123rd MAINE LEGISLATURE
		LD		LR 2657(01)
	An Act To Cut Taxes on Maine Residents by over $125,000,000
	Fiscal Note for Original Bill
	Committee: Taxation
	Fiscal Note Required: Yes
Fiscal Note
			2007-08	2008-09	Projections 2009-10	Projections 2010-11
Net Cost (Savings)
	General Fund		($346,551)	($72,188)	$21,351,495	$26,712,070
Appropriations/Allocations
	General Fund		$1,095,164	$33,203,556	$33,430,184	$34,039,339
	Other Special Revenue Funds		$0	$1,001,493	$3,101,329	$3,078,489
Revenue
	General Fund		$1,441,715	$33,275,744	$12,078,689	$7,327,269
	Other Special Revenue Funds		($1,257,361)	$84,519	$2,188,483	$2,123,961
Fiscal Detail and Notes
Gross Revenue Impact			2007-08	2008-09	Projections 2009-10	Projections 2010-11
Individual Income Tax
	Flat Rate at 6%, Household Credit		($85,392,300)	($193,225,500)	($185,952,600)	($195,777,200)
	Section 179 Conformity		($2,066,400)	($4,765,600)	($1,959,300)	$2,042,900
	Transfer, Tax Relief for Maine Residents		$0	$0	($8,036,691)	($7,115,273)
Corporate Income Tax
	Flat Rate at 8.93%		$1,020,000	$6,822,500	$6,980,000	$7,166,500
	Transfer, Tax Relief for Maine Residents		$0	$0	($1,250,334)	($3,241,103)
Sales and Use Tax
	Expand Base, Repeal Exemptions		$41,937,440	$117,846,793	$121,588,905	$125,725,359
	Meals and Lodging to 8%		$8,227,200	$26,890,000	$28,110,000	$29,340,000
	Expanded Tax on Prepared Foods @ 8%		$11,116,800	$35,400,000	$35,890,000	$36,470,000
	Transfer, Tax Relief for Maine Residents		$0	$0	($6,864,505)	($7,617,605)
	Transfer, Local Tax Increment		$0	$0	($4,576,337)	($9,654,740)
			2007-08	2008-09	Projections 2009-10	Projections 2010-11
Real Estate Transfer Tax
	Graduated Tax Based on Value		$23,450,000	$36,820,000	$40,686,100	$45,446,374
Beer and Wine
	Double Excise Tax (except for small manufacturers of malt liquor)		$8,291,614	$10,364,518	$10,364,518	$10,364,518
Property Tax and Rent Refund Program
	Expand Circuitbreaker Program		$0	($7,315,000)	($22,570,000)	($23,698,500)
Section 179 Reserve Fund Transfers			($6,400,000)	$4,522,554	$1,857,416	$0
			$184,354	$33,360,265	$14,267,172	$9,451,230
General Fund Appropriation Summary
	Homestead Property Tax Reimbursement		$0	$31,641,000	$31,641,000	$31,641,000
	Elderly Tax Deferal Porgram		$0	$492,000	$1,060,875	$1,647,008
	Administrative Costs		$1,095,164	$1,070,556	$728,309	$751,331
			$1,095,164	$33,203,556	$33,430,184	$34,039,339
Other Special Revenue Fund Summary
	Local Government Fund		($1,283,021)	($935,688)	($931,476)	($974,009)
	Tourism Marketing Promotion Fund		$0	$1,001,493	$3,101,329	$3,078,489
	Fund for the Efficient Delivery of Local and Regional Services		$25,660	$18,714	$18,630	$19,480