Bill Summary – FastDemocracy

130th MAINE LEGISLATURE
                  FIRST REGULAR SESSION-2021
Legislative Document                                                                         No. 328
H.P. 232                                                   House of Representatives, February 8, 2021
           An Act To Fully Fund and Restore State-Municipal Revenue
           Sharing
                                     (EMERGENCY)
   Received by the Clerk of the House on February 4, 2021. Referred to the Committee on
Taxation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.
                                                                                 ROBERT B. HUNT
                                                                                            Clerk
Presented by Representative HARNETT of Gardiner.
Cosponsored by Representatives: BRENNAN of Portland, LANDRY of Farmington,
PEBWORTH of Blue Hill, RECKITT of South Portland, STOVER of Boothbay, WHITE of
Waterville, Senator: President JACKSON of Aroostook.
                                       Printed on recycled paper
 1      Emergency preamble. Whereas, acts and resolves of the Legislature do not
 2   become effective until 90 days after adjournment unless enacted as emergencies; and
 3       Whereas, state-municipal revenue sharing was decreased for fiscal years 2015-16,
 4   2016-17, 2017-18 and 2018-19 from 5% to 2%, was 3% for fiscal year 2019-20 and is
 5   3.75% for fiscal year 2020-21; and
 6      Whereas, the decrease in funds shared with municipalities has had a drastic effect on
 7   municipalities and their ability to provide services to their residents; and
 8       Whereas, although the percentage of revenue sharing is scheduled to return to 5%
 9   beginning July 1, 2021, it is necessary that these funds be increased as soon as possible to
10   avoid further damage to municipalities; and
11       Whereas, in the judgment of the Legislature, these facts create an emergency within
12   the meaning of the Constitution of Maine and require the following legislation as
13   immediately necessary for the preservation of the public peace, health and safety; now,
14   therefore,
15   Be it enacted by the People of the State of Maine as follows:
16       Sec. 1. 30-A MRSA §5681, sub-§5, as amended by PL 2019, c. 343, Pt. H, §1, is
17   further amended to read:
18        5. Transfers to funds. No later than the 10th day of each month, the State Controller
19   shall transfer to the Local Government Fund 5% of the receipts during the previous month
20   from the taxes imposed under Title 36, Parts 3 and 8, and Title 36, section 2552, subsection
21   1, paragraphs A to F and L, and credited to the General Fund without any reduction, except
22   that for fiscal years 2015-16, 2016-17, 2017-18 and 2018-19 the amount transferred is 2%,
23   for fiscal year 2019‑20 the amount transferred is 3% and for the first 6 months of fiscal
24   year 2020‑21 the amount transferred is 3.75% of the receipts during the previous month
25   from the taxes imposed under Title 36, Parts 3 and 8, and Title 36, section 2552, subsection
26   1, paragraphs A to F and L, and credited to the General Fund without any reduction, and
27   except that the postage, state cost allocation program and programming costs of
28   administering state-municipal revenue sharing may be paid by the Local Government Fund.
29   A percentage share of the amounts transferred to the Local Government Fund each month
30   must be transferred to the Disproportionate Tax Burden Fund and distributed pursuant to
31   subsection 4‑B as follows:
32       C. For months beginning on or after July 1, 2009 but before July 1, 2010, 15%;
33       D. For months beginning on or after July 1, 2010 but before July 1, 2011, 16%;
34       E. For months beginning on or after July 1, 2011 but before July 1, 2012, 17%;
35       F. For months beginning on or after July 1, 2012 but before July 1, 2013, 18%;
36       G. For months beginning on or after July 1, 2013 but before July 1, 2014, 19%; and
37       H. For months beginning on or after July 1, 2014, 20%.
38       Sec. 2. Retroactivity. This Act applies retroactively to January 1, 2021.
39       Emergency clause. In view of the emergency cited in the preamble, this legislation
40   takes effect when approved.
                                        Page 1 - 130LR0711(01)
1                                        SUMMARY
2       This bill increases state-municipal revenue sharing to 5% from 3.75% in the final 6
3   months of fiscal year 2020-21. Current law restores state-municipal revenue sharing to 5%
4   beginning in fiscal year 2021-22.
                                      Page 2 - 130LR0711(01)
Statutes affected: 
Bill Text LD 328, HP 232: 30-A.5681