An Act To Aid Municipalities and the Unorganized Territory in the Reduction of Property Taxes ~
Maine Legislature, Session 124, LD 0788
Committee Amendment CA_A_H584 (House)
Amends: 30-A MRSA §5686

COMMITTEE AMENDMENT "A " to H.P. 539, L.D. 788, Bill, "An Act To Aid 
Municipalities and the Unorganized Territory in the Reduction of Property Taxes" 
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Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 30-A MRSA §5686 is enacted to read: 
§5686. Local sales tax increment disbursement 
1. Local sales tax increment. Beginning in fiscal year 2012-13, the State Tax 
Assessor shall gather and maintain information that demonstrates the amount of revenue 
and the amount of local sales tax increment for each fiscal year that is attributable to each 
municipality and the unorganized territory under Title 36, Part 3. For the purposes of this 
section, "local sales tax increment" means 10% of the increase in revenue attributable to a 
municipality or the unorganized territory under Title' 36, Part 3 over the amount 
attributable to the municipality or the unorganized territory in fiscal year 2012-13. 
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2. Transfers. Beginning in fiscal year 2013-14, the State Tax Assessor shall certify 
to the State Controller by September 30th annually the local sales tax increment amounts 
needed to make payments under this section. The State Controller shall, within 15 days 
after the certification, transfer those amounts to a local sales tax increment account, 
which must be established for this purpose. 
3. Payments to municipalities and the unorganized ten-itory. The Treasurer of 
,State shall pay by October 1 st annually to each municipality and to each county with 
unorganized territOlY from the local sales tax increment account established pursuant to 
subsection 2 an amount equal to the local sales tax increment. If the local sales tax 
increment for a municipality or a county with unorganized territory is $0 or less, a 
payment may not be made for that fiscal year. The Treasurer of State shall pay the 
amount due under this section and provide an accounting of the amount to the 
municipality, the county or the fiscal administrator of the unorganized territory no later 
than 6 months after the end of that fiscal year. The amount received under this section by 
a municipality or for the benefit of the unorganized territory may not reduce or be 
Page I - 124LR1267(02)-1 
COMMITTEE AMENDMENT 
\it. ~ if.,. 
COMMITTEE AMENDMENT·A " to H.P. 539, L.D. 788 
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reduced by any other revenue sharing or state aid received by the municipality or the 
county with unorganized territory. An amount received by a municipality under this 
section must be used by the municipality to reduce property tax levies in that municipality 
in an amount equal to the amount received in the fiscal year that the revenue is received. 
An amount received by a county with unorganized territory must be deposited in the 
unorganized territory fund for that county established under section 7502. The payment 
of the local sales tax increment must be used to reduce the budget request of the county 
for services in the unorganized territory for the subsequent fiscal year under section 
7503.' 
SUMMARY 
This amendment delays by 2 years the beginning of the local sales tax increment 
distribution system and changes the method of distributing and applying the local sales 
tax increment for the unorganized territory from the state level to the county level. 
FISCAL :\OTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
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Approved: 01/04/10 frac. 
:l24th MAINE LEGISLATURE 
LD788 
LR 1267(02) 
An Act To Aid Municipalities and the Unorganized Territory in the Reduction of Property Taxes 
Fiscal Detail and Notes 
Fiscal Note for Bill as Amended by Committee Amendment '!ti" 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
Future bielmium revenue decrease - General Fund 
This bill does not have any fiscal impact on the cUITent forecast period. The required annual transfer for local sales 
tax increment distribution will reduce Sales and Use tax revenue beginning in fiscal year 2013-14. The fiscal year 
2013-14 transfer is estimated to be $4,900,000, resulting in a General Fund loss of $4,655,000. 
LR1267(02) - Fiscal Note - Page 1 of 1