122nd Legislature

At the time of this writing, the lawmakers of the 122nd/second session are gearing up for a push to the finish. There is a statutory adjournment date of April 19 looming. During this 90-day session, ACEC of Maine has been closely tracking several tax reform proposals. Those that remain alive at this time are as follows:

LD484 An Act To Enact the Tax Fairness Act. The bill was voted out of the Taxation Committee with a divided “majority ought to pass as amended” report. The legislature’s new title “An Act To Provide for an Advisory Referendum Tax Restructuring,” if enacted, would submit to the voters in November 06 the question of whether they favor repealing certain sales tax exemptions in order to provide income tax relief and property tax relief in a revenue-neutral manner. The concern for A/Es would be since they have never been taxed could they be considered exempt and then repealed?

LD1605 An Act To Reform the Income Tax for Middle-income and Lower-income Families. This bill, sponsored by Sen. Stimling, specifically adds engineering and architectural services to the sales tax base. Currently the proposal is unfinished business in the Taxation Committee and is without at vote.

LD2075 An Act To Create the Taxpayer Bill of Rights (citizens petition) has been referred to the Taxation Committee. This proposal, modeled after a Colorado law and called TABOR, seeks to limit increases in state and local government spending to the rate of inflation plus population growth and requires a two-thirds voter approval for all tax and fee increases. If this tax cap were to pass, it would severely restrict a municipality’s ability to make spending decisions such as school construction, libraries and roads.

Remember, during the session, you can view the A/E Task Force's Legislative Status Chart at www.acecmaine.org (Legislative Affairs section). Contact Judith Harvie for your password.

For more information about ACEC of Maine, please contact:
Paul Lariviere
Executive Director
Email: paullariviere@mainetomorrow.com