AUGUSTA, Maine (AP) - Elected officials across Maine have alleged that the state has breached its contract with their municipalities by keeping tax revenues intended to reduce pressure on local property taxes.
The Portland Press Herald reports (https://bit.ly/2nVUxLJ ) the accusations were levied during legislative hearings in Augusta on several proposed bills that would again require Maine to return 5 percent of state tax revenues to cities and towns.
Republican Gov. Paul LePage’s administration is seeking to permanently cap the state’s revenue sharing program at 2 percent while lowering income tax rates and eliminating a 3 percent surcharge on more wealthy residents.
The state under the 44-year-old program is required to provide percent of sales, income and corporate taxes to municipalities, but that threshold hasn’t been met in more than a decade.
___
Information from: Portland Press Herald, https://www.pressherald.com
Please read our comment policy before commenting.