HP0115, LD 133, item 1, An Act To Fully Restore State-Municipal Revenue Sharing for Fiscal Year 2018-19

An Act To Fully Restore State-Municipal Revenue Sharing for Fiscal Year 2018-19

Emergency preamble. Whereas, acts and resolves of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and

Whereas, state-municipal revenue sharing was decreased for fiscal years 2015-16, 2016-17, 2017-18 and 2018-19 from 5% to 2%; and

Whereas, the decrease in funds shared with municipalities has had a drastic effect on municipalities and their ability to provide services to their residents; and

Whereas, although the percentage of revenue sharing is scheduled to return to 5% beginning July 1, 2019, it is necessary that these funds be restored as soon as possible to avoid further damage to municipalities; and

Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 30-A MRSA §5681, sub-§5, as amended by PL 2015, c. 267, Pt. K, §1, is further amended to read:

5. Transfers to funds. No later than the 10th day of each month, the State Controller shall transfer to the Local Government Fund 5% of the receipts during the previous month from the taxes imposed under Title 36, Parts 3 and 8, and Title 36, section 2552, subsection 1, paragraphs A to F and L, and credited to the General Fund without any reduction, except that for fiscal years 2015-16, 2016-17 , and 2017-18 and 2018-19 the amount transferred is 2% of the receipts during the previous month from the taxes imposed under Title 36, Parts 3 and 8, and Title 36, section 2552, subsection 1, paragraphs A to F and L, and credited to the General Fund without any reduction, and except that the postage, state cost allocation program and programming costs of administering state-municipal revenue sharing may be paid by the Local Government Fund. A percentage share of the amounts transferred to the Local Government Fund each month must be transferred to the Disproportionate Tax Burden Fund and distributed pursuant to subsection 4-B as follows:

C. For months beginning on or after July 1, 2009 but before July 1, 2010, 15%;

D. For months beginning on or after July 1, 2010 but before July 1, 2011, 16%;

E. For months beginning on or after July 1, 2011 but before July 1, 2012, 17%;

F. For months beginning on or after July 1, 2012 but before July 1, 2013, 18%;

G. For months beginning on or after July 1, 2013 but before July 1, 2014, 19%; and

H. For months beginning on or after July 1, 2014, 20%.

Sec. 2. Retroactivity. This Act applies retroactively to July 1, 2018.

Emergency clause. In view of the emergency cited in the preamble, this legislation takes effect when approved.

SUMMARY

This bill restores state-municipal revenue sharing to 5% from 2% for the entire fiscal year 2018-19. The law currently requires revenue sharing to revert to 5% beginning July 1, 2019.

HP0115 LD 133	Session - 129th Maine Legislature		LR 542 Item 1
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