LEWISTON — More than 20 states raised income, sales, or alcohol and cigarette excise taxes in 2009 to help balance their budgets, but Maine was not one of them.

The tax changes were tallied by a report released Monday by the Tax Foundation, a conservative think-tank based in Washington, D.C.

The group highlights Maine as one of five states to reduce income taxes — though enactment of the reform package, which was scheduled to take effect Jan. 1, has been delayed by a group hoping to repeal the law. The reform package lowers the state income tax from 8.5 percent to 6.5 percent for most Mainers and pays for the reduction by expanding the state's 5 percent sales tax to previously untaxed items, mostly amusements, such as movie tickets.

Nine states increased their income taxes, according to the report, including California, Connecticut and New York. Five states and the District of Columbia increased their sales tax, including Massachusetts, which went from 5 percent to 6.25 percent.

Fifteen states, the District of Columbia and Puerto Rico also increased excise taxes on cigarettes, on top of a 61-cent federal increase. Five states also hiked alcohol excise taxes, including Massachusetts.

A group of public health advocates and Maine students gathered in Augusta on Monday to lobby for increasing Maine's cigarette tax by $1 per pack. Maine's current cigarette excise tax is $2 per pack, according to the Tax Foundation.

Some states increased their taxes in more than one category, including California, Connecticut, New York, New Jersey and Massachusetts.

The Tax Foundation report criticized the tax increases in its report.

“Their revenue sources may provide short-term relief but can cause substantial economic harm to the state economy in the medium and long term,” the report said.

To compare taxes in different states, visit www.taxfoundation.org/taxdata/.

 

 

rmetzler@sunjournal.com

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