124th MAINE LEGISLATURE
		LD 1473		LR 1987(02)
	An Act To Reaffirm Maine's Commitment to Business by Amending the Pine Tree Development Zone Laws
	Fiscal Note for Bill as Amended by Committee Amendment "   "
	Committee: Business, Research and Economic Development
	Fiscal Note Required: Yes
Fiscal Note
			2009-10	2010-11	Projections 2011-12	Projections 2012-13
Net Cost (Savings)
	General Fund		$0	$412,916	$788,749	$1,166,285
Revenue
	General Fund		$0	($412,916)	($788,749)	($1,166,285)
	Other Special Revenue Funds		$0	($21,732)	($41,513)	($61,383)
Fiscal Detail and Notes
	This expansion of Pine Tree Development Zone benefits will result in reductions of sales tax revenue from exemptions for purchases of certain building materials and tangible personal property purchased by qualified businesses.   Individiual and corporate income taxes will be also be reduced by credits and Maine Employment Tax Increment Financing equal to 80% of qualified employees' state income tax withholding reimbursed to qualified businesses.
	This bill will set aside revenue resulting from any new economic activity that would not have occurred but for the availability of Pine Tree Development Zone benefits.  The amount of the initial reduction of General Fund revenue that will be deposited in the Pine Tree Development Zone Fund can not be estimated at this time as it will depend on the amount of additional economic activity that has already occurred or will occur as a result fo the Pine Tree Development Zone benefits and a calculation of the resulting revenue generated by that economic activity.  This would need to be  determined within the State’s economic and revenue forecasts.  The revenue not required to administer and provide benefits under the Pine Tree Development Zone program would be transferred back to the General Fund.
	Based on the current economic and revenue forecasts, this bill will result in net reductions of budgeted General Fund revenue beginning in fiscal year 2010-11.  The total General Fund revenue loss is estimated at $412,916 in fiscal year 2010-11, $788,749 in fiscal year 2011-12 and $1,166,285 in fiscal year 2012-13.  Local Government Fund revenue will also be reduced by $21,732 in fiscal year 2010-11 and proportionately to the General Fund revenue loss in future fiscal years.
	The amount of the additional administrative costs incurred by Maine Revenue Services to determine the amount of revenue accruing from Pine Tree Development Zones can not be determined at this time.