An Act To Review Tax Expenditures on a Revolving Basis

Sec. 1. 36 MRSA §199-C, sub-§4  is enacted to read:

Sec. 2. Review process; review and recommendations. By January 1, 2014, the Joint Standing Committee on Taxation shall analyze the process for review of tax expenditures subject to review under the Maine Revised Statutes, Title 36, chapter 10. The committee shall organize the tax expenditures into 8 groupings based on similarity of purpose and function to facilitate the review required under Title 36, section 199-C, subsection 4. The committee shall determine the most effective way to identify the purpose of each tax expenditure, methods of evaluating the tax expenditures and the best method of ensuring effective review of tax expenditures including the advisability of subjecting each tax expenditure to a periodic automatic repeal with legislation needed to keep the tax expenditure in operation. The committee shall submit legislation to the Second Regular Session of the 126th Legislature to implement the results of its review.

SUMMARY

This bill requires the joint standing committee of the Legislature having jurisdiction over taxation matters to review tax expenditures on an 8-year cycle. The bill also requires analysis by the committee of the process for review of tax expenditures and a determination of the most effective way to identify the purpose of each tax expenditure, methods of evaluating the tax expenditures and the best method of ensuring effective review of tax expenditures including the advisability of subjecting each tax expenditure to a periodic automatic repeal with legislation needed to keep the tax expenditure in operation. The committee is directed to submit legislation to implement the results of its review to the Second Regular Session of the 126th Legislature.