Resolve, To Provide Greater Depth and Transparency to the Review of Foregone Revenue Identified in the Biennial Tax Expenditure Report
Maine Legislature, Session 126, LD 1255
Committee: Taxation
Sponsors: STUCKEY, HASKELL, EVES, GIDEON, GOODE, KRUGER, MOONEN, PRIEST, TIPPING-SPITZ, JACKSON

Legislative Document 
No. 1255 
H.P. 889 
House of Representatives, March 27, 2013 
Resolve, To Provide Greater Depth and Transparency to the Review 
of Foregone Revenue Identified in the Biennial Tax Expenditure 
Report 
Reference to the Committee on Taxation suggested and ordered printed. 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative STUCKEY of Portland. 
Cosponsored by Senator HASKELL of Cumberland and 
Representatives: Speaker EVES of North Berwick, GIDEON of Freeport, GOODE of Bangor, 
KRUGER of Thomaston, MOONEN of Portland, PRIEST of Brunswick, TIPPING-SPITZ of 
Orono, Senator: JACKSON of Aroostook. 
Sec. 1.  Independent analysis.  Resolved:  That, by November 1, 2013, the 
Department of Administrative and Financial Services, Bureau of Revenue Services shall 
issue a request for proposals for the purpose of contracting with an independent academic 
policy analysis organization to review and analyze attempts by the Legislature and 
executive agencies over the past 20 years, including biennial tax expenditure reports, to 
determine the impact and effectiveness of tax expenditures as defined in the Maine 
Revised Statutes, Title 5, section 1666 and recent efforts of other states and the Federal 
Government to perform a similar function and to recommend options for the Legislature 
to analyze tax expenditures in the future.  The bureau shall select a contractor to perform 
the work required under this resolve by March 1, 2014.  The contract must require 
completion of the contracted work by December 15, 2014. 
1.  Format for analysis.  The contract must require the contractor to separate tax 
expenditures into categories based on the general purpose of the expenditures.  Categories 
may include tax expenditures for government entities, economic development, charitable 
organizations and education organizations, including those that advance knowledge in the 
fields of science and the humanities; conformity with federal law; efficiency of 
administration; and any other categories the contractor determines advisable to facilitate 
analysis.  The contractor shall identify in its analysis any tax expenditures for which the 
purpose cannot be determined. 
2.  Options for the Legislature.  The contract must require the contractor to identify 
and analyze options that may be used by the Legislature to measure the effectiveness of 
individual tax expenditures based on the purpose of those expenditures.  The options may 
include procedures that focus on those tax expenditures with an estimated cost exceeding 
a cost level that the contractor considers significant.  The options must include methods 
of identifying the objectives for each expenditure and methods of measuring the extent to 
which the objectives have been accomplished.  The options must include an estimate of 
the amount of resources and funding that would be necessary to perform the described 
tasks. 
3.  Consultation.  The contract must require the contractor to meet at least once with 
the joint standing committee of the Legislature having jurisdiction over appropriations 
and financial affairs and the joint standing committee of the Legislature having 
jurisdiction over taxation matters to provide a preliminary plan for performing the work 
required under the contract and obtain information regarding the types of data and 
analysis of tax expenditures that would be most helpful to those committees in 
performing their legislative oversight functions. 
4.  Report.  The contract must require the contractor to submit a report providing the 
elements required under the contract to the bureau and to the joint standing committee of 
the Legislature having jurisdiction over appropriations and financial affairs and the joint 
standing committee of the Legislature having jurisdiction over taxation matters of the 
Sec. 2.  Appropriations and allocations.  Resolved:  That the following 
appropriations and allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Bureau of Revenue Services 
Initiative: Provides funding to contract with an independent academic policy analysis 
organization to review, analyze and develop options for evaluation of tax expenditures. 
SUMMARY 
This resolve requires the Department of Administrative and Financial Services, 
Bureau of Revenue Services to contract with an independent academic policy analysis 
organization by March 1, 2014 to review, analyze and develop options that would permit 
the Legislature to evaluate the effectiveness of tax expenditures and present a report of its 
work to the joint standing committee of the Legislature having jurisdiction over 
appropriations and financial affairs and the joint standing committee of the Legislature 
having jurisdiction over taxation matters of the First Regular Session of the 127th 
Legislature. 
GENERAL FUND 
2013-14
2014-15
All Other 
$100,000
$0
GENERAL FUND TOTAL 
$100,000
$0