LD 427 LR 425(02)
An Act To Authorize Options for Local Revenue Enhancement
Fiscal Note for Bill as Amended by Committee Amendment " "
Committee: Taxation
Fiscal Note Required: Yes
Fiscal Note
Potential current biennium cost increase - General Fund
Fiscal Detail and Notes
Allowing participating municipalities to impose a local option sales tax of up to 1% of the purchase price of eligible items upon approval of the local option sales tax by local referendum will require Maine Revenue Services to determine the applicable tax revenue attributable to each municipality.  Additional administrative costs associated with this determination will be paid for from local option sales tax revenue collected unless the allowable adminstrative costs are greater than 2% of the total local option sales tax revenue generated, in which case a General Fund appropriation would be required to cover excess administrative expense.  Maine Revenue Services anticipates that the costs to establish a new computer program to account for the local option sales tax collection and disbursement would be in the vicinity of $1,400,000.