The Maine House of Representatives has passed a revised version of a bill that, if enacted, would gradually reduced personal income tax rates in the future until there is a single rate of 4%. The rate reductions would be funded by excess revenue deposited into the Tax Relief Fund for Maine Residents. The original bill was passed by the Maine Senate (TAXDAY, 2012/03/20, S.14), but rejected by the House of Representatives (TAXDAY, 2012/03/30, S.8). However, the Senate then passed a revised version of the bill (TAXDAY, 2012/04/03, S.10). The revision lowered the percentage of excess revenue that would be transferred to the Tax Relief Fund for Maine Residents from 40% to 20% if the bill is enacted. The bill has now been sent back to the Senate for concurrence.
L.D. 849 (S.P. 252), passed by the Maine House of Representatives on April 9, 2012