STATE SENATE PASSES REVENUE SHARING BILL

Measure will help equalize tax base for hundreds of Maine communities

AUGUSTA—The Maine State Senate gave its final approval today for a measure that will help equalize the way the state distributes its revenue sharing to municipalities. The measure, sponsored by Senator Justin Alfond, received bipartisan support with a vote of 21 – 14.

“This is an issue of fairness and equity for Maine property taxpayers,” said Assistant Democratic Leader Sen. Justin Alfond of Portland. “Equalizing the tax base will put more money back in to the pockets of more Maine taxpayers.”

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.

“By targeting revenue sharing, it ensures that both rural and urban communities with higher mill rates can be attractive to businesses and families,” said Alfond. All communities across this state will be stronger as a result full funding to revenue sharing.”

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 the support of Maine Municipal Association and bipartisan support in the Taxation committee with a vote of 10 – 3. It now goes to the Governor for his signature to become law.