An Act To Create a Tax Expenditures Budget Process
Maine Legislature, Session 126, LD 1488
Committee: Taxation
Sponsors: CAIN, ROTUNDO
Amends: 5 MRSA §1666, 36 MRSA §199-C, 36 MRSA §199-D

Legislative Document 
No. 1488 
S.P. 553 
In Senate, May 1, 2013 
An Act To Create a Tax Expenditures Budget Process 
Reference to the Committee on Taxation suggested and ordered printed. 
DAREK M. GRANT 
Secretary of the Senate 
Presented by Senator CAIN of Penobscot. 
Cosponsored by Representative ROTUNDO of Lewiston. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  5 MRSA §1666, 3rd ¶, as amended by PL 2007, c. 1, Pt. P, §2, is further 
amended to read: 
A budget document transmitted by the Governor or Governor-elect must include a 
part that asks the Legislature whether it wishes to continue funding each individual tax 
expenditure provided in the statutes.  For purposes of this paragraph, "tax expenditures" 
means those state tax revenue losses attributable to provisions of Maine tax laws that 
allow a special exclusion, exemption or deduction or provide a special credit, a 
preferential rate of tax or a deferral of tax liability.  The part must include for each tax 
expenditure a statutory section reference, a brief description of each tax expenditure and 
the loss of revenue estimated to be incurred by funding source and fiscal year.  This 
paragraph applies with respect to the preparation of the budget document for the 2008-
2009 biennium and thereafter.  Gross unified budget bills for the General Fund and the 
Highway Fund must include a part that requires the Legislature to express support for 
continuation of the tax expenditures identified in the budget document submitted by the 
Governor or Governor-elect.  When reviewing this part of a budget bill, the joint standing 
committee of the Legislature having jurisdiction over appropriations and financial affairs 
shall consider the most recent report on tax expenditures submitted by the joint standing 
committee of the Legislature having jurisdiction over taxation matters under Title 36, 
section 199-C. 
Sec. 2.  36 MRSA §199-C, sub-§1, as enacted by PL 2001, c. 652, §7, is amended 
to read: 
1.  Odd-numbered years.  During each odd-numbered year the committee may shall 
review the report required under section 199-B.  By November 1st of each odd-numbered 
year the committee shall submit a report to the joint standing committee of the 
Legislature having jurisdiction over appropriations and financial affairs that includes a 
recommendation for retention, repeal or amendment of each tax expenditure and the 
reason for the recommendation. 
Sec. 3.  36 MRSA §199-D, as enacted by PL 2001, c. 652, §7, is amended to read: 
§199-D.  Report 
The committee shall notify the Legislature of the results of each review conducted 
under section 199-C and may issue a report of its findings and recommendations.  The 
committee may report to the Legislature any legislation necessary to implement 
recommendations resulting from the review conducted under section 199-C. 
SUMMARY 
This bill requires the joint standing committee of the Legislature having jurisdiction 
over taxation matters to review all tax expenditures in odd-numbered years and submit a 
report to the joint standing committee of the Legislature having jurisdiction over 
appropriations and financial affairs recommending retention, amendment or repeal of tax 
expenditures described in the biennial report to the committee by the Department of 
Administrative and Financial Services, Bureau of Revenue Services.  The bill also 
requires gross unified budget bills to include a part indicating the Legislature's support for 
tax expenditures and requires the joint standing committee of the Legislature having 
jurisdiction over appropriations and financial affairs to consider the report from the joint 
standing committee of the Legislature having jurisdiction over taxation matters when 
reviewing that part of the budget bill.