Here’s an overview of how the three tax reform plans pending before the Legislature compare:
INCOME TAX RATE
Current law: 7.95 percent for people earning $20,900 or more; 5.5 percent for people earning between $5,200 and $20,899; 0 percent for people earning $0 and 5,200.
LePage: 5.75 percent top rate and bottom rate, 6.5 percent for “middle income earners”; 5.75 percent rate kicks in for people earning between $9,700 and $49,000; 6.5 percent kicks in at $50,000 to $174,999; 5.75 percent kicks in for people earning $175,000 or more.
Democrats: 7.95 percent rate for people earning $150,000 or more, 7.5 percent for people earning $50,000 or more, 6.5 percent for people earning $25,000 or more, 6 percent for people earning $5,200 or more.
Republicans: 6.75 percent for people earning more than $50,000 next year, falling to 6.5 percent in fiscal year 2017, 6.25 percent for people earning between $5,201 and $50,000 next year, falling to 5.95 percent in fiscal year 2017, 0 percent for people earning between $0 and 5,200.
SALES TAX
Current law: 5.5 percent, falls to 5 percent on July 1, 2015
LePage: 6.5 percent
Democrats: Maintain current temporary rate of 5.5 percent
Republicans: Maintain current temporary fate of 5.5 percent
MEALS TAX
Current law: 8 percent, falls to 7 percent on July 1, 2015
LePage: Decrease to 6.5 percent
Democrats: Maintain 8 percent
Republicans: Increase to 9 percent
LODGING TAX
Current law: 8 percent, falls to 7 percent on July 1, 2015
LePage: Maintain 8 percent
Democrats: Maintain 8 percent
Republicans: Increase to 9 percent
SHORT-TERM RENTAL TAX
Current law: 10 percent
LePage: 6.5 percent
Democrats: Maintains current rate
Republicans: Maintains current rate
SALES TAX BASE EXPANSION
LePage: Has proposed expanding the sales tax to a number of goods and services to generate $119 million in annual revenue.
Democrats: Have also proposed expanded sales tax base, but not as much. Expected to generate $100 million in annual revenue.
Republicans: Do not expand the sales tax base.
HOMESTEAD PROPERTY TAX EXEMPTION
Current law: $10,000 for a permanent resident who has owned a homestead for 12 months
LePage: Increases exemption to $20,000 for persons 65 and older, eliminates for people below 65.
Democrats: $20,000 for all eligible homeowners
Republicans: Maintain current exemption
REVENUE SHARING
Current law: Takes 5 percent of income tax, sales tax and a portion of service provider tax revenues for state aid to municipalities
LePage: Provides $62.5 million in fiscal year 2016 and eliminates the revenue sharing thereafter
Democrats: Increases revenue sharing by 2.5 percent to provide $77 million annually.
Republicans: Maintain current level of funding, $62.5 million in fiscal year 2016
Send questions/comments to the editors.
Success. Please wait for the page to reload. If the page does not reload within 5 seconds, please refresh the page.
Enter your email and password to access comments.
Hi, to comment on stories you must . This profile is in addition to your subscription and website login.
Already have a commenting profile? .
Invalid username/password.
Please check your email to confirm and complete your registration.
Only subscribers are eligible to post comments. Please subscribe or login first for digital access. Here’s why.
Use the form below to reset your password. When you've submitted your account email, we will send an email with a reset code.