LD 879
pg. 1
LD 879 Title Page An Act to Decrease Individual Income Tax by 20% Page 2 of 2
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LR 576
Item 1

 
Be it enacted by the People of the State of Maine as follows:

 
Sec. 1. 36 MRSA §5111-C is enacted to read:

 
§5111-C.__Revenue targeting

 
1.__Definitions.__As used in this section, unless the context
otherwise indicates, the following terms have the following
meanings.

 
A.__"Adjustment factor" means a number applicable to a tax
year determined by dividing the target revenue for the
numerically identical fiscal year by the tax revenue for
that fiscal year, rounded to the nearest 1/1,000.

 
B.__"Target revenue" means $910,112,839 for fiscal year
2001-02 and $958,757,671 for fiscal years beginning on or
after July 1, 2002.

 
C.__"Tax revenue" means undedicated General Fund individual
income tax revenue arising pursuant to this Part.

 
2.__Rate adjustment.__Annually, by September 15th, the State
Tax Assessor shall determine for the current tax year whether tax
revenue for the fiscal year ending the prior June 30th exceeded
the target revenue.__If target revenue was exceeded, the State
Tax Assessor shall adjust the tax rates as specified in the tax
rate tables in section 5111, as adjusted for the prior tax year
pursuant to this section, by multiplying the percentage rates by
the current tax year's adjustment factor.__The State Tax Assessor
may not adjust the rates for single individuals and married
persons filing separate returns with taxable income of $30,000 or
more; for unmarried individuals or legally separated individuals
who qualify as heads of households with taxable income of $45,000
or more; and for individuals filing married joint returns or
surviving spouses permitted to file a joint return with taxable
income of $60,000 or more.

 
3.__Revenue Targeting Fund.__The Revenue Targeting Fund,
referred to in this subsection as the "fund," is established to
carry out the purposes of this section.__For fiscal year 2001-02,
tax revenue exceeding $910,112,839 must be deposited to the fund.__
For the fiscal year beginning July 1, 2002, and for each
subsequent fiscal year up to and including the fiscal year ending
during the calendar tax year in which the limitation pursuant to
subsection 4 is reached, tax revenues exceeding $958,757,671 must
be deposited to the fund.__The fund does not lapse but carries
forward to the subsequent fiscal year.__Tax year 2004 and
subsequent tax year individual income tax refunds must be paid
from this fund until the fund balance carried forward from the
prior fiscal year is reduced to zero.


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