The Compendium of State Fiscal Information, updated on an
annual basis, provides a summary of the most important fiscal information
affecting Maine State Government. It includes
a summary of actual operating revenue and expenditures, descriptions of revenue
sources, and summaries of
Report Layout
This report presents information in 6 different
sections. The first section, the Introduction, presents an overview of
the report and some of the accounting methods used for the data included in this
report. The second section, Summary of Major Taxes and Revenue Sources,
provides brief summaries of the major taxes and revenue sources. Each summary includes a discussion of the
current tax rates, current fees and assessments or a description of the types
of revenue included in the category. Each
major revenue source includes a table providing a 10-year history of the
revenue generated. Most of the summaries
also include a history providing information on when the tax, fee, or
assessment was first adopted and the major amendments affecting that tax, fee,
or assessment. The third section, Revenues and Expenditures, provides exhibits
detailing revenues and expenditures of Maine State Government by major fund
type. The fourth section, Maine’s Bonded Debt, includes a summary
of
Accounting and
State Fiscal Year
The information in this report is presented on a budgetary basis, which summarizes all funds as they are recorded on the official accounting system maintained by the Office of the State Controller within the Department of Administrative and Financial Services. (Note: some minor adjustments have been made by the Office of Fiscal and Program Review to correct for certain data entry errors.) Revenue recognition and the amounts included in this report are based on a modified accrual basis of accounting. Revenues are recognized when they become both measurable and available. The major taxes subject to accrual are the individual income tax, sales and use tax and the telecommunications personal property tax. At the end of fiscal year 1999, fuel taxes and, at the end of fiscal year 2000, several additional taxes became subject to accrual. Revenues from other sources are recognized when received and expenditures are recorded when paid. The following table summarizes the major taxes that are subject to accrual and the amounts accrued for the last 5 fiscal years.
|
Fiscal Years 2003 - 2007 |
|||||
|
REVENUE SOURCE |
2003 |
2004 |
2005 |
2006 |
2007 |
|
Income
Taxes |
|
|
|
|
|
|
Individual Income Tax |
$60,819,780 |
$45,868,113 |
$49,841,992 |
$51,758,860 |
$58,382,364 |
|
Corporate Income Tax |
$2,483,700 |
$1,169,580 |
$1,500,000 |
$1,800,000 |
$3,300,000 |
|
Sales
and Use Taxes |
$85,052,032 |
$88,819,327 |
$88,234,996 |
$92,348,183 |
$95,663,824 |
|
Service
Provider Tax |
|
|
|
|
|
|
General Fund |
$0 |
$0 |
$4,351,569 |
$3,895,006 |
$4,262,070 |
|
Other Special Revenue Funds |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Estate
Tax |
$3,933,230 |
$5,520,171 |
$3,000,000 |
$5,871,996 |
$7,010,914 |
|
Tobacco
Products Tax |
$324,000 |
$317,169 |
$450,000 |
$500,000 |
$542,156 |
|
Cigarette
Tax |
$0 |
$0 |
$0 |
$0 |
$0 |
|
Telecommunications
Personal Prop. Tax |
$29,097,186 |
$27,903,428 |
$25,004,898 |
$20,627,030 |
$18,171,425 |
|
Real
Estate Transfer Tax |
$1,962,000 |
$2,319,480 |
$2,500,000 |
$3,000,000 |
$3,000,000 |
|
General Fund |
$981,000 |
$1,159,740 |
$1,250,000 |
$1,500,000 |
$1,500,000 |
|
Other Special Revenue Funds |
$981,000 |
$1,159,740 |
$1,250,000 |
$1,500,000 |
$1,500,000 |
|
Gasoline
Tax |
$13,479,460 |
$15,244,957 |
$16,201,336 |
$16,174,139 |
$16,529,053 |
|
Special
Fuel |
$5,400,000 |
$3,682,938 |
$4,516,027 |
$4,637,224 |
$5,853,002 |
Maine State Government’s fiscal year runs from July 1st to June 30th. References to fiscal year throughout this report will use the year in which the fiscal year ends, i.e., fiscal year 2007 refers to the fiscal year ending June 30, 2007.
Fund Accounting
The normal operations of Maine State Government are recorded and controlled on a fund basis in three major operating funds: General Fund, Highway Fund and Other Special Revenue Funds. The tables in Section III provide a summary of total revenues and expenditures of these three major operating funds. An additional table has been included in this year’s report, which provides a history of expenditures for all funds, see page 75.
General Fund
The General Fund is the primary operating fund of Maine State Government. It receives revenue from general state revenue sources not otherwise accounted for in another fund. The largest sources of revenue are from the Individual Income Tax, Sales and Use Tax, Cigarette Tax and Corporate Income Tax. These four major taxes account for more than 90% of General Fund revenue. The Graph and Tables on pages 80 to 83 provide a summary of revenues and expenditures of the General Fund.
Highway Fund
The Highway Fund is used to account for revenue derived from excise taxes and license and other fees relating to the registration, operation, and use of vehicles on public highways and from fuel used for the propulsion of these vehicles, with fuel taxes representing roughly two-thirds of Highway Fund revenue. Pursuant to the Constitution of Maine, Article IX, Section 19, this revenue must be used for highway related activities. This revenue is expended primarily within the Departments of Transportation, Public Safety and the Secretary of State (Bureau of Motor Vehicles). The Graph and Tables on pages 85 to 88 summarize the revenues and expenditures of the Highway Fund.
Other Special
Revenue Funds
Other Special Revenue Funds receive their revenues from segregated or dedicated sources. The funds are expended by category for special purposes. The state’s own source dedicated or special funds are segregated from the Federal Funds in this report and are referred to in this report as Other Special Revenue Funds. The Fund for a Healthy Maine (whose primary income source is Tobacco Settlement funds) is also included within this grouping. The graph and tables on pages 89 to 93 summarize the revenues and expenditures grouped under Other Special Revenue Funds. The revenue and expenditures of the Fund for a Healthy Maine are also detailed in 2 separate tables on page 93.
Federal Funds
A major revenue source within the broader definition of Other Special Revenue Funds is derived from the federal government, including federal matching funds and block grants. This report separates out these Federal Funds (Federal Expenditures Fund and Federal Block Grant Fund) from the state’s own source Other Special Revenue Funds. For the purposes of this report, the Federal Expenditures Fund and the Federal Block Grant Fund will be referred to as “Federal Funds.” The graphs and tables on pages 94 to 97 summarize the revenue and expenditures of the Federal Funds.
Other Funds
In addition to the operating funds that are listed above, there are numerous other funds that are used to record specific activities. The Debt Service Fund is used to account for issuance of general obligation debt and the use of general obligation debt proceeds as well as the revenue collected for the payment of principal and interest on certain revenue bonds. Capital Project Funds are used to account for financial resources used to acquire major capital assets other than those financed by proprietary funds. Proprietary funds are used to account for on-going activities supported by fees for goods or services, with Enterprise Funds accounting for activities offering goods and services to the general public and Internal Services Funds accounting for the offering of goods and services between state agencies. Fiduciary funds, including Expendable Trust Funds, Non-expendable Trust Funds and Agency Funds, are used to account for assets held by the state acting as a trustee or an agent for individuals, organizations or other funds. The table on page 75 provides a history of expenditures in these “non-operating” funds. Debt Service Funds and Internal Service Funds are included in this exhibit and are sub-totaled separately, but are excluded from the Total State Expenditures to avoid double-counting certain expenditures.
The information contained in this report was compiled from the following sources:
What’s New
Last year’s Compendium of State Fiscal Information added the following:
This year’s report includes the following changes:
SECTION II – SUMMARY OF MAJOR TAXES AND REVENUE SOURCES
This section contains summaries of the major tax and revenue sources. The summaries identify the tax base for each tax or the persons or entities required to pay each of the major license fees or assessments as of June 30, 2007. For those revenue sources that are not considered taxes, fees or assessments, a discussion or description of the major contributions are provided. The summaries also include a revenue history by fund of these categories. Most of these summaries also include a statutory history showing dates of adoption and the major amendments to the tax, fee or assessment.
INDIVIDUAL INCOME
TAX – 36 M.R.S.A Part 8
A tax is imposed for each taxable year on the
Withholding of Maine income tax from wages is required of every employer who maintains an office or transacts business in Maine and who makes payment of any wages subject to Maine income tax, whether or not the employee is a Maine resident. Every person who maintains an office or who transacts business in Maine and who makes payment of any other items of income which constitute Maine taxable income is also required to withhold Maine income tax from such payments if federal withholding is required.
Every partnership and S corporation having a resident
partner or shareholder or having
|
Individual
Income Tax |
|||
|
Fiscal Year |
General Fund |
Other Special Revenue Funds |
Total All Funds |
|
1998 |
$907,981,057 |
$0 |
$907,981,057 |
|
1999 |
$1,004,937,795 |
$0 |
$1,004,937,795 |
|
2000 |
$1,074,622,161 |
$2,298,681 |
$1,076,920,843 |
|
2001 |
$1,167,749,567 |
$2,128,874 |
$1,169,878,441 |
|
2002 |
$1,069,834,791 |
$2,975,316 |
$1,072,810,107 |
|
2003 |
$1,071,701,694 |
$3,124,465 |
$1,074,826,159 |
|
2004 |
$1,156,715,909 |
$3,312,152 |
$1,160,028,060 |
|
2005 |
$1,296,255,557 |
$2,996,659 |
$1,299,252,216 |
|
2006 |
$1,364,368,543 |
$4,558,216 |
$1,368,926,759 |
|
2007 |
$1,464,928,346 |
$4,367,042 |
$1,469,295,388 |
Revenue Notes – Individual Income Tax – Individual income tax collections accrue to the General
Fund. At the end of each month 5.1%
(increasing to 5.2% July 1, 2009) of this revenue is reserved for transfer to
the Local Government Fund for municipal revenue sharing. The
amounts in Other Special Revenue Funds are revenue set aside for reimbursement
to contractors/collection agencies under 36 M.R.S.A. §113. Individual income tax revenue began year-end
accruals of revenue in fiscal year 1996. The amounts presented above are the gross
amounts before the reductions for municipal revenue sharing and the transfers
for tax relief programs described below.
History – Individual Income Tax
Adopted 1969. Originally effective on July 1, 1969, for
individuals, estates and trusts. Amended
numerous times since enactment to alter the tax rates and other provisions. For individuals and fiduciaries, the tax rate
brackets, standard deduction and personal exemption were made subject to
indexing for inflation beginning in 1983 for each year except tax years 1988
and 1989. For tax years 1992 through
1999 the tax rate brackets and personal exemption were not adjusted for
inflation because the inflation factor was less than 1.000. Beginning in 1989, the standard deduction is
the same as the federal standard deduction except that for tax years beginning
in 2003 and thereafter, federal increases to the standard deduction for married
filers were not adopted. Amended in 1998
to increase the personal exemption to $2,400 in 1998 and $2,750 in 1999 and
indexed in subsequent years. Amended in
1999 to increase the personal exemption to $2,850 in 2000 and subsequent years
and repeal the indexing of the personal exemption.
INDIVIDUAL INCOME
TAX – TAX RELIEF PROGRAM TRANSFERS – 36 M.R.S.A. §6203-A & §6656
Beginning in fiscal year 2005, amounts representing the cost of property tax relief payments to individuals under the Maine Residents Property Tax Program (also known as the circuit breaker program) are transferred from individual income tax revenue to the “Circuit Breaker reserve” to pay benefits certified under that program. Prior to fiscal year 2005, benefits were paid from General Fund appropriations for that purpose.
Beginning in fiscal year 2006, amounts representing the cost of business personal property tax reimbursement payments under the Business Equipment Tax Reimbursement (BETR) program are transferred from individual income tax revenue to the “Business Equipment Tax Reimbursement reserve” to pay benefits under the BETR program.
|
Individual
Income Tax – Tax Relief Program Transfers |
|||
|
Fiscal Year |
General Fund |
General Fund |
Total All Funds |
|
Circuit Breaker Transfers |
BETR Program Transfers |
||
|
2005 |
($26,030,227) |
$0 |
($26,030,227) |
|
2006 |
($42,796,070) |
($67,065,810) |
($109,861,880) |
|
2007 |
($44,440,759) |
($66,553,092) |
($110,993,852) |
Revenue Notes – Individual Income Tax – Tax Relief
Program Transfers
For budgetary accounting
purposes, the transfers to the tax relief programs are deducted from Individual
Income Tax revenue prior to the calculation of the transfer to revenue sharing
so that these transfers reduce the transfers for municipal revenue sharing by
5.1% of the amount of the gross transfers.
History – Individual Income Tax – Tax Relief Program
Transfers
The Circuit Breaker transfer
mechanism was enacted by PL 2003, chapter 673, Part BB, effective for fiscal year
2005. The BETR program transfer
mechanism was enacted by PL 2005, chapter 12, Part BBB, effective for fiscal
year 2006.
Table II-1 State of
2007 Cost-of-living adjustment is 1.1365
|
Note: The 2007 tax rate schedule dollar bracket
amounts are adjusted by multiplying the cost-of-living adjustment, 1.1365, by
the dollar amounts of the tax rate tables specified in 36 M.R.S.A. §5111 subsections
1-B, 2-B and 3-B (see 36 M.R.S.A. §5403).
The personal exemption amount is not subject to the inflation
adjustment for tax year 2007. |
|
|
Tax Rate
Schedule #1 FOR SINGLE
INDIVIDUALS AND MARRIED PERSONS FILING SEPARATE RETURNS |
|
|
If the taxable income is: Less than $4,750 $4,750 but less than $9,450 $9,450 but less than $18,950 $18,950 or more |
The tax is: 2.0% of the taxable income $95 plus 4.5% of excess
over $4,750 $307 plus 7.0% of excess
over $9,450 $972 plus 8.5% of excess
over $18,950 |
|
Tax Rate
Schedule #2 FOR
UNMARRIED OR LEGALLY SEPARATED INDIVIDUALS WHO QUALIFY AS HEADS-OF-HOUSEHOLDS |
|
|
If the taxable income is: Less than $7,150 $7,150 but less than $14,200 $14,200 but less than $28,450 $28,450 or more |
The tax is: 2.0 of the taxable income $143 plus 4.5% of excess
over $7,150 $460 plus 7.0% of excess
over $14,200 $1,458 plus 8.5% of excess
over $28,450 |
|
Tax Rate
Schedule #3 FOR
MARRIED INDIVIDUALS AND SURVIVING SPOUSES FILING JOINT RETURNS |
|
|
If the taxable income is: Less than $9,500 $9,500 but less than $18,950 $18,950 but less than $37,950 $37,950 or more |
The tax is: 2.0% of the taxable income $190 plus 4.5% of excess
over $9,500 $615 plus 7.0% of excess
over $18,950 $1,945 plus 8.5% of excess
over $37,950 |
|
PERSONAL EXEMPTION: $2,850 |
|
|
STANDARD DEDUCTION: Single - $5,350 Head-of-Household - $7,850 |
Married Filing Jointly -
$8,900 Married Filing Separate -
$4,450 |
|
Additional Amount for Age or Blindness: $1,050 if married (whether
filing jointly or separately) or a qualified surviving spouse. The additional amount is $2,100 if one
spouse is 65 or over and blind, $2,100* if both spouses are 65 or
over, $4,200* if both spouses are 65 or over and blind, etc. *If married filing
separately, these amounts apply only if you can claim an exemption for your
spouse. $1,300 if unmarried (single
or head-of-household). The additional
amount is $2,600 if the individual is both 65 or over and blind. Note: If taxpayer can be claimed as a dependent
on another person’s return, the standard deduction is the greater of $850 or
earned income plus $300 (up to the standard deduction amount). |
|
CORPORATE INCOME
TAX – 36 M.R.S.A. Part 8
A corporate income tax is imposed on all corporations
subject to federal income tax and having nexus with
|
Corporate Tax Rates |
|
|
If the taxable income is: |
The tax rate is: |
|
$
0 but not over $ 25,000 |
3.50% |
|
$
25,000 but not over $
75,000 |
7.93% |
|
$
75,000 but not over $250,000 |
8.33% |
|
$250,000 or over |
8.93% |
Limited liability companies are taxed as partnerships or corporations according to the treatment elected by the company for purposes of the federal income tax.
|
Corporate Income
Tax |
|||
|
Fiscal Year |
General Fund |
Other Special Revenue Funds |
Total All Funds |
|
1998 |
$107,375,484 |
$0 |
$107,375,484 |
|
1999 |
$144,942,751 |
$0 |
$144,942,751 |
|
2000 |
$150,045,645 |
$0 |
$150,045,645 |
|
2001 |
$96,102,796 |
$180,000 |
$96,282,796 |
|
2002 |
$77,366,103 |
$0 |
$77,366,103 |
|
2003 |
$91,188,393 |
$0 |
$91,188,393 |
|
2004 |
$111,616,051 |
$0 |
$111,616,051 |
|
2005 |
$135,862,913 |
$0 |
$135,862,913 |
|
2006 |
$188,015,558 |
$0 |
$188,015,558 |
|
2007 |
$183,851,533 |
$0 |
$183,851,533 |
Revenue Notes – Corporate Income Tax
Corporate income tax
collections accrue to the General Fund.
At the end of each month, 5.1% (increasing to 5.2% July 1, 2009) of this
revenue is reserved for transfer to the Local Government Fund for municipal
revenue sharing. In fiscal year 2001,
the Other Special Revenue amounts reflects the revenue set aside for
reimbursement to contractors/collection agencies under 36 M.R.S.A. §113. Corporate income tax revenue began year-end
accruals of revenue in fiscal year 2000.
History – Corporate Income Tax
Adopted 1969. Originally effective January 1, 1969. Amended numerous times since enactment to
alter the tax rates and other provisions.
Amended by PL 2007, c. 240, Part V to change the apportionment formula.
FRANCHISE
The franchise tax on financial institutions is imposed
annually on every financial institution doing business in
Revenue Notes – Franchise Tax on Financial
Institutions
The franchise tax on
financial institutions is collected as part of the corporate income tax filing
process and accrues to the General Fund with 5.1% (increasing to 5.2% July 1, 2009)
transferred to the Local Government Fund for municipal revenue sharing. Revenue from this tax is included under
Corporate Income Tax. Separate detail is
not available.
History – Franchise Tax on Financial Institutions
Adopted 1983. Originally enacted with the corporate income
tax (P&SL 1969 c. 154). Financial
institutions were taxed at the same rate as corporations until 1984 when the tax
was changed to ½ of 1% of
SALES AND USE
TAXES – 36 M.R.S.A. chapters 211-225
Sales Tax – The sales tax is imposed at the rate of 5% of the sale price on retail sales of tangible personal property and the taxable services of transmission and distribution of electricity, prepaid calling arrangements and long-term automobile rentals or leases; at 7% on temporary rentals of living quarters in hotels, rooming houses, tourist and trailer camps, the sale of liquor by the drink and prepared food; and at 10% on the short-term rental of automobiles. The tax is also imposed on casual sales of motor vehicles, camper trailers, truck campers, livestock trailers, special mobile equipment, boats and aircraft. Sales of new manufactured housing (mobile homes and modular homes) are subject to the 5% tax, usually at 50% of the selling price. Beginning July 1, 2004, other services formerly taxed under the sales tax are taxed under the service provider tax described below.
Use Tax – The use tax is imposed at the same rate as
the sales tax on the sale price of tangible personal property and taxable
services purchased at retail sale beyond the collection jurisdiction of the state
for use, storage or other consumption in Maine, unless substantial (12 months)
use was made of the property elsewhere before it was brought to Maine. An exception is made for motor vehicles
registered as automobiles that were purchased and actually used in another
state before being brought to
|
Sales and Use
Taxes |
|||
|
Fiscal Year |
General Fund |
Other Special Revenue Funds |
Total All Funds |
|
1998 |
$833,755,683 |
($12) |
$833,755,672 |
|
1999 |
$814,321,914 |
($7) |
$814,321,907 |
|
2000 |
$847,355,504 |
$2,483 |
$847,357,987 |
|
2001 |
$817,781,460 |
$279,134 |
$818,060,594 |
|
2002 |
$836,134,084 |
($1) |
$836,134,082 |
|
2003 |
$857,486,801 |
$8,355 |
$857,495,156 |
|
2004 |
$917,243,245 |
$5,193 |
$917,248,437 |
|
2005 |
$896,576,322 |
$23,091 |
$896,599,413 |
|
2006 |
$946,174,276 |
$8,510 |
$946,182,786 |
|
2007 |
$971,455,721 |
$97 |
$971,455,818 |
Revenue Notes – Sales and Use Taxes
Sales and Use Tax collections
accrue primarily to the General Fund. At
the end of each month, 5.1% (increasing to 5.2% July 1, 2009) of this revenue
is reserved and transferred to the Local Government Fund for municipal revenue
sharing. The Other Special Revenue
Funds amounts represent transfers to the Passamaquoddy Sales Tax Fund and
transfers for collections agency costs pursuant to 36 M.S.R.A. §113. Some small amounts represent adjustments for
sales taxes collected by state agencies.
Sales and Use Tax revenue began year-end accruals of revenue in fiscal year
1998.
Originally enacted effective
July 1, 1951 at 2%. The following rate
changes have been implemented.
Sales Tax Rate History
|
Effective date of change |
General Rate |
Meals (incl. Liquor by drink)*** |
Short term lodging |
Short term autos |
|
7/1/51 |
2% |
* |
|
|
|
7/1/57 |
3% |
* |
|
|
|
9/1/59 |
“ |
* |
added* |
|
|
7/1/63 |
4% |
* |
* |
|
|
11/1/67 |
4.5% |
* |
* |
|
|
6/1/69 |
5% |
* |
* |
|
|
10/24/77 |
“ |
* |
* |
added* |
|
7/16/86 |
“ |
** |
7% |
7% |
|
8/1/91 |
6% |
7% |
“ |
|
|
8/1/94 |
“ |
“ |
“ |
10% |
|
10/1/98 |
5.5% |
“ |
“ |
“ |
|
7/1/00 |
5% |
“ |
“ |
“ |
* Included
in general rate
** Liquor
served by drink taxed at 10% from 12/1/89 to 8/1/91
*** Definition
of taxable “meals” has been amended from time to time.
History – Sales and Use Taxes (continued)
Amended to include taxation
of the following services:
|
Effective date of change |
Services added |
|
9/1/59* |
Short-term rentals of
living quarters |
|
7/1/65* |
Telephone and telegraph
service (now telecommunications service) |
|
10/24/77 |
Rental or lease of
automobiles |
|
12/15/84* |
Extended cable TV services |
|
7/16/86* |
Fabrication services and custom
computer programming |
|
8/1/89* |
Rental of video material
and equipment |
|
9/18/99 |
Prepaid calling
arrangements |
|
10/1/99* |
Rental of audio materials
and equipment |
|
10/1/99* |
Rental of furniture |
* Effective
7/1/04 all services except rental of living quarters, transmission and
distribution of electricity, auto lease or rental and prepaid calling services
were moved from the sales and use tax to the service provider tax
Amended many times since
enactment to add or repeal exemptions.
The 6% tax rate was reduced to 5 ½% on October 1, 1998 pursuant to the
operation of 36 M.R.S.A. §1811. PL 1999,
c. 698 repealed tax on snack food effective August 11, 2000. PL 2001, c. 439, Part TTTT set the rate on
all prepared food at 7% beginning October 1, 2001. PL 2001, c. 439, Part UUUU established the
Tourism Marketing Promotion Fund within the Department of Economic and
Community Development, Office of Tourism, which requires, effective July 1,
2003, that 5% of the 7% sales tax revenue collected in the prior fiscal year on
sales of meals and lodging, after the reduction for transfers to the Local
Government Fund, be transferred to the Tourism Marketing Promotion Fund. PL 2003, c. 673, Part V transferred taxation
of most services to the Service Provider Tax beginning July 1, 2004.
SERVICE PROVIDER
TAX – 36 M.R.S.A. – c.358
The service provider tax is imposed at the rate of 5% on the value of the following services sold in this state: 1) extended cable television services; 2) fabrication services; 3) rental of video media and video equipment; 4) rental of furniture, audio media and audio equipment pursuant to a rental-purchase agreement as defined in Title 9-A, section 11-105; 5) telecommunication services; 6) installation, maintenance or repair of telecommunications equipment; 7) private nonmedical institution services (PNMI’s); 8) community support services; 9) day habilitation services; 10) personal support services; and 11) residential training services.
|
Service Provider
Tax |
|||
|
Fiscal Year |
General Fund |
Other Special Revenue Funds |
Total All Funds |
|
2005 |
$44,645,517 |
$15,535,099 |
$60,180,616 |
|
2006 |
$47,028,430 |
$30,960,179 |
$77,988,609 |
|
2007 |
$49,400,532 |
$33,955,412 |
$83,355,944 |
Revenue Notes – Service Provider Tax
Service provider tax revenues
from above-listed services 1 to 6 accrue to the General Fund. At the end of each month, 5.1% (increasing to
5.2% July 1, 2009) of this revenue is reserved and transferred to the Local
Government Fund for municipal revenue sharing.
(See page 12 for more detail on these transfers.) Service provider tax revenues from
above-listed items 7 to 11 accrue to Other Special Revenue Funds accounts in
the Department of Health and Human Services and are used to fund MaineCare
services, with a part of the proceeds of the tax used to replace General Fund
appropriations for these purposes. The
General Fund portion of the Service Provider Tax has been subject to year-end
accrual since its implementation.
History – Service Provider Tax
Enacted in PL 2003, c. 673,
Part V effective July 1, 2004.
Above-listed services 1 to 6 were formerly taxed under the sales and use
tax. Amended in 2005 to include
community support services (PL 2005, c. 12, Part VV) and day habilitation
services, personal support services and residential training services (PL 2005,
c. 386, Part S).
TRANSFERS FOR
MUNICIPAL REVENUE SHARING – 30-A M.R.S.A. §5681
Transfers are made on the last day of each month from the General Fund to the Local Government Fund to set aside revenue to be distributed to municipalities to lessen the burdens on local property taxes. Amounts equal to 5.1%, increasing to 5.2% on July 1, 2009, of the taxes collected and credited to the General Fund under Title 36; Parts 3 and 8, the individual income tax, the corporate income tax, the franchise tax on financial institutions, a portion of the service provider tax and the sales and use taxes are transferred. The amounts in the Local Government Fund are distributed to municipalities on the 20th day of each month based on a formula factoring in property tax burden and population. An annual growth ceiling is established for the Local Government Fund equal to $100,000,000 for fiscal year 2005-06, adjusted for inflation. Amounts exceeding the annual growth ceiling are transferred to the Disproportionate Tax Burden Fund, which is also referred to as “Revenue Sharing II,” and distributed to municipalities with property tax mill rates over 10 mills based on a formula factoring in population and the portion of the property tax mill rate that exceeds 10 mills.
|
State-Municipal
Revenue Sharing |
|||
|
Fiscal Year |
General Fund |
Other Special Revenue Funds |
Total All Funds |
|
1998 |
($94,304,723) |
$89,495,308 |
($4,809,415) |
|
1999 |
($98,997,466) |
$111,924,140 |
$12,926,674 |
|
2000 |
($105,673,142) |
$105,697,654 |
$24,513 |
|
2001 |
($106,163,291) |
$105,733,382 |
($429,909) |
|
2002 |
($101,150,084) |
$101,150,084 |
$0 |
|
2003 |
($103,039,221) |
$103,039,221 |
$0 |
|
2004 |
($111,464,335) |
$111,469,714 |
$5,378 |
|
2005 |
($119,712,814) |
$119,712,814 |
$0 |
|
2006 |
($124,222,180) |
$124,222,180 |
$0 |
|
2007 |
($130,490,756) |
$130,069,834 |
($420,922) |
Revenue Notes – Transfers for Municipal Revenue
Sharing
The General Fund column shows
the amounts reserved and netted out of General Fund revenue from individual
income tax, corporate income tax, franchise tax on financial institutions,
sales and use taxes and a portion of the service provider tax. The Other Special Revenue Funds column shows
the amounts transferred to the Local Government Fund. Prior to fiscal year 1999, the amounts in
these tables were not equal due to the one-month lag between the reserving of
the revenue in the General Fund and the recognition of the revenue in the Local
Government Fund. Effective in fiscal year 1999, the State Controller began
recording transfers to the Local Government Fund during the same month in which
the amounts were reserved in the General Fund.
In fiscal year 1999, this represented a one-time increase of revenue to
the Local Government Fund of $15,746,438; the change did not affect the timing
or the amount of payments to municipalities.
Prior to fiscal year 1999, the difference in any fiscal year is equal to
the amount of revenue reserved in June from the “revenue sharing” taxes of that
fiscal year compared to the amounts reserved from those same taxes in June of
the prior fiscal year. After fiscal year
1999, the difference represents adjustments to prior period revenue that affect
these transfers.
History – Transfers for Municipal Revenue Sharing
First implemented by PL 1971,
c. 478. For fiscal years 1972 and 1973,
the distributions were provided by appropriations of $2,900,000 and $3,700,000,
respectively. Beginning July 1, 1973, 4%
of the collections of the individual income tax, corporate income tax,
franchise tax on financial institutions and sales and use taxes were set aside
for distribution to municipalities. PL
1981, c. 522, effective July 1, 1983, required in addition to the 4% that
$237,000 of sales and use tax receipts be transferred monthly to the Local
Government Fund for municipal revenue sharing.
Amended by PL 1983, c. 855 to increase the percentage from 4% to 4.75%,
effective June 30, 1984, and to increase the percentage again from 4.75% to
5.1%, effective July 1, 1985. PL 1991,
c. 780, part Q, effective August 1, 1992, eliminated the provision requiring
the transfer of the $237,000 per month or $2,844,000 annually from sales and
use tax receipts. The transfers to the
Local Government Fund were suspended for 6 months in fiscal year 1992 to
achieve approximately $32.5 million in additional General Fund revenue. This suspension was partially offset by a
General Fund appropriation of $14,400,000 in the same fiscal year. PL 2001, c. 559, Part G postponed to May 1,
2003 the increase to 5.2% originally schedule for January 1, 2003 by PL 2001,
c. 439, Part OO. PL 2001, c. 714, Part Y
further postponed the increase to 5.2% until July 1, 2003. PL 2003, c. 20, Part W further postponed the
increase to 5.2% until July 1, 2005. PL
2005, c. 12, Part E postponed the increase to 5.2% until July 1, 2007. PL 2005, c. 2, Part H rebased the annual
growth ceiling on the Local Government Fund.
PL 2007, c. 240, Part S postponed the increase to 5.2% until July 1,
2009.
ESTATE TAX – 36
M.R.S.A. c.575
The
|
Estate Tax |
|||
|
Fiscal Year |
General Fund |
Other Special Revenue Funds |
Total All Funds |
|
1998 |
$34,335,598 |
$6,200,000 |
$40,535,598 |
|
1999 |
$29,768,114 |
$0 |
$29,768,114 |
|
2000 |
$58,803,666 |
$0 |
$58,803,666 |
|
2001 |
$30,616,759 |
$0 |
$30,616,759 |
|
2002 |
$23,420,240 |
$0 |
$23,420,240 |
|
2003 |
$30,520,320 |
$0 |
$30,520,320 |
|
2004 |
$32,075,501 |
$0 |
$32,075,501 |
|
2005 |
$32,255,727 |
$0 |
$32,255,727 |
|
2006 |
$75,330,514 |
$0 |
$75,330,514 |
|
2007 |
$54,820,038 |
$0 |
$54,820,038 |
Revenue Notes – Estate Tax
Estate Tax collections accrue
to the General Fund with the exception of a one-time transfer of $6,200,000 in
fiscal year 1998 to a dedicated account, the Children’s Health Reserve Account,
that was established by PL 1997, c. 560, Part C. The Estate Tax began year-end accruals at the
end of fiscal year 2000.
History – Estate Tax
Adopted 1927. The current
CIGARETTE TAX – 36
M.R.S.A. c.703 & 22 M.R.S.A. §1546
The cigarette tax is imposed on all cigarettes held in this state for retail sale. The rate of the tax is 100 mills per cigarette or $2.00 per pack.
|
Cigarette Tax |
|||
|
Fiscal Year |
General Fund |
Other Special Revenue Funds |
Total All Funds |
|
1998 |
$42,875,264 |
$28,845,919 |
$71,721,183 |
|
1999 |
$74,858,953 |
$3,500,000 |
$78,358,953 |
|
2000 |
$74,933,325 |
$0 |
$74,933,325 |
|
2001 |
$74,357,622 |
$0 |
$74,357,622 |
|
2002 |
$94,081,937 |
$0 |
$94,081,937 |
|
2003 |
$94,397,943 |
$0 |
$94,397,943 |
|
2004 |
$92,625,638 |
$0 |
$92,625,638 |
|
2005 |
$91,906,017 |
$0 |
$91,906,017 |
|
2006 |
$151,497,467 |
$0 |
$151,497,467 |
|
2007 |
$152,957,212 |
$0 |
$152,957,212 |
Revenue Notes – Cigarette Tax
Revenue from the Cigarette
Tax accrues primarily to the General Fund.
This tax began year-end accrual of revenue in fiscal year 2000. PL 1997,
c. 560, Part A doubled the tax to 37 mills per cigarette or 74¢ per package of
20 and dedicated the revenue to the Tobacco Tax Relief Fund (22 M.R.S.A. §1546)
effective November 1, 1997. It also
required revenue transfers out of the Other Special Revenue Tobacco Tax Relief
Fund to support allocations made to the Tobacco Prevention and Control program
within the Department of Health and Human Services and transfers to the General
Fund in amounts equal to the budgeted amount of Cigarette Tax revenue in fiscal
years 1998 and 1999.
History – Cigarette Tax
Adopted 1941. PL 1941, c. 298, sec. 20 stated that the
revenue generated by the tax was appropriated for the payment of old age
assistance, less any expenses incurred in assessing the tax. PL 1945, c. 297 provided that the revenue
generated from the tax be credited to the General Fund. The table below summarizes the cigarette tax
rate changes.
|
Cigarette Tax Rate History Table |
|
Effective date of change |
Rate in mills per cigarette |
Rate per pack of 20 cigarettes |
|
6/1/41 |
1 |
$.02 |
|
7/1/47 |
2 |
$.04 |
|
7/1/55 |
2.5 |
$.05 |
|
7/1/61 |
3 |
$.06 |
|
7/1/65 |
4 |
$.08 |
|
7/1/67 |
4.5 |
$.09 |
|
6/1/69 |
6 |
$.12 |
|
7/1/71 |
7 |
$.14 |
|
7/1/74 |
8 |
$.16 |
|
9/23/83 |
10 |
$.20 |
|
10/1/89 |
15.5 |
$.31 |
|
1/1/91 |
16.5 |
$.33 |
|
7/1/91 |
18.5 |
$.37 |
|
11/1/97 |
37 |
$.74 |
|
10/1/01 |
50 |
$1.00 |
|
9/19/05 |
100 |
$2.00 |
TOBACCO PRODUCTS
TAX – 36 M.R.S.A. c.704
A tax is imposed on all tobacco products, other than
cigarettes, produced or imported for sale in
|
Tobacco Products
Tax |
||
|
Fiscal Year |
General Fund |
Total All Funds |
|
1998 |
$2,649,058 |
$2,649,058 |
|
1999 |
$2,891,201 |
$2,891,201 |
|
2000 |
$3,409,846 |
$3,409,846 |
|
2001 |
$3,144,209 |
$3,144,209 |
|
2002 |
$3,517,662 |
$3,517,662 |
|
2003 |
$4,016,527 |
$4,016,527 |
|
2004 |
$3,979,008 |
$3,979,008 |
|
2005 |
$4,444,687 |
$4,444,687 |
|
2006 |
$5,453,903 |
$5,453,903 |
|
2007 |
$5,996,254 |
$5,996,254 |
Revenue Notes – Tobacco Products Tax
Revenue from the Tobacco
Products Tax accrues to the General Fund.
Year-end accrual of revenue for this tax began at the end of fiscal year
2000.
History – Tobacco Products Tax
A similar tax at the rate of
20% of the retail sale price was in effect from July 1, 1947 to December 31,
1955. The tax on smokeless tobacco was
first imposed July 16, 1986 at a rate of 45% of the wholesale sales price. The rate was increased to 50% on October 1,
1989, 55% on January 1, 1991 and to 62% on July 1, 1991. The rate increased to 78% on October 1,
2005. The tax on other tobacco products
was first imposed July 16, 1986 at a rate of 12% of the wholesale sales
price. The rate was increased to 13% on
October 1, 1989, to 14% on January 1, 1991 and to 16% on July 1, 1991. The rate increased to 20% on October 1, 2005.
CIGARETTE &
TOBACCO PRODUCTS LICENSE FEES – 36 M.R.S.A. cc. 703-704 & 22 M.R.S.A.
c.262-A
The Department of Health and Human Services collects license
fee revenue associated with the wholesale and retail sale of cigarettes and
tobacco products. Each distributor doing
business in
Retail Tobacco License Fees
|
License Type |
Fee |
|
Retail Tobacco I – Less than 30% annual gross revenue from total cigarette/tobacco sales Retail Tobacco II – Between 30% and 50% of annual gross revenue from total cigarette/tobacco sales Retail Tobacco III – Greater than 50% of annual gross revenue from total cigarette/tobacco sales Seasonal Tobacco Vending Machine |
$100 $125 $150 $50 for the first fair location; $10 for each additional fair location $50 per machine |
|
Cigarette &
Tobacco Product License Fees |
|||
|
Fiscal Year |
General Fund |
Other Special Revenue Funds |
Total All Funds |
|
1998 |
$1,825 |
$17,720 |
$19,545 |
|
1999 |
$12,125 |
$18,700 |
$30,825 |
|
2000 |
$2,443 |
$44,458 |
$46,901 |
|
2001 |
$9,250 |
$21,664 |
$30,914 |
|
2002 |
$5,710 |
$7,485 |
$13,195 |
|
2003 |
($982) |
$6,155 |
$5,173 |
|
2004 |
$0 |
$8,462 |
$8,462 |
|
2005 |
$78,521 |
$1,725 |
$80,246 |
|
2006 |
$261,200 |
$2,800 |
$264,000 |
|
2007 |
$244,640 |
$11,337 |
$255,978 |
Revenue Notes – Cigarette & Tobacco Products
License Fees
Revenue collected by the
Bureau of Revenue Services through 2002 for the wholesale distribution of
cigarettes and tobacco products accrued to the General Fund. Fees for retail licenses collected by the
Department of Health and Human Services, Bureau of Health accrue as dedicated
revenue to the Bureau of Health through fiscal year 2004. Beginning in fiscal year 2005, the retail
license revenue accrues to the General Fund.
History – Cigarette & Tobacco Products License
Fees
Adopted 1941. Amended by PL 1985, c. 783 effective June 1,
1986 to add tobacco products distributors license. PL 1995, c. 470 effective September 29, 1995
established the retail license for cigarette and tobacco products with the
Department of Health and Human Services, Bureau of Health and set the fee at up
to $25. PL 2001, c. 526 repealed the
Bureau of Revenue Services distributor license fees effective July 2,
2002. PL 2003, c. 673, Part CC changed
the retail license from a one-time requirement to an annual requirement and
increased the maximum fee from $25 to $50.
PL 2005, c. 12, Part TT repealed the $50 maximum fee for a retail
tobacco license and required the Department of Health and Human Services to
establish a sliding-scale license fee based on the relative size of retail
tobacco licensees that generates the same total revenue that a $100 flat fee
would generate. Fees are established by
rule.
LIQUOR SALES AND
OPERATIONS – 28-A M.R.S.A. §88
Up until fiscal year 2004, the selling price of all spirits and fortified wine had been used to produce a state liquor tax which was deposited in the General Fund. The State Liquor Tax was formerly referred to as an Excise Tax on Spirits and was used to recover all liquor-related sales and operations costs of the Bureau of Alcoholic Beverages and Lottery Operations. As described below in more detail, this tax has been supplanted by the provisions of 28-A M.R.S.A. §88 which authorized a ten-year year lease with a private entity for the sales and distribution of spirits; this function and revenue source was formerly described and tabulated in the Liquor Taxes section of this report.
In July 2004, the state signed a ten-year lease with a private entity for the sale and distribution of spirits subject to price regulation by the Bureau of Alcoholic Beverages and Lottery Operations. Throughout the term, the private entity is guaranteed a gross profit baseline percentage of 36.8% of aggregate sales. Revenue sharing with the state is determined on a calendar year basis when profits exceed 36.8% at which time an amount equal to 50% of the gross profit overage is transferred to the General Fund.
|
Liquor Sales and
Operations Revenue |
||
|
Fiscal Year |
General Fund |
Total All Funds |
|
1998 |
$20,546,162 |
$20,546,162 |
|
1999 |
$19,794,778 |
$19,794,778 |
|
2000 |
$23,226,758 |
$23,226,758 |
|
2001 |
$24,231,271 |
$24,231,271 |
|
2002 |
$25,168,524 |
$25,168,524 |
|
2003 |
$26,073,276 |
$26,073,276 |
|
2004 |
$102,182,743 |
$102,182,743 |
|
2005 |
$49,845,027 |
$49,845,027 |
|
2006 |
$2,560,044 |
$2,560,044 |
|
2007 |
$4,440,935 |
$4,440,935 |
Revenue Notes – Liquor Sales and Operation
Through fiscal year 2004, the
General Fund revenue in this category represents the net profits from liquor
sales and operations of the Bureau of Alcoholic Beverages and Lottery
Operations (BABLO) transferred to the General Fund. In fiscal year 2004, the General Fund amount
includes a $75,000,000 lease payment in addition to the transfers from BABLO. Fiscal year 2005 includes an additional
$50,000,000 lease payment.
History – Liquor Sales and Operation
The antecedent to the
specific Liquor Tax was originally authorized in 1934 with a tax markup
determined by the State Liquor Commission for the sale of spirits and wine by
the state. Amended in 1937 to provide a
tax at $2.08 per gallon on spirits and 50¢ per gallon on wine. Amended in 1941 to provide a tax markup of at
least 61% which was increased in 1955 to 65%, in 1967 to 75% of the “less
carload FOB warehouse price” and in 1994 to 65% of delivered case price. Amended in 1998 to set a list price for
spirits and fortified wine that would return an additional $3,000,000 in
General Fund revenue above accepted fiscal year 1999 estimates. Amended in 1999 to set the now-titled Liquor
Tax to generate an aggregate amount sufficient to return to the General Fund an
amount substantially equal to the amount collected in prior fiscal year. As a means of recovering liquor-related costs
for state government, the Liquor Tax has now been largely superseded by PL
2003, c. 20, Part LLL which authorized the state to contract with a private
entity for the right to distribute spirits for a period of ten years beginning
in fiscal year 2005, subject to price regulation by the Bureau of Alcoholic
Beverages and Lottery Operations.
LIQUOR TAXES –
28-A M.R.S.A. Part 4
State Liquor Tax – (28-A M.R.S.A. §1651, Sub-§1). Up until fiscal year 2004, the selling price of all spirits and fortified wine had been used to produce a state liquor tax which was deposited in the General Fund. The State Liquor Tax was formerly referred to as an Excise Tax on Spirits and was used to recover all liquor-related sales and operations costs of the Bureau of Alcoholic Beverages and Lottery Operations. This tax has been supplanted by the provisions of 28-A M.R.S.A. §88 which authorized a ten-year lease with a private entity for the sales and distribution of spirits; this function and revenue source is now separately described and tabulated in the Liquor Sales and Operation section of this report.
Premium Tax – Spirits – (28-A M.R.S.A. §1703, Sub-§3) A premium is imposed at the rate of $1.25 per 100 proof gallon for all spirits sold in the state.
Malt Liquor Tax – (28-A M.R.S.A. §1652, Sub-§1). An excise tax is imposed on the privilege of
manufacturing and selling malt liquor in the state. The
Wine Tax – (28-A M.R.S.A. §1652, Sub-§2). An excise tax is imposed on the privilege of manufacturing and selling wine in the state. The Maine manufacturer or importing wholesale licensee must pay an excise tax of 30¢ per gallon on all wine other than sparkling wine manufactured in or imported into the state and $1 per gallon on all sparkling wine manufactured in or imported in to the state. In addition to this tax, a premium is imposed at the rate of 30¢ per gallon on all wine other than sparkling wine and 24¢ per gallon on all sparkling wine (see 28-A M.R.S.A. §1703, sub-§3). The tax on manufacture or importation of hard cider is 25¢ per gallon with a premium of 10¢ per gallon.
Low-alcohol Spirits Tax – (28-A M.R.S.A. §1365; 28-A
M.R.S.A. §1652, Sub-§1-A). An excise tax
is imposed on the privilege of manufacturing and selling low-alcohol spirits
products and fortified wines in the state.
The
|
Liquor Taxes |
||||
|
|
General Fund |
|
||
|
Fiscal Year |
Excise Tax - Beer & Wine |
Premium Tax - Beer & Wine |
Premium Tax - Spirits |
Total All Funds |
|
1998 |
$7,357,496 |
$3,318,633 |
$1,593,834 |
$12,269,963 |
|
1999 |
$7,466,815 |
$3,371,354 |
$1,461,174 |
$12,299,342 |
|
2000 |
$7,829,053 |
$3,527,197 |
$1,581,648 |
$12,937,898 |
|
2001 |
$7,771,928 |
$3,524,331 |
$1,628,788 |
$12,925,047 |
|
2002 |
$8,196,839 |
$3,672,891 |
$1,653,122 |
$13,522,852 |
|
2003 |
$8,344,712 |
$3,847,156 |
$1,676,392 |
$13,868,260 |
|
2004 |
$8,627,449 |
$3,997,459 |
$1,775,223 |
$14,400,130 |
|
2005 |
$8,707,404 |
$4,034,350 |
$1,691,881 |
$14,433,635 |
|
2006 |
$9,557,003 |
$4,255,169 |
$1,883,756 |
$14,777,779 |
|
2007 |
$10,626,704 |
$4,433,643 |
$1,915,563 |
$16,975,910 |
Revenue Notes – Liquor Taxes
Revenue from Liquor Taxes
accrues to the General Fund. The table
above provides detail for each of the Liquor Excise Taxes and Premium Taxes. Revenue pertaining to operating costs and
sales generated by the specific Liquor Tax and the subsequent leasing agreement
with a private entity for the distribution of spirits are now included in the
Liquor Sales and Operation section of this report.
History – Liquor Taxes
The antecedent to the
specific Liquor Tax was originally authorized in 1934 with a tax markup
determined by the State Liquor Commission for the sale of spirits and wine by
the state. Amended in 1937 to provide a
tax at $2.08 per gallon on spirits and 50¢ per gallon on wine. Amended in 1941 to provide a tax markup of at
least 61%, which was increased in 1955 to 65%, in 1967 to 75% of the “less
carload FOB warehouse price” and in 1994 to 65% of delivered case price. Amended in 1998 to set a list price for
spirits and fortified wine that would return an additional $3,000,000 in
General Fund revenue above accepted fiscal year 1999 estimates. Amended in 1999 to set the now-titled Liquor
Tax to generate an aggregate amount sufficient to return to the General Fund an
amount substantially equal to the amount collected in prior fiscal year. As a means of recovering liquor-related costs
for state government, the Liquor Tax has now been largely superseded by PL 2003,
c. 20, part LLL, which authorized the state to contract with a private entity
for the right to distribute spirits for period of 10 years beginning in fiscal
year 2005, subject to price regulation by the Bureau of Alcoholic Beverages and
Lottery Operations.
The tax on manufacture or
importation of malt liquor was originally enacted in 1933 at 5 1/3¢ per gallon,
$1.24 per barrel or varying rates per case based upon the number and volume of
bottles per case. Amended in 1969 to
remove wine from state sale and markup and impose tax at the same level in the distribution
process as for malt liquor. A tax on
manufacture and importation of wine at distribution level was enacted in
1969. A tax specific to fortified wine
was enacted in 1993 at a rate of $1 per gallon.
A tax specific to low-alcohol spirits was enacted in 1991 at a rate of
$1 per gallon and product tax of 30¢ per gallon.
The alcohol premium was enacted
in 1981 on spirits at the rate of 62 ½ ¢ per gallon, malt liquor at the rate of
5¢ per gallon, table wines at the rate of 15¢ per gallon and sparkling wine at
the rate of 12¢ per gallon. The premium
was doubled in 1986. A premium tax for
low-alcohol spirits was added in 1991 and fortified wine was added in 1993,
both at a rate of 24¢ per gallon.
Premium revenue was originally dedicated to alcohol prevention,
education and treatment. Revenue was
undedicated in 1990. 28-A M.R.S.A.
§1703, subsection 5 requires an appropriation to the Office of Substance Abuse
equal to premium revenues.
LIQUOR LICENSE
FEES – 28-A M.R.S.A. Part 3
In addition to the collection of beer and wine excise taxes, the Department of Public Safety collects a variety of license fees related to the selling and serving of alcoholic beverages. The Bureau of Liquor Enforcement regulates the operation of licensed premises and licenses approximately 6,000 liquor establishments and 300 agency stores. Table II-2 on the next page provides a comprehensive list of all fees collected by the Bureau of Liquor Enforcement. In addition to the fees listed in Table II-2, the bureau charges a $10 filing fee for all applications.
|
Liquor License
Fees |
||
|
Fiscal Year |
General Fund |
Total All Funds |
|
1998 |
$2,960,814 |
$2,960,814 |
|
1999 |
$2,904,977 |
$2,904,977 |
|
2000 |
$3,067,067 |
$3,067,067 |
|
2001 |
$3,000,776 |
$3,000,776 |
|
2002 |
$3,005,543 |
$3,005,543 |
|
2003 |
$3,273,618 |
$3,273,618 |
|
2004 |
$3,084,894 |
$3,084,894 |
|
2005 |
$2,998,742 |
$2,998,742 |
|
2006 |
$3,118,805 |
$3,118,805 |
|
2007 |
$3,307,496 |
$3,307,496 |
Revenue Notes – Liquor License Fees
Revenue from the Liquor
License Fees accrues to the General Fund.
History – Liquor License Fees
Most recently, liquor license
fees have been amended by PL 2001, c. 711 which established a fee for reselling
agents; PL 2001, c. 20 established a fee for certificates of approval for wine
manufacturers who ship less than 120 gallons per year.
* Note: Licenses I-XI require a $10.00 filing fee.
INSURANCE PREMIUM
TAX – 36 M.R.S.A. c.357
Every insurance company or association doing business or collecting premiums in this state is liable for a tax at the rate of 2% of gross direct premiums, (1% of long-term health care premiums) including annuity considerations, on all policies written in Maine, less allowable deductions. The tax on insurance placed in the surplus lines insurance market is 3%. The tax on qualified group disability plans is 2.55% for large domestic insurers and 1% for all other insurers. Every non-resident insurance company authorized to do business in this state is liable for a tax on all policies written in Maine at the Maine rate or the rate at which a Maine company would be taxed in the state or Canadian province where the non-resident company is domiciled, whichever is greater. Reduced rates are provided for captive insurers until 2007 when captive insurers become subject to the corporate income tax instead.
|
Insurance
Premium Tax |
||
|
Fiscal Year |
General Fund |
Total All Funds |
|
1998 |
$39,153,496 |
$39,153,496 |
|
1999 |
$37,742,517 |
$37,742,517 |
|
2000 |
$42,698,686 |
$42,698,686 |
|
2001 |
$43,576,502 |
$43,576,502 |
|
2002 |
$55,244,333 |
$55,244,333 |
|
2003 |
$71,078,089 |
$71,078,089 |
|
2004 |
$72,206,153 |
$72,206,153 |
|
2005 |
$75,669,053 |
$75,669,053 |
|
2006 |
$76,090,900 |
$76,090,900 |
|
2007 |
$74,427,506 |
$74,427,506 |
Revenue Notes – Insurance Premium Tax
Revenue from the Insurance
Premium Tax accrues to the General Fund.
History – Insurance Premium Tax
Adopted in 1874. The rate on domestic companies was increased
from 1% to 2% effective July 16, 1986.
Amended in 1989 to reduce the rate to 1% of long-term health care
premiums effective for tax years after 1988.
Amended by PL 1997, c. 496, for tax years commencing on or after 1/1/97,
to subject premiums on certain qualified group disability policies written by
every insurer, except a large domestic insurer, to a 1% tax. Premiums on such policies written by every
large domestic insurer are subject to a tax of 2.55%. PL 1997, c. 435 established reduced rates for
non-Maine captive insurance companies.
PL 2003, c. 20, Part CC clarified the application of the tax to
annuities. PL 2007, c. 240, Part KKKK
moved captive insurance companies from the insurance premium tax to the
corporate income tax.
FIRE INVESTIGATION
AND PREVENTION TAX – 25 M.R.S.A. §2399
Every insurance company or association doing business or collecting premiums or assessments in Maine is liable, in addition to the insurance company tax, for a tax at the rate of 1.4% of gross direct premiums for fire risks, less allowable deductions. These funds are used to defray expenses incurred by the Commissioner of Public Safety in fire prevention investigation and educating the public in fire safety and to defray the cost of fire training and education programs at the Maine Community College System (20-A M.R.S.A. Chapter 319).
|
Fire and
Investigation Prevention Tax |
||
|
Fiscal Year |
Other Special Revenue Funds |
Total All Funds |
|
1998 |
$2,109,489 |
$2,109,489 |
|
1999 |
$2,370,159 |
$2,370,159 |
|
2000 |
$2,163,052 |
$2,163,052 |
|
2001 |
$2,538,267 |
$2,538,267 |
|
2002 |
$3,256,319 |
$3,256,319 |
|
2003 |
$4,891,046 |
$4,891,046 |
|
2004 |
$3,652,172 |
$3,652,172 |
|
2005 |
$3,866,037 |
$3,866,037 |
|
2006 |
$3,867,755 |
$3,867,755 |
|
2007 |
$4,228,305 |
$4,228,305 |
Revenue Notes – Fire Investigation and Prevention Tax
Revenue from this tax accrues
as dedicated revenue to the Office of the State Fire Marshal within the Department
of Public Safety and to the Maine Community College System.
History – Fire Investigation and Prevention Tax
Adopted and first imposed
February 17, 1939 at 0.5%. Increased
October 3, 1973 to 0.6%. Increased
October 24, 1977 to 0.75%. Increased March
10, 1983 to 0.95%. Increased July 17,
1991 to 1.4%. PL 2001, c. 437
implemented a special assessment equal to 0.4% of gross direct premiums in
addition to the regular assessment in fiscal year 2002. P&S 2001, c. 67 added a special
assessment of 0.6% of gross direct premiums in fiscal year 2003 and capped the
revenue from the special assessment to $983,000 in fiscal year 2003 and allowed
a credit against insurance premium tax for the amount of the fiscal year 2003
special assessment after July 1, 20003.
PL 2003, c. 20, Part Y delayed the insurance premium tax credit until
after July 1, 2005.
INSURANCE
REGULATORY ASSESSMENTS AND FEES – 24-A M.R.S.A. §§237 & 601 & 24
M.R.S.A. §2332
Every insurance company or health maintenance organization licensed to do business in this state is subject to an annual assessment by the Bureau of Insurance. The assessment, not to exceed 0.2% of direct premiums written for any biennial period, is in proportion to the direct gross premium written on business in this state during the year ending December 31st immediately preceding the fiscal year for which an assessment is made. Similarly, every nonprofit hospital or medical service organization and nonprofit health care plans licensed to do business in the state is also assessed by the Bureau of Insurance. These annual assessments are based on subscription incomes and are not to exceed 0.015% of subscription income for any biennial period. The proceeds from each assessment process are used to support the costs of the Bureau of Insurance. There is a minimum assessment of $100.
In addition to the Insurance Regulatory Assessment, the Bureau of Insurance is also authorized to assess a number of other license, application, filing and other miscellaneous fees related to its regulation of the insurance industry. The current fee schedule is available from the Office of Fiscal & Program Review or from the Department of Professional and Financial Regulation website (http://www.maine.gov/pfr/insurance/company/retaliatory_statement.htm).
|
Insurance
Regulatory Assessments and Fees |
||
|
Fiscal Year |
Other Special Revenue Funds |
Total All Funds |
|
1998 |
$6,971,826 |
$6,971,826 |
|
1999 |
$1,683,834 |
$1,683,834 |
|
2000 |
$7,838,131 |
$7,838,131 |
|
2001 |
$3,649,511 |
$3,649,511 |
|
2002 |
$8,058,429 |
$8,058,429 |
|
2003 |
$3,610,681 |
$3,610,681 |
|
2004 |
$8,367,081 |
$8,367,081 |
|
2005 |
$3,345,493 |
$3,345,493 |
|
2006 |
$12,145,574 |
$12,145,574 |
|
2007 |
$2,117,571 |
$2,117,571 |
Revenue Notes – Insurance Regulatory Assessments and
Fees
Proceeds from insurance
regulatory assessments and other insurance license fees accrue as dedicated
revenue to the Bureau of Insurance. No insurance
regulatory assessments have been made since fiscal year 2000 due to available
balances accumulated to support Bureau of Insurance activities.
History – Insurance Regulatory Assessments and Fees
Adopted in 1985. PL 1993, c. 313 increased the assessment
amount for insurance companies from 0.15% to 0.2%. PL 1997, c. 79 included health maintenance
organizations in the assessment requirement of 24-A M.R.S.A. §237 which
formerly applied to insurance companies only.
WORKERS’
COMPENSATION INSURANCE ASSESSMENTS – 39-A M.R.S.A. §154
Each insurance company or entity that is authorized to write workers’ compensation policies in this state and that either does business or collects premiums or assessments pays an annual assessment to the Workers’ Compensation Board Administrative Fund which provides funding for the board’s administrative and operating costs. Assessments for insurance carriers are based on payroll times the filed manual rate times the employer’s current experience modification factor, if applicable. The only deductible credits that may be included in the calculation are for the $1,000 and $5,000 indemnity deductible and the $250 and $500 medical deductible per 24-A M.R.S.A. §2385 and §2385-A.
The assessment is levied by the Workers’ Compensation Board by May 1st of each year. The assessment is collected from employers by certain insurance companies beginning on July 1st of each year. Those insurance companies which have an estimated annual payment of more than $50,000 may pay the assessment on a quarterly basis on or before the last day of January and April, the 25th day of June and concluding on the last day of October. All insurance companies are required to file an adjusted annual return by September 15th for the previous fiscal year. Insurance companies with an annual assessment estimate of less than $50,000 are required to pay the entire assessment by June 1st of each year. Self-insured employers must pay the assessment on or before June 1st.
The assessments determined by the Board must be distributed between insurance companies or associations and self-insured employers in direct proportion to the pro rata share of disabling cases attributable to each group for the most recent calendar year for which data is available. By law, the assessments may not be designed to produce more than a set amount for any one fiscal year. In fiscal year 2006, the assessment cap was set at $8,525,000.
Assessments collected exceeding the assessment cap by a margin of more than 10% must be refunded to those who paid the assessment. Any amount collected above the board’s allocated budget and within the 10% margin must be used to create a reserve of up to ¼ of the board’s annual budget. Any collected amounts or savings above the allowed reserve must be used to reduce the assessment for the following fiscal year.
|
Workers' Compensation Insurance Assessments |
||
|
Fiscal Year |
Other Special Revenue Funds |
Total All Funds |
|
1998 |
$8,126,555 |
$8,126,555 |
|
1999 |
$6,921,706 |
$6,921,706 |
|
2000 |
$6,741,940 |
$6,741,940 |
|
2001 |
$6,614,809 |
$6,614,809 |
|
2002 |
$6,667,725 |
$6,667,725 |
|
2003 |
$4,017,799 |
$4,017,799 |
|
2004 |
$12,778,682 |
$12,778,682 |
|
2005 |
$8,638,815 |
$8,638,815 |
|
2006 |
$8,874,698 |
$8,874,698 |
|
2007 |
$6,370,295 |
$6,370,295 |
Revenue Notes – Workers’ Compensation Insurance
Assessments
Revenue from the workers’
compensation insurance assessments accrue as dedicated revenue. Fiscal year 2004 revenue includes $1.2
million in fiscal year 2003 assessments and $3.2 million in fiscal year 2005
assessments. The actual fiscal year 2004
revenue was $8.4 million.
History – Workers’ Compensation Insurance Assessments
Adopted in 1991. Assessments based on specific percentages
with an annual limit of $2,500,000 became effective as undedicated revenue to
the General Fund on July 17, 1991, PL 1991, c. 591. Amended effective January 1, 1993 to dedicate
assessments and set an annual limit of $6,000,000 pursuant to PL 1991, c.
885. Amended 1994 to change assessment
requirements and procedures effective April 7, 1994 pursuant to PL 1993, c.
619. Amended effective May 3, 1995 to
change assessment requirements and procedures pursuant to PL 1995, c. 59. Amended 1997 to increase assessment limit to
$6,600,000 effective September 19, 1997 to fund the Worker Advocate program
pursuant to PL 1997, c. 486. Amended by
PL 1999, c. 359 to increase the cap to $6,735,000 beginning in fiscal year 2000. PL 2001, c. 393 set the assessment cap at
$7,035,000 in fiscal year 2002. PL 2001,
c. 692 enacted an assessment cap beginning in fiscal year 2003 of
$6,860,000. PL 2003, c. 425 set the
assessment cap at $8,390,000 in fiscal year 2004, $8,565,000 in fiscal year
2005 and $8,525,000 in fiscal year 2006.
PL 2007, c. 240, Part LL increased the assessment cap to $9,820,178
beginning in fiscal year 2008, $10,000,000 beginning in fiscal year 2009,
$10,400,000 beginning in fiscal year 2010, $10,800,000 beginning in fiscal year
2011 and $11,200,000 in fiscal year 2012.
SAFETY EDUCATION
AND TRAINING ASSESSMENT – 26 M.R.S.A §61
An annual levy based on annual workers’ compensation paid losses is assessed on each insurance carrier licensed to issue workers’ compensation insurance in the state and on individual self-insured employers authorized to make workers’ compensation payments directly to their employees. The assessment is collected as dedicated revenue by the Department of Labor and deposited into the department’s Safety Education and Training Fund to be used for safety education and training programming administered by the department.
|
Safety Education & Training Assessment |
||
|
Fiscal Year |
Other Special Revenue Funds |
Total All Funds |
|
1998 |
$1,887,220 |
$1,887,220 |
|
1999 |
$1,928,189 |
$1,928,189 |
|
2000 |
$2,051,670 |
$2,051,670 |
|
2001 |
$1,885,237 |
$1,885,237 |
|
2002 |
$1,897,022 |
$1,897,022 |
|
2003 |
$1,936,939 |
$1,936,939 |
|
2004 |
$2,079,353 |
$2,079,353 |
|
2005 |
$1,768,890 |
$1,768,890 |
|
2006 |
$2,129,375 |
$2,129,375 |
|
2007 |
$2,249,051 |
$2,249,051 |
Revenue Notes – Safety Education and Training
Assessment
Revenue collected from this
assessment accrues as dedicated revenue.
History – Safety Education and Training Assessment
Adopted in 1985 by PL 1985,
c. 372.
FINANCE INDUSTRY
FEES AND ASSESSMENTS – 9-A M.R.S.A. ARTICLE VI & 9-B M.R.S.A., c. 21 &
32 M.R.S.A., c. 105
Consumer Credit Code Fees – 9-A M.R.S.A. §6-203 – Every creditor, collection agency, credit services organization and credit reporting agency authorized under the provisions of the Maine Consumer Credit Code, or other applicable laws, is required, depending on the type of creditor or organization, to pay certain application, examination and volume fees. The funds received from these various fees are used to support the operating costs of the Bureau of Consumer Credit Protection. Volume fees paid by financial institutions are paid to the Bureau of Financial Institutions. Both agencies are a part of the Department of Professional and Financial Regulation. See the Bureau of Consumer Credit Protection’s website (www.credit.maine.gov) for additional information about licenses and fees.
Banking Fees and Assessments – 9-B M.R.S.A. §214 – Each state chartered financial institution regulated by the Bureau of Financial Institutions is subject to examination by the Bureau at least once in a 36 month period. The regulated financial institution is assessed by the Bureau for the cost of the examination. In addition, each state chartered financial institution is subject to an assessment at the annual rate of at least 6¢ for each $1,000 of the total of average assets; the assessment may not be less than $25. The Bureau is also authorized to levy an annual assessment not to exceed $500 on interstate branches operated by an out-of-state financial institution. Lastly, non-depository trust companies that are not affiliated with a financial institution are required to pay an annual assessment of at least $2,000 or an amount not to exceed 6¢ for every $10,000 in fiduciary assets.
Securities Act Fees – 32 M.R.S.A. c. 135 (§16302, §16305 & §16410) – The Maine Office of Securities within the Department of Professional and Financial Regulation oversees the registration of securities and the licensing of broker-dealers, agents, investment advisers, and investment adviser representatives. The $30 annual renewal fee for agents and investment adviser representatives accrues as dedicated revenue to fund the operations of the Maine Office of Securities. The remainder of the fees collected by the office, which include agent initial license fees, broker-dealer fees, investment adviser fees, investment adviser representative initial fees, securities registration and exemption fees, and federal-covered securities notice filing fees, accrue to the General Fund.
|
Fiscal Year |
General Fund |
Other Special Revenue Funds |
Total All Funds |
||
|
| |||||