An Act To Provide Equitable Revenue-sharing Distribution
Maine Legislature, Session 125, LD 0762
Committee: Appropriations and Financial Affairs
Sponsors: SHAW, BICKFORD, BRYANT, CLARK, GOODE, PILON
Amends: 30-A MRSA §5681

Legislative Document 
No. 762 
H.P. 569 
House of Representatives, March 1, 2011 
An Act To Provide Equitable Revenue-sharing Distribution 
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative SHAW of Standish. 
Cosponsored by Representatives: BICKFORD of Auburn, BRYANT of Windham, CLARK of 
Millinocket, GOODE of Bangor, PILON of Saco. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  30-A MRSA §5681, sub-§4-B, as enacted by PL 1999, c. 731, Pt. U, §4, 
is amended to read: 
4-B.  Distribution of Disproportionate Tax Burden Fund.  The Treasurer of State 
shall transfer the balance in the Disproportionate Tax Burden Fund on the 20th day of 
each month.  Money in the Disproportionate Tax Burden Fund must be distributed to 
each municipality defined as a service center community pursuant to section 4301, 
subsection 14-A as of January 1st of the previous fiscal year in proportion to the product 
of the population of the municipality multiplied by the disproportionate tax burden of the 
municipality. 
Sec. 2.  30-A MRSA §5681, sub-§5, as amended by PL 2009, c. 213, Pt. S, §4 
and affected by §16, is further amended to read: 
5.  Transfers to funds.  No later than the 10th day of each month, the State 
Controller shall transfer to the Local Government Fund 5% of the receipts during the 
previous month from the taxes imposed under Title 36, Parts 3 and 8, and Title 36, 
section 2552, subsection 1, paragraphs A to F and L, and credited to the General Fund 
without any reduction, except that the postage, state cost allocation program and 
programming costs of administering state-municipal revenue sharing may be paid by the 
Local Government Fund.  A percentage share of the amounts transferred to the Local 
Government Fund each month must be transferred to the Disproportionate Tax Burden 
Fund and distributed pursuant to subsection 4-B as follows: 
C.  For months beginning on or after July 1, 2009 but before July 1, 2010, 15%; 
D.  For months beginning on or after July 1, 2010 but before July 1, 2011, 16%; 
E.  For months beginning on or after July 1, 2011 but before July 1, 2012 October 1, 
2011, 17%; and 
E-1.  For months beginning on or after October 1, 2011, 11%. 
F.  For months beginning on or after July 1, 2012 but before July 1, 2013, 18%; 
G.  For months beginning on or after July 1, 2013 but before July 1, 2014, 19%; and 
H.  For months beginning on or after July 1, 2014, 20%. 
SUMMARY 
This bill changes the method for distributing the money in the Disproportionate Tax 
Burden Fund, known as "Rev II," beginning October 1, 2011 and increases funding to 
so-called "Rev I" municipalities.  Currently, Rev II funds are distributed to each 
municipality with a property tax mill rate over 10 mills in proportion to the 
disproportionate tax burden.  Under this bill, Rev II funds will be distributed only to those 
municipalities with a property tax mill rate over 10 mills that are designated as service 
center communities, which by definition include census designated places.  Beginning 
October 1, 2011, the bill reduces the amount transferred from the Local Government 
Fund to the Disproportionate Tax Burden Fund to 11% each year.  This will increase the 
total amount of funding going to Rev I municipalities.