An Act To Provide Funding for the Low Income Home Energy Assistance Program
Maine Legislature, Session 122, LD 1891
Senate Amendment SA_A_S430 (Senate)
Amends: 36 MRSA §1811

SENATE AMENDMENT ,A .. to H.P. 1332, L.D. 1891, Bill, "An Act 
To Provide Funding for the Low 
Income Home 
Energy Assistance 
Program" 
Amend the bill by striking out the title and substituting 
the following: 
'An Act To Provide Funding for the the Low Income Home Energy 
Assistance 
Program 
and 
Provide 
Heating Assistance 
to 
Small 
Businesses' 
Further 
amend the bill by inserting after the enacting 
clause and before section 1 the following: 
'Sec. 1. 36 MRSA §1811, first 11, as amended by PL 2001, c. 439, 
Pt. TTTT, §2 and affected by §3, is further amended to read: 
A tax is imposed on the value of all tangible personal 
property and taxable services sold at retail in this State. 
The 
rate of tax is 
7% 
on the value of liquor sold in licensed 
establishments as defined in Title 28-A, section 2, subsection 
15, in accordance with Title 28-A, chapter 43; 7% on the value of 
rental of living quarters in any hotel, rooming house or tourist 
or trailer camp; 10% on the value of rental for a period of less 
than one year of an automobile; 7% on the value of prepared food; 
beginning March 1, 2006, 2.5% on the value of fuel purchased to 
heat a business that is not a manufacturing facility and that has 
no more than 50,000 square feet of space and employs 3 or more 
employees; and 5% on the value of all other tangible personal 
property and taxable services. 
Value is measured by the sale 
price, except as otherwise provided.' 
Further amend the bill in section 2 in the 2nd line (page 1, 
line 29 in L.D.) by striking out the following: 
"section 3" and 
inserting in its place the following: 
'this Act' 
SENATE AMENDMENT 
SENATE AMENDMENT .~. to H.P. 1332, L.D. 1891 
Further amend the bill by inserting after section 3 the 
following: 
. Sec. 
4. 
Appropriations 
and 
allocations. 
appropriations and allocations are made. 
The 
ADMIBISTRATlVE AND FIlIABCIAL SERVICES, DEPARTMENT OF 
Maine Revenue Services 
0002 
following 
Initiative: 
Provides one-time funds for the additional printing 
and mailing costs associated with the change in the tax rate and 
to modify the return form. 
GENERAL FOND 
A11 Other 
GENERAL FUND TOTAL 
2005-06 
$20,000 
$20,000 
2006-07 
$0 
$0' 
Further amend the bill by relettering 
nonconsecutive 
Part 
letter 
or 
section 
consecutively. 
or renumbering any 
number 
to 
read 
SUMMARY 
Under current law, 
the sale of fuel, when purchased for 
heating homes, apartments and hotels is exempt from sales tax, 
but when purchased for heating a business is subject to the Sq.o 
sales tax. 
This amendment reduces from S% to 2.S% the sales tax 
imposed on fuel purchased to heat a business if that business has 
no more than SO, 000 square fee of space and employs 3 or more 
employees. 
This 
amendment 
also 
includes 
a 
one-time 
General 
Fund 
appropriation of $20,000 in fiscal year 200S-06 for Maine Revenue 
Services for the additional administrative costs associated with 
the change in the tax rate. 
SPONSORED BY: 
FISCAL NOTE REQUIRED 
(See attached) 
(Senator COU 
SO 
COUNTY: 
Yor 
S2 
SENATE AMENDMENT 
Approved: 01/04/06 ;t!;?ac:.. 
LD 1891 
LR 3064(03) 
An Act To Provide Funding for the Low Income Home Energy Assistance Program 
Fiscal Note for Senate Amendment ,A 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Sponsor: Sen Courtney 
Fiscal Note Required: Yes 
Fiscal Note 
2005-06 
$1,233,676 
$20,000 
($1,213,676) 
($65,224) 
2006-07 
$4,398,615 
$0 
($4,398,615) 
($236,385) 
Projections 
2007-08 
$4,481,860 
$0 
($4,481,860) 
($245,840) 
Projections 
2008-09 
$4,571,497 
$0 
($4,571,497) 
($250,757) 
Reducing the sales tax from 5% to 2.5% on fuel purchased for heating a business of no more than 50,000 square feet 
employing 3 or more people is expected to decrease General Fund revenue by $1,213,676 in fiscal year 2005-06 and 
$4,398,615 in fiscal year 2006-07. This amendment also includes a one-time General Fund appropriation of $20,000 
in fiscal year 2005-06 for Maine Revenue Services for the additional administrative costs associated with the change 
in the tax rate. 
LR3064(3) - Fiscal Note - Page 1 of 1