An Act To Provide Local Sales Tax Increment Disbursements
Maine Legislature, Session 126, LD 0401
Committee Amendment CA_A_H166 (House)

COMMITTEE AMENDMENT "A" to H.P. 276, L.D. 401, Bill, "An Act To 
Provide Local Sales Tax Increment Disbursements" 
Amend the bill in section 1 in §5686 by striking out all of subsection 1 (page 1, lines 
to 10 in L.D.) and inserting the following: 
'I. Local sales tax increment. Beginning with fiscal year 2014-15, the State Tax 
Assessor shall, based on available taxable retail sales data as derived from state sales tax 
collections, excluding taxable retail sales data for lodging and restaurants, determine the 
amount of sales tax revenue and the amount of the 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 5% 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 2014-15 and every 4th year thereafter.' 
Amend the bill in section 1 in §5686 in subsection 3 by striking out all of the last 
sentence (page 1, lines 26 to 29 in L.D.) and inserting the following: 'A municipality or 
the fiscal administrator of the unorganized territory shall reduce the property tax levy in 
an amount equal to the payments received under this section in the fiscal year that the 
local sales tax increment revenue is received.' 
Amend the bill by adding after section 1 the following: 
'Sec. 2. Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Revenue Services, Bureau of 0002 
Initiative: Provides a one-time General Fund appropriation to the Bureau of Revenue 
Services for administrative and technology costs associated with administering a local 
sales tax increment disbursement program. 
COMMITTEE AMENDMENT 
~~ 
~ 
COMMITIEE AMENDMENT "A" to H.P. 276, L.D. 401 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
SUMMARY 
2013-14 
$54,000 
$54,000 
2014-15 
$0 
$0 
This amendment requires the State Tax Assessor to determine the amount of the local 
sales tax increment based on available taxable retail sales data as derived from state sales 
tax collections excluding data reported in the categories of lodging and restaurants. The 
bill requires the State Tax Assessor to 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. The amendment 
requires that the base year for determining the local sales tax increment be reset every 4 
years. It clarifies that the municipality or fiscal administrator of the unorganized territory 
must use the local sales tax increment payments received to reduce property taxes. 
The amendment also adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Revised: 05/11/13 ;:t!vac:. 
LD401 
LR 1095(02) 
An Act To Provide Local Sales Tax Increment Disbursements 
Fiscal Note for Bill as Amended by Committee Amendment ''A (rt -KoLa ) 
Committee: Taxation 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
State Mandates 
Fiscal Note Required: Yes 
Fiscal Note 
State Mandate - Unfunded 
FY 2013-14 
$54,000 
$54,000 
$0 
$0 
FY 2014-15 
$0 
$0 
$0 
$0 
Projections 
FY 2015-16 
$0 
$0 
$0 
$0 
Required Activity 
Unit Affected 
Municipalities will be required to reduce the property tax levy in an amount equal to 
Municipality 
the payments received from the local sales tax increment revenue. Administrative 
duties would include accounting for the new revenue source and calculating the 
reduction to the mill rate that would represent that amount of revenue each year. 
Projections 
FY 2016-17 
$1,757,264 
$0 
($1,757,264) 
($96,172) 
Local Cost 
Insignificant 
statewide 
The required local activities in this bill may represent a State mandate pursuant to the Constitution of Maine. Unless 
General Fund appropriations are provided to fund at least 90% of the additional costs or a Mandate Preamble is 
amended to the bill and two-thirds of the members of each House vote to exempt this mandate from the funding 
requirement, municipalities may not be required to implement these changes. 
Fiscal Detail and Notes 
This bill will reduce General Fund and Other Special Revenue Funds revenue annually beginning in FY 2016-17. The 
General Fund revenue reduction in FY 2016-17 will be $1,757,264. Muncipal Revenue Sharing will be reduced by 
$92,672 and the transfer to the Multimodal Transportation Fund will be reduced by $3,500 in FY 2016-17. 
LRI095(02) - Fiscal Note - Page 1 of2 
CA C H -\toto) 
The bill includes a one-time General Fund appropriation for the Bureau of Revenue Services of $54,000 in FY 2013-
to pay for reporting changes, printing and postage costs related to administering the local sales tax increment 
disbursement program. 
LR1095(02) - Fiscal Note - Page 2 of2