Budget Agreement Details Released

On June 15, 2015, legislative leaders in the Maine House and Senate reached an agreement on a two-year budget that begins on July 1, 2015, thus avoiding a state shutdown. Below are the details of the agreement. The amended budget agreement will:   1) Keep itemized deductions but charitable contributions are now counted against the itemized deduction cap   2) Increase single standard deduction to $11,600 in 2016, adjust annually for inflation.   3) Phase out taxpayer’s deduction (standard or itemized); for single the phase out range is between $70,000 and $145,000 of Maine Adjusted Gross income. The phase out starting point is adjusted for inflation beginning in 2018.   4) Tax Brackets for Single, in 2016:   $0-21,050: 5.8% (Standard deduction up to $11,600)   $21,051 – $37,500: 6.75%   $37,501 and higher: 7.15%   Tax Brackets for Single, in 2017:   $0-21,050: 5.8% (Standard deduction up to $11,600)   $21,401 – $50,000: 6.75%   $50,001 and higher: 7.15%   ***Note that these brackets are based on taxable income with the new, increased standard deduction and will be indexed for inflation starting in 2018.   5) Take Sales Tax Fairness Credit in budget, reduce credit before phase out 60%, start single phase out at $20,000 instead of $15,000, but phase out at the same rate as in budget.   6) Military pensions completely exempt; no change to $10,000 retirement deduction   7) Long-term care premium and Section 529 Plan contribution subtraction modifications eliminated; addition modifications unchanged   8) $15,000 homestead for all in property tax year 2016; state reimburses 50% of additional $5,000; $20,000 homestead for all starting...

Senate President’s Bill Would Allow Amish Hunters to Wear Red

 AUGUSTA – Maine Senate President Michael Thibodeau (R-Waldo) today submitted a bill that would allow some hunters to wear red instead of the standard orange while hunting in Maine. The Amish faith prohibits the use of bright colors, but Amish hunters are currently forced to use the bright, fluorescent hunter orange to comply with safety regulations. The bill, LD 1430, “An Act to Allow Hunters Whose Religion Prohibits Wearing Hunter Orange Clothing to Instead Wear Red,” is currently in front of the Maine Legislature’s Inland Fisheries and Wildlife Committee. Senate President Thibodeau said, “Hunting is an integral part of Maine’s culture, and many of our Amish citizens are avid hunters. They just want to have the same opportunities as other hunters in Maine. “But the requirement to wear fluorescent orange while hunting conflicts with their religious beliefs, and I believe we can remedy that in the Legislature while at the same time maintaining high hunting safety standards in Maine.” The Inland Fisheries and Wildlife Committee is expected to vote on LD 1430 soon. Once that happens, the bill will go before the full Legislature. # # #  ...

Maine Senate President Says Tech Company Expansion Great News for Waldo County

Belfast – Maine Senate President Michael Thibodeau (R-Waldo) said today that OnProcess Technology’s plan to expand in the City of Belfast and potentially hire hundreds of workers is great economic news for the entire region. OnProcess Technology works with businesses around the world, helping them manage their global supply chains. According to a news release, the company plans to begin hiring in Belfast immediately, and may eventually add up to 350 new jobs. “OnProcess is an outstanding company that is on the cutting edge of the latest technology. They are an excellent fit for Waldo County where they will find highly qualified, motivated job candidates. “This is great economic news for the entire region. I would like to thank OnProcess Technology for choosing Maine for their expansion and welcome them to our great state!” OnProcess will locate in the former MBNA office buildings along Route 3. OnProcess Technology will be holding job fairs on May 20, from 10am to 7pm and on May 21, from 9am to 5pm at the Hutchison Center at 80 Belmont Ave. in Belfast. For more information, visit www.onprocess.com/our-company/careers/.     ...

Republicans Release Proposal to Lower Tax Burden on All Mainers

AUGUSTA – Republican leaders in the Maine Legislature today unveiled a budget proposal that significantly reduces the income tax burden on all Maine citizens, keeps the current sales tax rate of 5.5 percent in place with no expansion of taxable items, and protects programs to help low-income Mainers. The Republican leaders’ plan reduces the income tax burden on Mainers by approximately $380 million over the next two year budget cycle, while keeping the current revenue sharing rates to municipalities the same. Under the Republican proposal, the highest marginal tax bracket would not kick in until $50,000 in taxable income, which would create a significant tax cut for Maine’s middle class. Other highlights of the proposal include: Keeping itemized deductions Lowering the corporate tax rate Exempting military pension income tax Safeguarding tax exemption for non-profits Keeping Homestead property tax exemption Mirroring the Governor’s plan to eliminate the estate tax Republican leaders said they believe that this proposal is a solid framework to build the necessary support from both parties to pass a two-year budget. Senate President Michael Thibodeau (R-Waldo) said, “This is a commonsense proposal that I believe will have strong support in the Legislature. Mainers deserve tax relief, and a simplified tax code. This plan does not include complicated bureaucratic rebate programs. Instead, it allows Mainers to keep their money without having to apply for it by filling out a form and waiting for their check to arrive.” House Republican Leader Ken Fredette (R-Newport) said, “We fully support our Republicans on the Appropriations Committee as they work through a complicated process of putting together a state budget. We share...

Senate Republican Leaders Say Funding Will Support Maine’s Disabled- Call Democrats’ Grandstanding in Senate Unfortunate

AUGUSTA – Maine Senate Republican leaders today applauded the Governor’s commitment to include funding for adaptive equipment to help Mainers with disabilities in the state’s two-year budget, as well as funding for non-profits. LD 48 “An Act to Reduce Registration Fees and Excise Taxes for For-hire Vehicles with Adaptive Equipment Enabling Access by Persons with Disabilities,” went before the Maine Senate today, as did LD 13, “An Act to Provide an Exemption for Sales Tax and Service Provider Tax to Nonprofit Collaboratives of Libraries.” The bills were vetoed when they became unnecessary, because funding for the programs was included in the Governor’s change package to the biennial budget proposal. Republicans in the Legislature are committed to governing effectively and efficiently. There is no need to duplicate these efforts when there’s already funding that will be included in the state budget. Senate President Michael Thibodeau (R-Waldo) said, “It gives me great satisfaction to know that we in the Legislature are doing what we can to help those with disabilities. They are the folks we should be trying to help. “I was disappointed to see Democratic leadership trying to unravel these efforts in order to score political points. Mainers don’t care about inside baseball. They care about results.” Senate Majority Leader Garrett Mason said, “I had hoped that on issues that are as important as these that we would be able to avoid political bickering and do what’s right for those we serve. In the end, we got it right, and important programs will receive the funding they need.”  ...