123rd MAINE LEGISLATURE
		LD 207		LR 1014(01)
	An Act To Reduce the Meals and Lodging Tax
	Fiscal Note for Original Bill
	Sponsor: Rep. Cressey of Cornish
	Committee: Taxation
	Fiscal Note Required: Yes
Fiscal Note
			2007-08	2008-09	Projections 2009-10	Projections 2010-11
Net Cost (Savings)
	General Fund		$24,423,508	$47,005,485	$48,096,598	$50,277,198
Appropriations/Allocations
	General Fund		$38,000	$0	$0	$0
Revenue
	General Fund		($24,385,508)	($47,005,485)	($48,096,598)	($50,277,198)
	Other Special Revenue Funds		($1,337,602)	($3,864,515)	($5,117,402)	($5,294,562)
Fiscal Detail and Notes
	Reducing the meals and lodging tax from 7% to 5% will reduce General Fund revenue by an estimated $24,385,508 in fiscal year 2007-08 and $47,005,485 in fiscal year 2008-09.  It will also reduce transfers to the Local Government Fund by $1,337,602 in fiscal year 2007-08 and $2,645,240 in fiscal year 2008-09 and reduce transfers to the Tourism Promotion Marketing Fund by $1,219,275 in fiscal year 2008-09.   Maine Revenue Services will also require a one-time General Fund appropriation of $38,000 in fiscal year 2007-08 for taxpayer notification costs.