Notable Legislation

• Reduce Pollution Associated with Transportation in Alignment with the State’s Climate Action Plan (LD 1138)
• Prohibit Businesses from Refusing to Accept Cash for In-person Payments (LD 1159)
• Comprehensively Protect Consumer Privacy (LD 1224)
• Protect Consumers by Licensing Residential Building Contractors (LD 1226)
• Study the Costs and Funding of a Universal Health Care Plan for Maine (LD 1269)
• Make Changes to the Paid Family and Medical Leave Benefits Program (LD 1333)

https://legislature.maine.gov

New and Increased Taxes Advocated

Legislators and their supporters are once again seeking to raise taxes through higher rates on upper-income families, local option sales taxes, and a higher real estate transfer tax.

• Adjust tax brackets and raise top rate from 7.15% to 8.20% (LD 229)
• Raise the top tax from 7.15% to 11.15% on capital gains above $250,000 for single filers or $500,000 for married joint filers (LD 1047)
• Increase the tax from 7.15% to 11.15% by imposing a 4% surtax on incomes above $1,000,000 (LD 1089)
• Increase the real estate transfer tax from $2.20 to $5 per $500 for real estate sales over $1,000,000 (LD 1082)
• Allow municipalities to adopt a 1% sales tax on prepared food and short-term lodging (LD 559)
• Allow municipalities to adopt a 2% sales tax on short-term lodging (LD 746)

The Mills Administration at public hearings to date has opposed tax hikes, citing a various objections including public policy concerns and potential increase in volatility of state finances.

Advocates of higher income taxes, citing misleading tax burden data, say it is time to make the wealthy “pay their fair share.” These advocates also say that higher income taxes do not have a significant impact on population migration.

Business interests note that Maine already has a high tax burden nationally and compared to other New England states, that increasing taxes will make it harder to attract investment in small businesses, and that focusing on a stronger economy will be better for state and local revenues, residents, and workers.

First Quarter Filing for Maine PFML Tax to Begin April 1

The Maine Department of Labor is reminding all employers with at least 1 employee must register for the Maine Paid Leave portal, and “submit wage reports and premiums,” by April 30.

Access the portal here – https://pfml.maine.gov/contributions/_/

Additional information about the PFML law and guidance for employers and employees may be found here: www.maine.gov/paidleave