AUGUSTA, Maine (AP) — Legislative panels at the Maine State House are advancing two significant tax measures.
Under one, a Democratic-backed proposal from the Taxation Committee, Maine’s sales tax would be broadened to cover new services but held steady at 5 percent, while the top income tax rate would drop from 8.5 percent to 6.5 percent.
The Democrat-dominated Taxation Committee split along party lines in voting Monday.
Meanwhile, the Transportation Committee split over a proposal to impose a 5-cent-a-gallon surcharge on gasoline and diesel fuel taxes for two years beginning July 1.
A couple of Republicans joined the Democratic majority on that tally Monday, but several House Republicans were opposed.
Further negotiations are possible on both measures before voting in the full Legislature begins.
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