AUGUSTA, Maine (AP) — A proposal to delay for a year the implementation dates of Maine’s tax-reform law is near final approval in the Legislature. Gov. John Baldacci supports the bill.
The tax-reform law enacted last year extends Maine’s sales tax to a number of currently untaxed services and lowers the state’s top income tax rate. But a Republican-backed people’s veto effort was launched and voters will decide this June whether to repeal the law. Because of the pending referendum, the tax law was suspended.
The bill before the Legislature says a $50 million hole will appear in the state budget if voters keep the law and it’s implemented without adjustments to its effective dates.
Some Republicans say that the bill could be seen as an attempt to influence voters before the referendum.