Capping some tax breaks for business development – but not extending the sales tax to services – are part of a report on finding $40 million in tax savings.
A special study group had initially showed interest in extending the sales tax to personal services and amusements but decided it would be very difficult to get legislative approval for the tax expansion. Voters in June 2010 soundly rejected a measure that included expanding the sales tax to virtually all services.
Recommendations for possible tax savings include: 1) dropping retailers from the Business Equipment Tax Reimbursement program (BETR), 2) eliminating income tax credits in the Pine Tree Development Zone program, and 3) eliminating some research and development tax credits.
The group’s report will be submitted to the Appropriations Committee for action in the 2014 legislative session.
Legislators are concerned about further cuts in municipal revenue sharing.
In a survey of NFIB members last spring 96% said they believe municipalities do not do enough to cut inefficient spending and duplicative services. In their view raising tax revenues to prop up municipal spending practices is the wrong way to go.