Budget & Taxes

LD 1553 proposes amending Maine's Constitution to require a two-thirds vote in both legislative chambers to raise existing tax rates or impose new taxes. Currently, legislative consent is required for taxes, but this bill would strengthen that requirement by mandating a supermajority vote instead of a simple majority. The amendment would also allow tax changes to be approved through direct citizen initiative (a public vote) as an alternative to the legislative supermajority. This resolution must be approved by the legislature and then ratified by Maine voters in a statewide election to become part of the state constitution. If adopted, it would directly affect how the legislature passes tax-related legislation.

LD 1292 codifies a requirement for the Maine Turnpike Authority to transfer excess funds to the Highway Fund on a quarterly basis. It specifies that any revenues or reserves held by the Authority exceeding its approved operating budget, maintenance reserves, debt service obligations, and legislatively approved capital projects must be sent to the Highway Fund. This directly affects the Authority’s financial management and the Highway Fund, which funds state transportation projects. The bill aligns with the Sensible Transportation Policy Act by directing excess turnpike revenues toward broader highway needs rather than remaining within the Authority’s reserves.

LD 278 eliminates the tobacco products tax on items containing nicotine but not tobacco, such as certain nicotine-only e-liquids or nicotine salts. The bill amends Maine's tax code by revising the definition of "tobacco products" to exclude products that contain nicotine without tobacco, while maintaining taxes on traditional tobacco products and nicotine-containing e-cigarettes. This change directly affects manufacturers and retailers selling nicotine products without tobacco, removing their tax obligation under current law. The bill does not alter existing taxes on products like cigars, snus, or e-cigarettes that contain nicotine. (Bill: LD 278, Maine Legislature 2025)

LD 1013 requires Maine municipalities to hold a voter referendum before issuing bonds totaling $10 million or more. This directly affects all cities, towns, and local governments planning large-scale borrowing projects. The bill mandates that the referendum must be held on the first Tuesday in November, following existing procedures outlined in state law. It aims to give residents a direct vote on significant debt that could impact local taxes and public spending. The policy change applies to all municipal debt exceeding the $10 million threshold, not to smaller projects or existing bonds.

This bill modifies how Maine municipalities calculate their annual property tax levy limits. It requires the State Treasurer to post annual revenue forecasts by April 15th to help towns plan budgets, and establishes a new formula using "average personal income growth" and a "property growth factor" to set the tax limit. The tax limit for a municipality is now based on the previous year's levy multiplied by one plus this growth factor, directly affecting all Maine towns and cities that set property taxes. The changes aim to provide clearer, data-driven guidance for municipal budgeting.