An Act To Increase The Percentage Of Funds Provided To Municipalities Through State-Municipal Revenue Sharing

This bill increases Maine's state-municipal revenue sharing by raising the percentage of specific tax revenues allocated directly to towns and cities. Starting January 1, 2026, municipalities will receive 5.5% of monthly tax receipts from certain state taxes (including sales and excise taxes), increasing to 6% beginning January 1, 2027. Twenty percent of each month's allocation must be sent to the Disproportionate Tax Burden Fund for distribution to municipalities facing higher tax burdens relative to their revenue. The change affects all Maine municipalities receiving state revenue sharing funds, providing them with more predictable and increased annual funding.