Whereas, the state tax rate assessed for telecommunications business personal property exceeds the average municipal property tax rate; and

Whereas, funds are now available and held in a reserve account that was authorized for the purpose of telecommunications tax reform; 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. 36 MRSA §457, sub-§2, as amended by PL 1991, c. 121, Pt. B, §2 and affected by §18, is repealed and the following enacted in its place:

2.__Tax imposed.__A tax is imposed on telecommunications personal property at the rate of 27 mills times the just value of the property for assessments determined as of May 15, 1999; 25 mills times the just value of the property for assessments determined as of May 30, 2000; 23 mills times the just value of the property for assessments determined as of May 30, 2001; 21 mills times the just value of the property for assessments determined as of May 30, 2002; and at the most current statewide average full-value tax rate times the just value of the property for assessments determined as of May 30, 2003 and thereafter.__ Just value is determined as of the April 1st preceding the assessment.__For purposes of the tax imposed by this section, the statewide average full-value tax rate is calculated by dividing total municipal property taxes assessed by the net total of the state valuation, minus the aggregate value of homestead exemptions as determined by the State Tax Assessor for the relevant assessment year.

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

SUMMARY

This bill phases in a state property tax rate reduction on telecommunications personal property to bring the state tax rate