Sweeping Maine Tax Reform Proposal Announced

A bipartisan group of 11 legislators have proposed an overhaul of Maine's tax system, including major changes to the individual and corporate income tax, property tax, sales tax, and estate tax.  The goal of the overhaul is to export more of the state's tax burden to non-residents, thereby reducing the tax burden on Mainers and attracting individuals and businesses to the state.  If enacted, the overhaul would have significant changes for Maine businesses.  Although the actual statutory language of the proposal has not yet been drafted, the following is a summary of the key components of the plan.

Property Tax

• Maine residents would receive a $50,000 homestead exemption
• The exemption for non-profit entities, other than churches, would be reduced from 100 percent to 75 percent