122nd MAINE LEGISLATURE
		LD 2056		LR 3069(04)
	An Act To Replace Municipal Revenues Subject to Business Equipment Property Tax Exemption
	Fiscal Note for Bill as Amended by Committee Amendment "   "
	Committee: Taxation
	Fiscal Note Required: Yes
Fiscal Note
Future biennium revenue decrease - General Fund
Future biennium cost increase - General Fund
					Projections	Projections
			2005-06	2006-07	2007-08	2008-09
Net Cost (Savings)
	General Fund		$0	$0	$0	$11,373,516
Revenue
	General Fund		$0	$0	$0	($11,373,516)
	Other Special Revenue Funds		$0	$0	$0	$393,741
Funded State Mandate
State Mandate
	New or Expanded Activity			Unit Affected	Costs
	Administrative costs associated with the business equipment tax exemption that are required to be funded pursuant to 36 MRSA §700			Municipality	Less than
					$100,000
					annually
Fiscal Detail and Notes
	This bill will decrease General Fund revenue by an estimated $11,373,516 in fiscal year 2008-09 to reimburse municipalities for the business equipment tax exemption.  The General Fund impact beyond this four-year forecast period is estimated to be a net General Fund cost of $14,360,215 in fiscal year 2009-10, $11,277,578 in fiscal year 2010-11, $6,786,980 in fiscal year 2011-12 and $1,889,742 in fiscal year 2012-13.  Beginning in fiscal year 2013-2014, the provisions of this bill are expected to result in net General Fund savings.
	Maine Revenue Services will require a General Fund appropriation in fiscal year 2008-09 to reimburse municipalities for 90% of the state-mandated costs.  The amount of the additional administrative costs and the 90% reimbursement will be determined by Maine Revenue Services.  The estimated annual General Fund appropriations required for reimbursement are expected to be less than $100,000 and reflect only the local administrative costs of processing and reviewing the taxpayer forms and reports.  This estimate does not reflect any costs associated with local enforcement or appeals.