Review of Sales Tax Exemptions

COMMITTEE STUDY REQUEST

JOINT STANDING COMMITTEE ON TAXATION

1. Topic, policy area or nature of the problem to be studied

Statutory review of sales tax exemptions contained in Title 36 Maine Revised Statutes Annotated, Section 1760, subsections 11 to 30, required by 36 MRSA chapter 9.

2. Description of the tasks to be completed

The Committee will complete the following tasks:

1. Review previous statutory reviews of sales tax exemptions and other recent studies related to sales tax exemptions in Maine

2. Analyze each sales tax exemption according to the factors identified in the statute requiring review

3. Seek and review information from the Bureau of Revenue Services and the public regarding the cost and impact of sales tax exemptions

4. Hold a public hearing in Augusta to solicit comments from the public regarding the provisions subject to review.

5. Prepare and submit a report and legislation containing the recommendations of the Committee.

3. The proposed chair or chairs

The Taxation Committee Chairs will chair the review process.

4. Number and identification of the members who will serve on the study

All 13 members of the Taxation Committee

5. Proposed study budget and work plan

We are not requesting separate meetings for this review. The Taxation Committee reviewed all sales tax exemptions last Spring, and we do not anticipate any major differences from our work at that time. Therefore, we anticipate that we can complete this obligation by reserving a portion of time at the conclusion of meetings authorized for other studies during this interim.

Funds are requested for one public hearing.

6. Number of and anticipated location of any public meetings to be held

The Statute requires one public hearing. It would be held in Augusta. No additional meetings are requested.

7. Anticipated convening and completion dates of the study

The Committee will begin work in the September and will complete the review by the statutory reporting date of January 1, 2000.

8. Staff effort

We request the assignment of a nonpartisan staff member to assist us with this effort.