An Act To Provide Property Tax Relief for Maine Residents and Businesses and Implement Comprehensive Tax Reform
Maine Legislature, Session 121, LD 1141
Senate Amendment SA_A-SA_A_S557 (Senate)

SENATE AMENDMENT "A" to SENATE AMENDMENT "A" to H.P. 844, 
L.D. 1141, Bill, "An Act To Provide Property Tax Relief for Maine 
Residents and Businesses and Implement Comprehensive Tax Reform" 
Amend the amendment in Part A by striking out all of section 
and inserting in its place the following: 
'Sec. A-4. Contingent effective date. 
This 
August 1, 
2004 only if the voters ratify 
provided in Part K of this Act.' 
Part takes effect 
the 
referendum as 
Further 
amend the 
amendment in Part C in section 6 
by 
striking out all of the last 13 lines (page 10, lines 26 to 42 in 
amendment) 
]0 
Further amend the amendment by inserting after Part J the 
following: 
'PARTK 
Sec. K-l. Statutory referendum procedure; submission at statewide 
election; form of question; effective date. 
This Act takes effect when 
approved only for the purpose of permitting its submission to the 
legal voters of the State at a statewide election held on the 
Tuesday following the first Monday of June following passage of 
this Act. 
The municipal officers of this State shall notify the 
inhabitants of their respective cities, towns and plantations to 
meet, in the manner prescribed by law for holding a statewide 
election, to vote on the acceptance or rejection of this Act by 
voting on the following question: 
SENATE AMENDMENT 
SENATE AMENDMENT "A" to SENATE AMENDMENT "A" to H.P. 844, L.D. 
1141 
"Do you favor raising the sales tax by 1 'l-o and dedicating all 
the proceeds to 
fund education and provide property tax 
relief?" 
The legal voters of each city, 
town and plantation shall 
vote by ballot on this question and designate their choice by a 
cross or check mark placed within a corresponding square below 
the word "Yes" or "No." 
The ballots must be received, sorted, 
counted and declared in open ward, town and plantation meetings 
and returns made to the Secretary of State in the same manner as 
votes for members of the Legislature. 
The Governor shall review 
the returns and, if it appears that a majority of the legal votes 
are cast in favor of the Act, the Governor shall proclaim that 
fact without delay, 
and except as otherwise provided the Act 
takes effect 30 days after the date of the proclamation. 
The Secretary of State shall prepare and furnish to each 
city, town and plantation all ballots, returns and copies of this 
Act necessary to carry out the purposes of this referendum.' 
SUMMARY 
This amendment adds a statutory referendum on a 1% sales-tax 
increase. 
The referendum is to be held in June. 
The amendment 
also strikes that part of the appropriations and allocations 
section that provides funds to reimburse municipalities for the 
local cost associated with changes to the homestead exemption. 
FISCAL NOTE REQUIRED 
(See attached) 
SPONSORED BY: .1¢L .J ..J£.J) 
(Senator STANLEY) 
COUNTY: 
Penobscot 
SENATE AMENDMENT 
Approved: 04128/04 ,frae. 
Office of Fiscal and Program Review 
LD 1141 
An Act to Provide Property Tax Relief for Maine Residents and 
Businesses and Implement Comprehensive Tax Reform 
LR 0392(08) 
Fiscal Note for Senate Amendment '~'to Senate Amendment 'A' 
Sponsor: Sen. Stanley 
Fiscal Detail and Notes 
Referendum Costs 
Fiscal Note Required: Yes 
Fiscal Note 
Referendum Costs - June 2004 
MonthlYear 
Jun-04 
Election Type Question Type Question Length 
Special 
Referendum 
Standard 
The Secretary of State's budget currently includes sufficient funds for a referendum question at the special election in 
June 2004. 
If approved by the voters in June 2004, this bill will have the following fiscal impact: 
Projections 
Projections 
2003-04 
2004-05 
2005-06 
2006-07 
General Fund Appropriations 
Increase homestead exemption to $11,000, no tier 
$26,916,336 
$27,399,700 
$27,902,963 
Mainely Small Business Capital Fund (FAME) 
$6,000,000 
$6,000,000 
$6,000,000 
Tree Growth Reimbursement 
$100,000 
$102,000 
$104,040 
Administrative costs 
$374,683 
$334,385 
$351,104 
Total General Fund Appropriations 
$0 
$33,391,019 
$33,836,085 
$34,358,] 07 
General Fund Revenue 
Homestead Property Tax Cap Program 
($25,291,220) 
($26,248,785) 
($28,089,585) 
Small Business Job Creation Tax Refund 
($3,796,000) 
($3,792,000) 
($3,792,000) 
Individual income tax - property tax reimbursement 
$293,578 
$330,759 
$331,952 
Total General Fund Revenue 
$0 
($28,793,642) 
($29,710,026) 
($31,549,633) 
Total General Fund Costs (Savings) 
$62,184,661 
$63,546,111 
$65,907,740 
Transfers to Offset General Fund Costs 
($62,184,661) 
($63,546,111) 
($65,907,740) 
Net Costs to General Fund 
$0 
$0 
$0 
$0 
LR0392(8) - Fiscal Note - Page 1 of 2 
2003-04 
2004-05 
Disproportionate Tax Burden Fund - Increases (Decreases) to Balance 
Projections 
2005-06 
Projections 
2006-07 ' 
Sales tax to 6% * 
$5,892,504 
$6,965,800 
$7,298,27 
Homestead Property Tax Cap 
($1,359,170) 
($1,439,807) 
($1,540,77~J 
Small Business Job Creation Tax Refund 
($204,000) 
($208,000) 
($208,000) 
Individual income tax - property tax reimbursement 
$15,777 
$18,143 
$18,208 
--------~------~~------~~~~----~~~-
Net Increase (Decrease) 
$0 
$4,345,111 
$5,336,136 
$5,567,653 
Education Funding Stabilization Fund (EFSF) - Increases (Decreases) to Balance 
Sales tax to 6% - Net * 
$109,646,796 
$126,991,900 
Transfers to General Fund 
($62,184,661) 
($63,546,111) 
$133,052,237 
($65,907,740) 
Allocation to General Purpose Aid for Local Schools 
($29,163,745) 
--------------~~--~~------------------------
Net Balance Remaining in EFSF 
$0 
$18,298,390 
$63,445,789 
$67,144,497 
* Reflects August 1,2004 effective date and excludes sales affected by LD 1919 Part V. 
Conflicts with LD 1919 - 2004-2005 Supplemental Budget Bill 
The estimates included in this fiscal note reflect the impact of the bill as amended by this amendment and attempt to 
anticipate the interaction effects of this bill as amended and LD 1919, the 2004-2005 Supplemental Budget Bill, as 
amended by Committee Amendment "A". 
The additional sales tax revenue generated by the 1 % increase is reduced as a result of LD 1919 Part V, which 
changes the sales tax base by moving certain taxable sales to a service provider tax. IfLD 1919 Part V is not enactecl 
the revenue that would accrue to the Education Funding Stabilization Fund and the Disproportionate Tax Burden Fu 
in this bill would be increased. 
This bill also does not reflect the deappropriation in fiscal year 2004-05 as a result of the change of the treatment of 
the Maine Residents Property Tax Program (or "circuit breaker" program) as reductions of individual income tax 
revenue rather than a General Fund appropriation. If LD 1919 is not enacted, a deappropriation from the Maine 
Residents Property Tax Program will be required and the amount of the net change to General Fund revenue and the 
transfers to the Disproportionate Tax Burden Fund will be increased. 
The General Purpose Aid for Local Schools statutory changes and language establishing the fiscal year 2004-05 
distribution to municipalities assume that the additional $15 million provided in LD 1919 Part N is also 
apprpropriated. If the amounts in LD 1919 are affected, the amounts included in this bill and the statutory and other 
language establishing the distribution will need to be revised accordingly. 
LR0392(8) - Fiscal Note - Page 2 of 2