AUGUSTA, Maine (AP) — The Maine Legislature has opened debate on a proposed overhaul of the state tax code.

The plan won majority backing in the House of Representatives on an initial vote, 84-59.

Under a plan endorsed by a party-line vote on the Democrat-dominated Taxation Committee, Maine’s 5-cent sales tax would be held steady but applied more broadly, while the top income tax rate would drop from 8.5 percent to 6.5 percent.

As out-of-state visitors pay more, Maine residents could save $55 million annually, according to tax department officials.

Senate prospects have been considered more uncertain.

A spokesman said Thursday Gov. John Baldacci hasn’t made up his mind on the measure and still has some reservations.


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