124th MAINE LEGISLATURE
LD 1830 LR 2659(02)
An Act To Make Administrative Changes to Tax Laws To Maintain a Balanced Budget
Fiscal Note for Bill as Amended by Committee Amendment "       "
Committee: Appropriations and Financial Affairs
Fiscal Note Required: Yes
             
Fiscal Note
Contingent Revenue Increase - General Fund
Contingent Revenue Increase - Other Special Revenue Funds
Contingent current biennium savings - General Fund
Fiscal Detail and Notes
Presented below is a summary of the revised fiscal impact of Public Law 2009, chapter 382.  The fiscal impact of that law has changed from its original fiscal impact as a result of its suspension pursuant to a people's veto.  That revised impact is also compared to the impact that would result with the one-year delay in the effective dates in this bill.  The impacts presented immediately below would occur only if the people's veto fails at the June 2010 referendum.
2009-10 2010-11  2011-12  2012-13
Summary of Revenue Effects - Original Fiscal Note for Public Law 2009, chapter 382:
Individual Income Tax 
  General Fund ($32,762,193) ($84,498,244) ($87,558,520) ($80,599,999)
  Local Government Fund ($1,724,326) ($4,447,276) ($4,608,344) ($4,242,106)
Sales and Use Tax
  General Fund $40,671,839 $79,476,224 $81,261,687 $85,358,183
  Local Government Fund $2,140,623 $4,333,576 $4,503,893 $4,721,321
  Tourism Marketing Promotion Fund $0 $2,861,732 $4,312,287 $4,346,929
Tax and Rent Relief
  General Fund $0 ($808,753) $0 $0
Total General Fund Revenue $7,909,646 ($5,830,773) ($6,296,833) $4,758,184
2009-10 2010-11  2011-12  2012-13
Summary of Revenue Effects - If people's veto fails and no date changes:
Individual Income Tax 
  General Fund $0 ($114,263,000) ($79,450,000) ($71,186,000)
  Local Government Fund $0 ($6,014,000) ($4,182,000) ($3,747,000)
Sales and Use Tax
  General Fund $0 $65,523,000 $70,743,000 $73,240,000
  Local Government Fund $0 $3,449,000 $3,929,000 $4,074,000
  Tourism Marketing Promotion Fund $0 $0 $3,911,000 $4,171,000
Tax and Rent Relief
  General Fund $0 ($809,000) $0 $0
Total General Fund Revenue $0 ($49,549,000) ($8,707,000) $2,054,000
2009-10 2010-11  2011-12  2012-13
Summary of Revenue Effects - If people's veto fails and effective dates delayed one year:
Individual Income Tax 
  General Fund $0 ($32,813,000) ($79,450,000) ($71,186,000)
  Local Government Fund $0 ($1,727,000) ($4,182,000) ($3,747,000)
Sales and Use Tax
  General Fund $0 $32,757,000 $72,110,000 $73,158,000
  Local Government Fund $0 $1,724,000 $3,929,000 $4,074,000
  Tourism Marketing Promotion Fund $0 $0 $2,544,000 $4,253,000
Tax and Rent Relief
  General Fund $0 $0 ($935,000) $0
Total General Fund Revenue $0 ($56,000) ($8,275,000) $1,972,000
Net General Fund Revenue - LD 1830  $0 $49,493,000 $432,000 ($82,000)
This bill does not adjust the appropriations and allocations included in Public Law 2009, chapter 382.  However, the suspension of that law due to the people's veto has affected the timing and the amount of the administrative costs that would be incurred by Maine Revenue Services, Department of Administrative and Financial Services.  If the people's veto fails, the original appropriations included in the Act would become effective, except that the appropriations in fiscal year 2009-10 would lapse due to an effective date after the close of the fiscal year.  Presented below is a comparison of the total administrative costs of the original bill, the administrative costs as affected by the suspension due to the people's veto with no date changes and the administrative impact with the date changes.  All of these costs are contingent and would only occur if the people's veto fails.
2009-10 2010-11  2011-12  2012-13
Contingent General Fund Administrative Costs:
Original appropriations in PL 2009, c. 382 $523,073 $1,511,091 $967,304 $1,015,664
Costs with suspension by people's veto $0 $1,535,804 $1,140,890 $1,050,934
Costs with suspension and one-year delay $0 $635,479 $1,542,013 $1,062,878