123rd MAINE LEGISLATURE
		LD 735		LR 681(01)
	An Act To Provide an Income Tax Exemption for Active Duty Military Pay and Disability Military Pay
	Fiscal Note for Original Bill
	Sponsor: Rep. Vaughan of Durham
	Committee: Taxation
	Fiscal Note Required: Yes
Fiscal Note
			2007-08	2008-09	Projections 2009-10	Projections 2010-11
Net Cost (Savings)
	General Fund		$826,358	$2,126,467	$2,169,214	$2,234,564
Appropriations/Allocations
	General Fund		$0	$35,780	$15,806	$16,554
Revenue
	General Fund		($826,358)	($2,090,687)	($2,153,408)	($2,218,010)
	Other Special Revenue Funds		($45,328)	($114,679)	($118,119)	($121,663)
Fiscal Detail and Notes
	Providing an income tax exemption for certain military pay for tax years beginning on and after January 1, 2008 will reduce General Fund revenue by an estimated $826,358 in fiscal year 2007-08 and $2,090,687 in fiscal year 2008-09.  Maine Revenue Services will also require $35,780 in fiscal year 2008-09 for the administrative costs associated with this new exemption, including funds for one part-time Tax Examiner position.