STATE SENATE GIVES INITIAL SUPPORT FOR EQUALIZING MUNICIPAL REVENUE SHARING

Measure would help equalize tax base for hundreds of Maine communities

AUGUSTA—The Maine State Senate gave initial support today for a measure that would help equalize the way in which the state distributes revenue sharing money to municipalities. The measure, sponsored by Senator Justin Alfond, received bipartisan support with a vote of 19 – 15.

“This is a simple and sure way to help property taxpayers in rural and urban communities across Maine,” said Assistant Democratic Leader Justin Alfond of Portland. “Equalizing our tax base at the municipal level will put more money back in to the pockets of more Maine taxpayers. This is an issue of fairness and equity.”

LD 1835, “An Act to Create Equity in Revenue Sharing” would adjust the revenue sharing mill rate would from 10 mills to the statewide average, thereby targeting those communities with significant mill rates above the state average, currently at 11.76 mills. In order for the mill rate to change, revenue sharing would need to be fully funded. This would create a boost for Portland and many other communities with significantly higher mill rates.

Revenue Sharing is a mechanism, established by the legislature, which allocates 5% of the state’s revenues and redistributes those funds to cities and towns all across the state. To further assist those communities with significantly higher mill rates, the legislature
established Revenue Sharing II “Rev II”, which allocates 17% of the total revenue sharing and distributes it among towns with mill rates above 10 mills.

The measure received bipartisan support in the Taxation committee with a vote of 10 – 3. It now faces further votes in the House and the Senate later this week.