SUBCOMMITTEE TO STUDY
Updated 10/13/99
TAX VOLATILITY
No final report issued.
Membership:
Sen. Beverly C. Daggett, Senate Chair
Sen. Peter S. Mills
Rep. Kenneth T. Gagnon, House Chair
Rep. Patrick Colwell
Rep. John T. BuckStaff:
Julie Jones, Office of Fiscal and Program Review
Subcommittee Mission
Topic
A review of the relationship between Maine's tax system and the volatility of revenues that results in disproportionate revenue increases when the economy is performing well and disproportionate revenue decreases when the economy is performing poorly.
Description of Tasks to be Completed
1. The subcommittee will hold 3 meetings in Augusta.
2. The subcommittee will solicit information from appropriate sources, including the Bureau of Revenue Services, State Planning Office, institutions of higher education, public policy groups and NCSL relating to the reasons why Maine’s tax system is so volatile.
3. The subcommittee will gather information relating to the tax systems of other states that have demonstrated the ability to produce a more sustainable and reliable revenue stream, including gross receipts taxes and other alternative forms of taxation.
4. The subcommittee will discuss the opportunities and potential for making the transition in Maine to a less volatile revenue system.