121st Maine Legislature
		Office of Fiscal and Program Review
		LD 403
		An Act To Amend the Laws Governing the Deduction of Pension and Retirement Benefits from State Income Tax
		LR 1018(01)
		Fiscal Note for Original Bill
		Sponsor: Sen. Gagnon
		Committee: Taxation
		Fiscal Note Required: Yes
Fiscal Note
					Projections	Projections
			2003-04	2004-05	2005-06	2006-07
Net Cost (Savings):
	General Fund		$1,613,496	$4,767,113	$6,544,423	$8,429,047
Revenue
	General Fund		($1,613,496)	($4,767,113)	($6,544,423)	($8,429,047)
	Other Special Revenue Funds		($88,504)	($261,487)	($358,977)	($462,353)
Fiscal Detail and Notes
	This bill increases the income tax deduction for income received from public, private and military pensions.  This change will reduce income tax collections by an estimated $1,702,000 in fiscal year 2003-04 and $5,028,600 in fiscal year 2004-05.  The reduction of these tax collections will decrease the amounts transferred to the Local Government Fund for state-municipal revenue sharing in those years by $88,504 and $261,487.  The resulting net reduction of General Fund revenue is estimated to be $1,613,496 in fiscal year 2003-04 and $4,767,113 in fiscal year 2004-05, based on tax years beginning on or after January 1, 2004.