in fiscal year 2005-06 and $12,627,360 in fiscal year 2006-07 based on an October 1, 2005 effective date.  Maine Revenue Services will also require a one-time General Fund appropriation of $22,000 in fiscal year 2005-06 for the administrative costs associated with this change.