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In 1971 the Maine Legislature enacted a law requiring the state to share with cities and towns monies collected through sales and income tax. Because the amounts of money collected changes from year to year, the percentage shared has changed. It has gone from a low 2% to to all time high of 5.2%. This money has been used by municipalities to offer tax breaks to their communities. Unfortunately, 2005 was the last year that the state shared the full percentage of monies collected and in the years between 2006 and 2015, $320 million dollars in revenue sharing funds was transferred into the states general fund. In 2016 the amount the state was required to share was reduced to 2% which meant that an additional $387 million was transferred to the states general fund through 2019. The good news is that we have a Governor who recognizes the importance of these funds being shared with municipalities and the impact not receiving this funding means. Now we need to work together to ensure that 5% of state sales tax and income tax collected is shared so that cities and towns can get back to the work of running their communities.
In 1971 the Maine Legislature enacted a law requiring the state to share with cities and towns monies collected through sales and income tax. Because the amounts of money collected changes from year to year, the percentage shared has changed. It has gone from a low 2% to to all time high of 5.2%. This money has been used by municipalities to offer tax breaks to their communities. Unfortunately, 2005 was the last year that the state shared the full percentage of monies collected and in the years between 2006 and 2015, $320 million dollars in revenue sharing funds was transferred into the states general fund. In 2016 the amount the state was required to share was reduced to 2% which meant that an additional $387 million was transferred to the states general fund through 2019. The good news is that we have a Governor who recognizes the importance of these funds being shared with municipalities and the impact not receiving this funding means. Now we need to work together to ensure that 5% of state sales tax and income tax collected is shared so that cities and towns can get back to the work of running their communities.
(Municipal Matters, The Revenue Sharing Program. (2019). Legislative Bulletin, XLI(3).)
(Municipal Matters, The Revenue Sharing Program. (2019). Legislative Bulletin, XLI(3).)
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