123rd MAINE LEGISLATURE
		LD 1242		LR 1889(01)
	An Act To Increase Relief Provided under the Homestead Property Tax Exemption
	Fiscal Note for Original Bill
	Sponsor: Sen. Rotundo of Androscoggin
	Committee: Taxation
	Fiscal Note Required: Yes
Fiscal Note
			2007-08	2008-09	Projections 2009-10	Projections 2010-11
Net Cost (Savings)
	General Fund		$2,002,081	$2,978,616	$3,081,000	$3,191,916
Revenue
	General Fund		($2,002,081)	($2,978,616)	($3,081,000)	($3,191,916)
	Other Special Revenue Funds		$90,304,714	$134,606,068	$140,060,630	$146,181,653
Fiscal Detail and Notes
	Dedicating the Homestead property tax surcharge to the Homestead Exemption Surcharge Fund will increase Other Special Revenue Funds by an estimated $90,414,533 in fiscal year 2007-08 and $134,769,452 in fiscal year 2008-09.  This surcharge is expected to result in a drop in sales following the tax increase which will reduce General Fund revenue by an estimated $2,002,081 in fiscal year 2007-08 and $2,978,616 in fiscal year 2008-09.  Maine Revenue Services will also require additional General Fund appropriations for the administrative costs associated with this proposal.  The exact amount can not be determined at this time.