SECTION I – INTRODUCTION

 

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 Maine’s debt, General Fund reserve fund balances and Maine’s tax burden.  The Office of Fiscal and Program Review hopes you find this information useful.  Recent additions and changes to this report as part of efforts to improve its usefulness may result in some questions for those using this information for historical purposes.  Questions regarding conversions of data or suggestions for improvements to this report should be directed to:  Office of Fiscal and Program Review, 5 State House Station, Augusta, Maine 04333-0005, Telephone:  (207) 287-1635.

 

Report Layout

 

This report presents information in seven 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 descriptions of the major taxes and revenue sources including the current tax rates, current fees and assessments.  Each major revenue source includes a table providing a 10-year history of the revenue generated.  Most of the summaries also include 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 Maine’s general obligation debt, debt of the Maine Governmental Facilities Authority and other tax-supported debt.  The fifth section provides a history of the major General Fund Reserve Funds, the Maine Budget Stabilization Fund (formerly the Maine Rainy Day Fund) and the Reserve for General Fund Operating Capital.  The sixth section, State and Local Tax Burdens, provides a history of Maine’s taxes per capita and as a percentage of personal income.  The seventh and final section provides a 20-year history of authorized position counts for Maine State Government.

 

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.  (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 excise tax.  Fuel taxes were added at the end of fiscal year 1999 and several additional taxes became subject to accrual at the end of fiscal year 2000.  Revenues from other sources are recognized when received and expenditures are recorded when paid.  The table on the next page summarizes the major taxes that are subject to accrual and the amounts accrued for the last 5 fiscal years.

 

Maine State Government’s fiscal year runs from July 1st through June 30th.  References to fiscal years or a fiscal year throughout this report will use the year in which the fiscal year ends, i.e., fiscal year 2012 refers to the fiscal year ending June 30, 2012.

 

 

 

 

 

Table I-1   Major Revenue Accruals

Fiscal Years 2008 - 2012

 

2008

2009

2010

2011

2012

REVENUE SOURCE

$

$

$

$

$

Income Taxes

 

 

 

 

 

   Individual Income Tax

$58,761,764

$57,335,427

$48,378,910

$42,132,671

$51,655,517

  Corporate Income Tax

$2,261,794

$2,442,978

$4,070,218

$2,000,000

$4,000,000

Sales and Use Taxes

$95,362,809

$88,963,969

$85,979,975

$86,839,775

$96,443,395

Service Provider Tax

 

 

 

 

 

   General Fund

$4,356,901

$4,474,537

$5,754,416

$5,927,048

$4,483,465

   Other Special Revenue Funds

$0

$0

$0

$0

 

Estate Tax

$7,600,000

$5,949,315

$4,490,000

$4,432,150

$6,400,000

Tobacco Products Tax

$618,091

$600,000

$800,000

$980,000

$950,000

Cigarette Tax

$0

$0

$0

$0

$0

Telecommunications Excise Tax

$17,541,031

$18,390,880

$17,678,938

$17,731,074

$13,355,947

Real Estate Transfer Tax

 

 

 

 

 

   General Fund

$1,200,000

$1,000,000

$900,000

$975,000

$875,000

   Other Special Revenue Funds

$1,200,000

$1,000,000

$900,000

$975,000

$875,000

Gasoline Tax

$16,340,726

$14,300,000

$16,000,000

$16,850,000

$16,850,000

Special Fuel

$5,730,088

$4,700,000

$4,400,000

$4,400,000

$4,400,000

 

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 to provide a history of expenditures for all funds, see page 79.

 

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, Corporate Income Tax and Cigarette Tax.  These four major taxes account for more than 91% of General Fund revenue.  The Graph and Tables on pages 87 to 93 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 related 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 94 to 97 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 specific purposes.  Although included as Other Special Revenue Funds in the reporting of the Office of the State Controller, this report segregates Federal Funds into separate exhibits.  In this report, this group of funds includes only the State’s own source dedicated or special funds.   This group also includes the Fund for a Healthy Maine (whose primary income source is Tobacco Settlement funds), which is treated by the Legislature as a separate fund for budget purposes, but is technically just a group of accounts in Other Special Revenue Funds.  The graph and tables on pages 98 to 104 summarize the revenues and expenditures grouped under Other Special Revenue Funds.  Supplemental tables on page 104 provide a separate look at only the revenue and expenditures of the Fund for a Healthy Maine.

 

Federal Funds

 

As noted above, this report separates out the Federal Funds (Federal Expenditures Fund and Federal Block Grant Fund) from the Office of the State Controller’s Other Special Revenue Funds category.  For the purposes of this report, the Federal Expenditures Fund and the Federal Block Grant Fund will be referred to as “Federal Funds” and include federal stimulus funds received under the American Recovery and Reinvestment Act of 2009 (ARRA).  The graphs and tables on pages 105 to 109 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.  These include the following.

·         The Debt Service Funds are 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 ongoing activities supported by fees for goods or services and are either:

o   Enterprise Funds for activities providing goods and services to the general public; or

o   Internal Services Funds for activities providing 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 pages 79 and 80 provides a history of total 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 expenditures.

 

Sources

 

The Office of Fiscal and Program Review has compiled this report using numerous sources including the records of the Office of the State Controller and the Office of the State Treasurer and various other state departments and agencies.  Population and Personal Income data are from the U.S. Department of Commerce.

 

Expenditure and revenue data have been downloaded from the State’s accounting system.  With the implementation of the State’s new accounting system beginning in fiscal year 2008, some expenditure by category detail may be different by minor amounts from actual expenditures in that category due to the Controller’s methodology for accounting for certain prior period adjustments.

 

 


 

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, 2012.  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 of these categories by fund.  The amounts in these tables may not add due to rounding to the nearest $1.  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 Maine taxable income of every resident individual, estate and trust of Maine.  Maine taxable income is based on federal adjusted gross income, with several Maine-specific adjustments.  Nonresident individuals, estates and trusts are subject to tax on income derived within Maine.  Tax rates are progressive from 2% to 8.5%, and will change beginning in tax year 2013 to rates of 0%, 6.5% and 7.95%.  Table II-1 on page 6 provides a summary of 2012 individual income tax schedules, personal exemptions and standard deductions.  The rate for nonresident individuals is determined based on taxable income from all sources and applied to Maine-sourced income to determine the tax.  Tax rates for fiduciaries are the same as those for single individuals.

 

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 income which constitutes Maine taxable income is also required to withhold Maine income tax from such payments, if federal withholding is required.

 

Every partnership or S-corporation having a resident partner or shareholder or having Maine-derived income is required to file an information tax return.  Limited liability companies are taxed as either partnerships or corporations, according to the treatment elected by the company for purposes of the federal income tax.



 

Individual Income Tax

Fiscal Year

General Fund

Other Special Revenue Funds

Total All Funds

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

$1,299,252,215

2006

$1,364,368,543

$4,558,216

$1,368,926,759

2007

$1,464,928,346

$4,367,042

$1,469,295,388

2008

$1,558,032,961

$4,805,251

$1,562,838,211

2009

$1,365,437,729

$5,272,103

$1,370,709,832

2010

$1,298,036,055

$5,333,447

$1,303,369,502

2011

$1,415,283,534

$5,697,599

$1,420,981,133

2012

$1,434,217,189

$7,708,479

$1,441,925,668

 


 

Revenue Notes – Individual Income Tax – Individual income tax collections accrue to the General Fund.  The amounts in Other Special Revenue Funds are revenue set aside for reimbursement to contractors/collection agencies under 36 M.R.S.A. §113, and also include reimbursements and/or assessments related to the Visual Media Production Reimbursement created by 36 M.R.S.A. c. 919-A §6901 et seq.  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 on pages 66 to 69.

 

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 was 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 to repeal the indexing of the personal exemption.  PL 2011, c. 380, Part N provided federal conformity with standard deductions, eliminated the alternative minimum tax, reduced the amount of additional taxes for lump sum and early retirement plan distributions and allowed itemized deductions for mortgage premiums beginning in tax year 2012.  Part N also changed the tax rate schedules and personal exemption amounts beginning in tax year 2013.  PL 2011, c 692 directs the transfer of certain excess General Fund revenues to the Tax Relief Fund to be used to gradually reduce the income tax rates.

 

CORPORATE INCOME TAX – 36 M.R.S.A., Part 8

 

A corporate income tax is imposed on all corporations (except subchapter S corporations) subject to federal income tax and having nexus with Maine, except for financial institutions subject to the franchise tax and insurance companies subject to the insurance premium tax.  The tax is levied on Maine net income, which is federal taxable income as modified by Maine law.  Modified federal taxable income is apportioned based on the percentage of the corporate taxpayer’s sales in Maine.  The income of mutual fund service providers is also apportioned based only on sales.  Corporate tax rates are progressive from 3.5% to 8.93% (see table below).  Combined reporting is required for all taxable corporations that are members of an affiliated group operating in a unitary fashion.

 

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

$875 plus 7.93% of the excess above $25,000

 $  75,000 but not over               $250,000

$4,840 plus 8.33% of the excess above $75,000

 $250,000 or over

$19,418 plus 8.93% of the excess above $250,000

 

Limited liability companies can be taxed as either partnerships or corporations, according to the election of the company for federal income tax purposes.

 


 

 

Table II-1 State of Maine – Individual Income Tax – 2012 Rates

2012 Cost-of-living adjustment is 1.219

Note:  The 2012 tax rate schedule dollar bracket amounts are adjusted by multiplying
the cost-of-living adjustment, 1.219, 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 2012.

 

 

Tax Rate Schedule #1

FOR SINGLE INDIVIDUALS AND MARRIED PERSONS FILING SEPARATE RETURNS

If the taxable income is:

Less than $5,100

$5,100 but less than $10,150

$10,150but less than $20,350

$20,350or more

The tax is:

2.0% of the taxable income

$102 plus 4.5% of excess over $5,100

$329 plus 7.0% of excess over $10,150

$1043 plus 8.5% of excess over $20,350

 

Tax Rate Schedule #2

FOR UNMARRIED OR LEGALLY SEPARATED INDIVIDUALS WHO QUALIFY AS HEADS-OF-HOUSEHOLDS

If the taxable income is:

Less than $7,650

$7,650but less than $15,200

$15,200but less than $30,500

$30,500 or more

The tax is:

2.0 of the taxable income

$153 plus 4.5% of excess over $7,650

$493plus 7.0% of excess over $15,200

$1,564 plus 8.5% of excess over $30,500

 

Tax Rate Schedule #3

FOR MARRIED INDIVIDUALS AND SURVIVING SPOUSES FILING JOINT RETURNS

If the taxable income is:

Less than $10,200

$10,200 but less than  $20,350

$20,350 but less than  $40,700

$40,700 or more

The tax is:

2.0% of the taxable income

$204 plus 4.5% of excess over $10,200

$661 plus 7.0% of excess over $20,350

$2,086 plus 8.5% of excess over $40,700

 

PERSONAL EXEMPTION:  $2,850

 

STANDARD DEDUCTION:

        Single -  $5,950

        Head-of-Household -  $8,700

 

 

Married Filing Jointly -  $11,900

Married Filing Separate -  $5,950

 

Additional Amount for Age or Blindness:

$1,150 if married (whether filing jointly or separately) or a qualified surviving spouse.  The additional amount is $2,300 if one spouse is 65 or over and blind, $2,300* if both spouses are 65 or over, $4,600* 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.

 

$1,450 if unmarried (single or head-of-household).  The additional amount is $2,900 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 $950 or earned income plus $300 (up to the standard deduction amount).

 


 

Corporate Income Tax

 

Fiscal Year

General Fund

Total All Funds

2003

$91,188,393

$91,188,393

2004

$111,616,051

$111,616,051

2005

$135,862,913

$135,862,913

2006

$188,015,558

$188,015,558

2007

$183,851,533

$183,851,533

2008

$184,514,568

$184,514,568

2009

$143,085,966

$143,085,966

2010

$175,292,433

$175,292,433

2011

$208,996,598

$208,996,598

2012

$232,117,995

$232,117,995

 

Revenue Notes – Corporate Income Tax

Corporate income tax collections accrue to the General Fund. PL 1999, c 708, §5 provides that revenue may be set aside as Other Special Revenue Funds in an amount equal to the expenses of those contract audit and collection programs for which fees are contingent on the amount collected  under 36 M.R.S.A. §113 for the sole purpose of paying those expenses.  In fiscal year 2001, Other Special Revenue Funds reflected $180,000 in revenue set aside for this purpose.  The amounts above also include revenue from the Franchise Tax on Financial Institutions (see next section).  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 and PL 2009, c. 213, Part NN to change the apportionment formula.  PL 2009, c. 571, Part GG adopted the Finnigan approach for the purpose of calculating the sales apportionment factor for C-corporations operating in Maine.  PL 2011, c. 380, Part O brought Maine into full conformity with expensing rules under the Internal Revenue Code, section 179 and created a credit equal to 10% of federal bonus depreciation.  PL 2011, c. 380 also included new credits for specific investments.

 

 

FRANCHISE TAX ON FINANCIAL INSTITUTIONS – 36 M.R.S.A. c. 819

 

The franchise tax on financial institutions is imposed annually on every financial institution doing business in Maine that had a substantial physical presence in Maine and which at any time during the taxable year realized Maine net income or had Maine assets.  Financial institutions may elect to pay the franchise tax as follows:  (1) 1% of Maine net income and 8¢ per $1,000 of Maine assets, or (2) 39¢ per $1,000 of Maine assets with no assessment based on Maine net income.  Combined reporting is required for all financial institutions that are members of an affiliated group operating in a unitary fashion.

 

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.  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 Maine net income and 4¢ per $1,000 of Maine assets.  Tax was doubled in 1986.  Amended in 1997 and 1998 to clarify definitions, application and apportionment.  Amended in 2006 to provide option of tax based solely on Maine assets.

 


 

SALES AND USE TAXES – 36 M.R.S.A. cc. 211-225

 

Sales Tax – Maine sales tax is imposed at the following rates: 

 

1)      5% of the retail sale price of tangible personal property and the taxable services of transmission and distribution of electricity, extended service contracts on an automobile, prepaid calling arrangements and long-term automobile rentals or leases;

 

2)      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

 

3)      10% on the short-term rental of automobiles. 

 

Maine sales 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 applied to 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 beginning on the next page.

 

Use Tax – Maine use tax is imposed at the same rate as the sales tax on storage, use or other consumption in Maine of tangible personal property or a service, unless “substantial” (12 months) use was made of the property elsewhere before it was brought to Maine.  Motor vehicles registered as automobiles that were purchased and actually used in another state before being brought to Maine are excepted if the purchaser was a resident of another state at the time of purchase.  The use tax does not apply to purchases on which Maine sales tax has been paid.  Credit is allowed for sales or use tax paid in another jurisdiction, up to the amount of the Maine tax.  On-line purchases are subject to the use tax when the seller does not collect sales tax.

 

Sales and Use Taxes

Fiscal Year

General Fund

Other Special Revenue Funds

Total All Funds

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

$16

$971,455,737

2008

$983,057,278

($344)

$983,056,934

2009

$921,823,720

$4,109

$921,827,829

2010

$897,938,873

$10,837

$897,949,710

2011

$923,686,973

$1,496

$923,688,468

2012

$981,257,805

$28

$981,257,833

 

Revenue Notes – Sales and Use Taxes

Sales and Use Tax collections accrue primarily to the General Fund.  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.

 


 

History – Sales and Use Taxes

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 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 required, 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.  PL 2009, c. 625 imposed the sales and use tax for the first time on medical marijuana.

 

 

SERVICE PROVIDER TAX – 36 M.R.S.A. – c. 358

 

The service provider tax is imposed at the rate of 5% on the value (sales price) of the following services: 

 

1)            Extended cable television and satellite 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;

8)            Community support services for persons with mental health diagnoses, developmental disabilities or autism;

9)            Home support services; and

10)        Ancillary telecommunications 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

2008

$52,100,664

$36,494,882

$88,595,545

2009

$52,812,595

$37,720,482

$90,533,077

2010

$56,086,391

$35,609,109

$91,695,500

2011

$52,672,306

$33,880,370

$86,552,676

2012

$48,255,501

$34,829,087

$83,084,588

 

Revenue Notes – Service Provider Tax

Service provider tax revenues from above-listed services 1 to 6 and 10 accrue to the General Fund.  Service provider tax revenues from above-listed items 7 to 9 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).  Amended in 2008 to change names of services and add ancillary telecommunications services (PL 2007, c. 627, §55).

 

 

ESTATE TAX – 36 M.R.S.A. c. 575

 

The Maine estate tax is imposed upon the transfer of the estate of every person who was a Maine resident at the time of death.

 

For deaths occurring after January 1, 2002, the Maine estate tax is equal to the tax that would be owed using the formula for calculating the federal credit for state death taxes effective on December 31, 2002 (exclusive of any reduction in the maximum credit amount) and based on the unified credit amount as of December 31, 2000 / $1,000,000 for deaths on or after 2006.  A similar tax is imposed on real and tangible personal property situated in Maine passing by reason of the death of a person not a Maine resident at the same percentage of the federal allowance for state death taxes that the value of the property taxable in Maine bears to the total estate.  For deaths occurring after January 1, 2011, Maine conforms to federal law with respect to qualified terminable interest property.  For deaths occurring after December 31, 2012, the exclusion will be $2,000,000 and a progressive rate structure will be established with a rate of 8% for taxable estates between $2 million and $5 million, 10% for estates between $5 million and $8 million, and 12% for estates exceeding $8 million.

 


 

Estate Tax

Fiscal Year

General Fund

Total All Funds

2003

$30,520,320

$30,520,320

2004

$32,075,501

$32,075,501

2005

$32,255,727

$32,255,727

2006

$75,330,514

$75,330,514

2007

$54,820,038

$54,820,038

2008

$39,890,577

$39,890,577

2009

$31,819,188

$31,819,188

2010

$31,209,840

$31,209,840

2011

$49,323,494

$49,323,494

2012

$44,865,567

$44,865,567

 

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, 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 Maine estate tax was enacted in 1981 to replace the previous estate tax based on federal credit for state death taxes, beginning with deaths occurring after June 30, 1986.  An additional inheritance tax was phased out between 1981 and 1986.  Amended in PL 2001, c. 559, Part GG to calculate Maine estate tax under the formula in effect before federal reductions.  Amended in PL 2003, c. 20, Part JJ to extend that treatment through 2004.  Amended in PL 2003, c. 673, Part D to extend nonconformity with federal changes.  PL 2011, c. 380, Part M increased the exclusions to $2 million and established a progressive rate structure for estates of decedents dying after December 31, 2012. It provided conformance with federal law with respect to the treatment of qualified terminable interest property for estates of decedents dying on or after January 1, 2011, and clarified provisions related to nonresidents' estates.

 

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 Maine for retail sale.  The rate of the tax is 100 mills per cigarette or $2.00 per pack.

 


Cigarette Tax

Fiscal Year

General Fund

Total All Funds

2003

$94,397,943

$94,397,943

2004

$92,625,638

$92,625,638

2005

$91,906,017

$91,906,017

2006

$151,497,467

$151,497,467

2007

$152,957,212

$152,957,212

2008

$143,758,002

$143,758,002

2009

$137,572,515

$137,572,515

2010

$137,799,791

$137,799,791

2011

$133,664,535

$133,664,535

2012

$129,862,329

$129,862,329

 

Revenue Notes – Cigarette Tax

Revenue from the Cigarette Tax accrues primarily to the General Fund.  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 which follows summarizes the cigarette tax rate changes over time since the inception of the tax.  PL 2011 c. 441 authorizes a credit for redemption of cigarette tax stamps for cigarettes that are destroyed by a distributor because the products have become unfit for use, sale or consumption beginning July 1, 2012.

 

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 Maine.  The tax does not apply to tobacco products exported from Maine.  The tax rate for smokeless tobacco, including chewing tobacco and snuff, is $2.02 per ounce and prorated for fractions of an ounce.  The tax rate for other tobacco, including cigars, pipe tobacco and other tobacco intended for smoking is 20% of the wholesale price.

 

Tobacco Products Tax

Fiscal Year

General Fund

Total All Funds

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

2008

$6,741,430

$6,741,430

2009

$6,852,197

$6,852,197

2010

$11,266,886

$11,266,886

2011

$11,564,769

$11,564,769

2012

$9,866,817

$9,866,817

 

Revenue Notes – Tobacco Products Tax

Revenue from the Tobacco Products Tax accrues to the General Fund. 

 


 

History – Tobacco Products Tax

A similar tax at the rate of 20% of the retail 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 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 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.  Beginning July 1, 2009, PL 2009, c. 213, Part H changed the tax on smokeless tobacco products to a tax based on weight at the rate of $2.02 per ounce.  PL 2011 c. 441 authorizes a credit for tobacco products tax previously paid that are destroyed by a distributor because the products have become unfit for use, sale or consumption beginning July 1, 2012.  Fees are established by rule. 

 

 

CIGARETTE AND 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 (DHHS) collects license fee revenue associated with the wholesale and retail sale of cigarettes and tobacco products.  Each distributor doing business in Maine must secure a distributor’s license from Maine Revenue Services, for which there is no fee.  The Maine Center for Disease Control and Prevention within DHHS licenses the retail sale of cigarettes and tobacco products.  The DHHS fee for an annual retail tobacco license is set by the department through rule-making.  See table below for current fees.

 

Retail Tobacco License Fees

License Type

Fee

Retail Tobacco I – Less than 30% annual gross revenue from total cigarette/tobacco sales

$100

Retail Tobacco II – Between 30% and 50% of annual gross revenue from total cigarette/tobacco sales

$125

Retail Tobacco III – Greater than 50% of annual gross revenue from total cigarette/tobacco sales

$150

Seasonal Mobile Tobacco Vendor License

$50 for the first fair location; $10 for each additional fair location

Tobacco Vending Machine

$50 per machine

 

Cigarette and Tobacco Product License Fees

Fiscal Year

General Fund

Other Special Revenue Funds

Total All Funds

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

$11,338

$255,978

2008

$298,521

$9,463

$307,984

2009

$188,536

$15,525

$204,061

2010

$373,305

$14,055

$387,360

2011

$218,594

$4,820

$223,414

2012

$217,788

$5,768

$223,555

 

Revenue Notes – Cigarette and Tobacco Products License Fees

Revenue collected by the Maine Revenue Services through 2002 for the wholesale distribution of cigarettes and tobacco products accrued to the General Fund.  Fees for retail licenses collected by DHHS accrued as dedicated revenue to the Maine Center for Disease Control and Prevention through fiscal year 2004.  Since fiscal year 2005, the retail license revenue has accrued to the General Fund.

 

History – Cigarette and 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, Maine Center for Disease Control and Prevention, and set the fee at up to $25.  PL 2001, c. 526 repealed the Maine 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 DHHS 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.

 

 

LIQUOR SALES AND OPERATIONS – 28-A M.R.S.A. §88

 

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 was 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.

 

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

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

2008

$5,561,666

$5,561,666

2009

$6,220,535

$6,220,535

2010

$6,784,941

$6,784,941

2011

$7,311,603

$7,311,603

2012

$8,049,429

$8,049,429

 

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 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 the bureau.  Fiscal year 2005 reflects an additional $50,000,000 lease payment partially reduced by a prior period accounting adjustment.

 


 

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).  This revenue source is separately described and tabulated in the Liquor Sales and Operations 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 Maine.

 

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 Maine manufacturer or importing wholesale licensee must pay an excise tax of 25¢ per gallon on all malt liquor sold in the state.  In addition to this tax, a premium is imposed at the rate of 10¢ per gallon (See 28-A M.R.S.A. §1703, Sub-§3).

 

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 Maine.  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 Maine manufacturer or importing wholesale licensee must pay an excise tax of $1 per gallon on all low-alcohol spirits products and fortified wines manufactured in or imported into Maine.  An additional tax of 30¢ per gallon is imposed on low-alcohol spirits products sold to wholesale licensees in Maine by certificate of approval holders who manufacture low-alcohol spirits products.  In addition to this tax, a premium is imposed at the rate of 24¢ per gallon (See 28-A M.R.S.A. §1703, Sub-§3).

 


 

Liquor Taxes

 

General Fund

 

Fiscal Year

Excise Tax - Beer & Wine

Premium Tax - Beer & Wine

Premium Tax - Spirits

Total All Funds

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

$15,695,928

2007

$10,626,704

$4,433,643

$1,915,563

$16,975,910

2008

$10,875,923

$4,575,601

$1,952,098

$17,403,622

2009

$10,812,035

$4,628,120

$1,997,405

$17,437,560

2010

$10,340,790

$4,484,944

$2,038,135

$16,863,869

2011

$10,696,046

$4,674,467

$2,093,779

$17,464,292

2012

$10,477,654

$4,668,907

$2,205,539

$17,352,100

 

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 licenses and regulates the operation of 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.


 

Table II-2 – Liquor License Fee Schedule

 

License Class

Retail Sales

 

 

Description

 

 

Amount

Class I*

Spirituous, Vinous & Malt – Airlines; Auditoriums, Bowling Centers; Civic Auditoriums; Class A Restaurants; Clubs w/ Catering Privileges; Dining Cars & Passenger Cars; Golf Clubs; Hotels; Indoor Ice Skating Clubs; Indoor Racquet Clubs; Performing Arts Centers; Qualified Catering Services; & Vessels

$900

Class I-A*

Spirituous, Vinous & Malt – Hotels – Optional Food

$1,100

Class II*

Spirituous, Vinous & Malt – Airlines; Auditoriums, Bowling Centers; Civic Auditoriums; Class A Restaurants; Clubs w/ Catering Privileges; Dining Cars & Passenger Cars; Golf Clubs; Hotels; Indoor Ice Skating Clubs; Indoor Racquet Clubs; Performing Arts Centers; Qualified Catering Services; & Vessels

$550

Class III*

Vinous Only – Airlines; Auditoriums; Bed & Breakfasts; Bowling Centers; Civic Dining Cars & Passenger Cars; Golf Clubs; Hotels; Indoor Ice Skating Clubs; Indoor Racquet Clubs; Outdoor Stadiums, Performing Arts Centers; Pool Halls; Qualified Catering Services; Restaurants; and Vessels

$220

Class IV*

Malt Only – Airlines; Auditoriums; Bed and Breakfasts; Bowling Centers; Civic Auditoriums; Class A Restaurants; Clubs with Catering Privileges; Dining Cars & Passenger Cars; Golf Clubs; Hotels; Indoor Ice Skating Clubs; Indoor Racquet Clubs; Outdoor Stadiums; Performing Arts Centers; Pool Halls; Qualified Catering Services; Restaurants; Taverns; and Vessels

$220

Class V*

Spirituous; Vinous & Malt – Clubs w/o Catering Privileges and Bed & Breakfasts

$495

Class VI*

Off-premise Retailers – Malt Liquor

$200

Class VI-A*

Off-premise Retailers – Malt Liquor – Ship Chandler w/o groceries or stock

$200

Class VII*

Off-premise Retailers – Wine

$200

Class VII-A

Off-premise Retailers – Wine – Ship Chandler w/o groceries or stock

$200

Class X*

Spirituous, Vinous & Malt – Class A Lounges

$2,200

Class XI*

Spirituous, Vinous & Malt – Class A Restaurants/Lounges; Off Track Betting Facilities

$1,500

 

Agency Liquor Stores – (Initial License and Transfer Fee)

$2,000

 

Agency Liquor Stores – (Renewal)

$300

 

Incorporated Civic Organizations

$50

 

Special Catering Permits

$10

 

Auxiliary Licenses

$100

 

Bottle Club Registrations

$50

 

B.Y.O.B. Functions

$10

 

Special Taste Testing Festival & Special Food & Beverage Ind. Taste-Testing Event

$20

 

Hotel Minibar License, hotel holding an existing license under
Title 28-A, §1061

$100 plus $5/room, not to exceed $900/hotel

 

Hotel Minibar License, hotel holding an existing license under Title 30-A, §3811

$200 plus $10/room

 

Dual Liquor License

$600

 

Wine Direct Shipper License - Initial

$200

 

Wine Direct Shipper License - Renewal

$50

 

Self-Sponsored Event Permit

$700

Wholesale

Licenses

 

 

 

Certificates of Approval – Spirituous (Storage Only)

$600

 

Certificates of Approval – Malt

$1,000

 

Certificates of Approval – Wine

$1,000

 

Certificates of Approval – Wine (Less than 120 gallons per year)

$100

 

Wholesale – Malt

$600

 

Wholesale Storage – Malt – monthly

$50

 

Wholesale – Wine

$600

 

Wholesale Storage – Wine – monthly

$50

 

Sales Representative

$50

 

Reselling Agent

$50

 

Small Maine Brewers

$50

 

Distillers & Brewers

$1,000

 

Maine Farm Wineries

$50

 

Rectifiers & Bottlers

$1,000

 

* Note:  Licenses I-XI require a $10.00 filing fee.

 


 

Liquor License Fees

Fiscal Year

General Fund

Total All Funds

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

2008

$3,269,686

$3,269,686

2009

$3,406,817

$3,406,817

2010

$3,497,685

$3,497,685

2011

$3,552,885

$3,552,885

2012

$3,642,095

$3,642,095

 

Revenue Notes – Liquor License Fees

Revenue from the Liquor License Fees accrues to the General Fund.

 

History – Liquor License Fees

Liquor license fees were 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.  PL 2009, c. 373 established a wine direct shipper license, PL 2009, c. 438 established a dual liquor license and PL 2009, c. 458 established a hotel minibar license.  PL 2011, c. 259 established a special food and beverage taste-testing event license.

 

INSURANCE PREMIUM TAX – 36 M.R.S.A. c.357

 

Every insurance company or association doing business or collecting premiums in Maine 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 with assets in excess of $5,000,000,000, and 1% for all other insurers. 

 

Every non-resident insurance company authorized to do business in Maine is liable for a tax on all policies written in Maine, at either the Maine rate or the rate at which a Maine company would be taxed in the American state or Canadian province where the non-resident company is domiciled, whichever is greater.  Captive insurers are subject to the corporate income tax instead of the insurance premium tax.

 





Insurance Premium Tax

Fiscal Year

General Fund

Total All Funds

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

2008

$72,292,532

$72,292,532

2009

$79,770,431

$79,770,431

2010

$80,019,149

$80,019,149

2011

$76,930,329

$76,930,329

2012

$82,985,771

$82,985,771

 

Revenue Notes – Insurance Premium Tax

Revenue from the Insurance Premium Tax accrues to the General Fund. Fire Investigation and Prevention Tax is reported separately.

 

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.  PL 2011, c. 311 amends surplus lines eligibility standards and nonadmitted insurance premium tax laws to conform to the federal Nonadmitted and Reinsurance Reform Act of 2010. Beginning in 2012, provider fees on service contracts may be excluded from premiums subject to the insurance premiums tax (PL 2011, c. 345).  PL 2011, c. 540 allows taxpayers subject to the insurance premiums tax to be eligible for the credit for rehabilitation of historic property credit. Taxpayers subject to the insurance premiums tax are also eligible for the new market tax credit created by PL 2011, c. 380, Part Q to encourage investment in economically distressed areas.

 

 

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

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

2008

$4,772,210

$4,772,210

2009

$2,794,476

$2,794,476

2010

$3,852,537

$3,852,537

2011

$3,460,064

$3,460,064

2012

$3,675,715

$3,675,715

 

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, 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, 2003.  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 Maine 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 Maine 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 plan licensed to do business in Maine 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.  The minimum assessment is $100.

 

In addition to the Insurance Regulatory Assessment, the Bureau of Insurance is also authorized to assess a number of license, application, filing and other miscellaneous fees related to its regulation of the insurance industry.  The current fee schedule is available at 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

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

2008

$9,473,951

$9,473,951

2009

$2,036,047

$2,036,047

2010

$10,375,342

$10,375,342

2011

$2,991,140

$2,991,140

2012

$12,630,085

$12,630.085

 

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.  License renewal fees are biennial, resulting in the biennial fluctuations in fee collections.  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 Maine and 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 multiplied by the filed manual rate multiplied by the employer’s current experience modification factor (if applicable).  The only deductible credits that may be included in the calculation are (a) the $1,000 and $5,000 indemnity deductible, and (b) $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 on or before May 1st annually.  The assessment is collected from employers by certain insurance companies beginning on July 1st annually.  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 for the previous fiscal year by September 15th.  Insurance companies with an annual assessment estimate of less than $50,000 are required to pay the entire assessment on or before June 1st of each year.  Self-insured employers must pay the assessment on or before June 1st.

 

The assessments made 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 are available.  By law, the assessments may not be designed to produce more than a capped amount for any one fiscal year.  In fiscal year 2012, the assessment cap was set at $11,200,000.

 

Assessments exceeding the applicable amount by a margin of more than 10% must be used to reduce the assessment for the following fiscal year.  Any amount collected above the board’s allocated budget and within the 10% margin must be used to create a reserve of up to 25% of the board’s annual budget.

 

Workers' Compensation Insurance Assessments

Fiscal Year

Other Special Revenue Funds

Total All Funds

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

2008

$13,156,356

$13,156,356

2009

$5,891,018

$5,891,018

2010

$13,311,737

$13,311,737

2011

$6,743,516

$6,743,516

2012

$11,440,217

$11,440,217

 


 

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 beginning in fiscal year 2012.

 

 

SAFETY EDUCATION AND TRAINING ASSESSMENT – 26 M.R.S.A §61

 

Each insurance carrier licensed to write workers’ compensation insurance in Maine as well as individual self-insured employers authorized to make workers’ compensation payments directly to employees, who have paid workers’ compensation benefits (excluding medical payments) during an assessment period, typically a calendar year, pays an annual assessment to the Safety Education and Training Fund.  The assessment is collected as dedicated revenue by the Department of Labor and deposited into the department’s Safety Education and Training Fund for its safety education and training programs.  The total annual assessment is equal to the lesser of either the fiscal year allotment to the Safety Education and Training Fund or 1% of the total workers’ compensation benefits paid.  The assessment is levied by the Department of Labor and is based on the percentage of the total assessment base that an individual insurance carrier or self-insured paid out (excluding medical payments).  For example, an insurance company that paid out 1% of the total assessment base would be billed 1% of the assessment.  The assessment base is the total workers’ compensation benefits paid minus any medical payments.

 

Safety Education and Training Assessment

Fiscal Year

Other Special Revenue Funds

Total All Funds

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

2008

$2,319,624

$2,319,624

2009

$1,830,936

$1,830,936

2010

$2,106,314

$2,106,314

2011

$2,880,306

$2,880,306

2012

$1,548,621

$1,548,621

 

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. 

 

DIRIGO HEALTH ASSESSMENTS  – 24-A M.R.S.A. §6913 (Repealed), 24-A M.R.S.A. §6917  

All health insurance carriers, 3rdparty administrators and employee benefit excess insurance carriers must pay an access payment on all paid claims, except claims under accidental injury, specified disease, hospital indemnity, dental, vision, disability income, longterm care, Medicare supplement or other limited benefit health insurance.  The amount of the access payment is 2.14% on claims for services provided through June 30, 2011, 1.87% on claims for services provided from July 1, 2011 to June 30, 2012, 1.64% on claims for services provided from July 1, 2012 to June 30, 2013 and 1.14% on claims for services provided from July 1, 2013 to December 31, 2013. No access payment can be charged for any claims for services provided on January 1, 2014 or thereafter.

 

Dirigo Health Assessments

 

Dirigo Health Enterprise Fund

 

Fiscal Year

Savings Offset Payments

Dirigo Health Access Payments

Total Dirigo Health Enterprise Fund

2006

$3,573,156

$0

$3,573,156

2007

$30,330,271

$0

$30,330,271

2008

$21,366,193

$0

$21,366,193

2009

$42,936,388

$0

$42,936,388

2010

$7,138,860

$36,304,947

$43,443,807

2011

$64,715

$44,364,727

$44,429,442

2012

$0

$38,672,158

$38,672,158

 

Revenue Notes – Dirigo Health Assessments

Revenue from Dirigo Health assessments are deposited in the Dirigo Health Enterprise Fund established in section 24-A M.S.R.A. §6915 and pooled with other revenues of the Dirigo Health program.  The Dirigo Health Enterprise Fund is not an operating fund and this revenue source will not appear in the revenue tables in Section III.

 

History – Dirigo Health Assessments

PL 2003, c. 469 established the savings offset payment as a major funding source for the Dirigo Health program.  The aggregate amount of savings offset payments was based on the measurable health cost savings determined to result from the Dirigo Health program.  The payments of up to 4% of health insurance premiums were paid by health insurance carriers, employee benefit excess insurance carriers and third-party administrators.  The savings offset payment was repealed in PL 2009, c. 359 and replaced with the Dirigo Health access payment.  PL 2011,
c. 380, Pt. BBB established a phase-down and, effective January 1, 2014, the repeal of the access payment.

 

 

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; 10 M.R.S.A §1328(1)(G); 32 M.R.S.A §11031 and other financial regulatory statutes.  Every creditor, collection agency, loan broker 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, compliance 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.  For additional information about licenses and fees, see the Bureau of Consumer Credit Protection’s website at http://www.maine.gov/pfr/consumercredit/index.shtml.

 

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 pays 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.  The bureau may also receive fees for various applications such as those for new charters, mergers, consolidations and acquisitions. 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 12¢ for every $10,000 in fiduciary assets.

 

Securities Act Fees – 32 M.R.S.A. c. 69-B (§4696) and c. 135 (§16202, 16203,16302, §16305 & §16410).  The Office of Securities within the Department of Professional and Financial Regulation oversees the registration of business opportunities and 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, the $25 registration fee and $10 renewal fee for business opportunities accrue as dedicated revenue to fund the 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.

 

Finance Industry Fees and Assessments

Fiscal Year

General Fund

Other Special Revenue Funds

Total All Funds

Office of Securities

Office of Securities

Bureau of Consumer Credit Protection

Bureau of Financial Institutions

2003

$9,293,280

$2,166,350

$1,229,935

$1,802,822

$14,492,386

2004

$9,572,280

$1,672,410

$1,452,303

$2,234,815

$14,931,828

2005

$18,641,800

$1,798,245

$1,225,668

$2,056,408

$23,722,121

2006

$20,471,110

$1,895,740

$1,437,151

$2,052,574

$25,856,575

2007

$22,004,030

$2,052,920

$1,426,654

$2,178,139

$27,661,743

2008

$23,638,820

$2,217,885

$1,100,934

$1,975,590

$28,933,229

2009

$23.901,210

$2,228,421

$1,131,003

$2,083,325

$29,343,959

2010

$23,831,582

$2,302,705

$1,218,465

$2,334,393

$29,687,146

2011

$24,688,570

$2,499,280

$1,583,020

$2,205,752

$30,976,622

2012

$24,692,010

$2,740,455

$1,347,575

$2,538,147

$31,318,186

 

Revenue Notes – Finance Industry Fee and Assessments

The revenue generated by the Office of Securities, with the exception of the fees for renewal of securities agents and investment adviser representatives, accrues as General Fund revenue.  All other fees and assessments on the finance industry, except the Franchise Tax on Financial Institutions that is included in the Corporate Income Tax, accrue as dedicated revenue to the Bureaus of Financial Institutions or Consumer Credit Protection.

 


 

History – Finance Industry Fees and Assessments

Fees pertaining to the Maine Consumer Credit Code were first authorized by PL 1973, c. 762.  Since that time, the statutorily-established fees have been increased or decreased a number of times.  The assessment on financial institutions was first authorized in 1923 by PL 1923, c. 144; annual assessments were fixed at $2.50 for every $100,000 of assets held by the financial institution.  Under PL 1975, Chapter 500, the rate of assessment was changed to at least 7¢ for each $1,000 of average deposits, which was subsequently changed to at least 6¢ for each $1,000 of average assets.  Effective January 18, 2004, assessments for limited-purpose banks that predominantly engage in the business of a nondepository trust company was set by rule at 6¢ for each $10,000 of assets subject to assessment.  Effective January, 2010, nondepository assessment increases to 12¢ for each $10,000 of assets subject to assessment.  Office of Securities rulemaking reduced the annual renewal fee for agents from $40 to $30 effective November 23, 2003.  PL 2003, c. 673, Part RRR increased the fee for most securities registration filings from $500 to $1,000 effective August 1, 2004.  PL 2005, c. 12, Part KKKK, increased initial and renewal license fees for broker-dealers to $250, renewal license fees for investment advisers to $200, and initial license fees for agents and investment adviser representatives to $50 effective June 29, 2005.  The Maine Uniform Securities Act, PL 2005, c. 65, Part A, effective December 31, 2005, set licensing fee caps and granted the Securities Administrator rulemaking authority to set fees with the caps.  With the exception of the investment adviser representative annual renewal fee, which was lowered to $30 effective December 31, 2005, Office of Securities rulemaking set the fees at the same level that existed under the prior securities act.

 

 

HOSPITAL ASSESSMENTS AND TAXES – 36 M.R.S.A. §2801-A (Repealed),
36 M.R.S.A. c. 375 and c. 377

 

For state fiscal years beginning on or after July 1, 2004 an annual hospital tax is imposed equal to 2.23% of each hospital’s net operating revenue as identified in the hospital’s audited financial statement for the hospital’s taxable year.  For state fiscal years beginning on or after July 1, 2008, the hospital’s taxable year is the hospital’s fiscal year that ended during calendar year 2006.  For state fiscal years beginning on or after July 1, 2010, the hospital’s taxable year is the hospital’s fiscal year ending during calendar year 2008.  The tax base year and rate are fixed thereafter. For state fiscal year 2011, PL 2009, c. 571, Part VV added a new one-time hospital assessment equal to 0.12% of net operating revenue for the each hospital’s fiscal year that ended during calendar year 2008.  Revenue from this one-time assessment accrues to the General Fund.

 


Hospital Assessments and Taxes

Fiscal Year

General Fund

Other Special Revenue Funds

Total All Funds

2003

$3,795,726

$0

$3,795,726

2004

$265,398

$16,383,319

$16,648,717

2005

$235,022

$48,907,135

$49,142,157

2006

$2

$54,050,914

$54,050,916

2007

$0

$59,807,056

$59,807,056

2008

$0

$60,515,510

$60,515,510

2009

$0

$69,958,821

$69,958,821

2010

$0

$70,140,794

$70,140,794

2011

$4,322,688

$80,595,499

$84,918,187

2012

$0

$80,909,981

$80,909,981

 


 

Revenue Notes – Hospital Assessments and Taxes

When first adopted in 1991, hospital assessment revenue was dedicated to support Medicaid costs.  Although the original assessment was repealed in 1998, revenue continued to be collected primarily from outstanding tax liabilities.  Effective July 1, 2001, all revenue collected under the original assessment accrues to the General Fund.  All revenue from the one-time fiscal year 2003 tax also accrued to the General Fund.  Of the $3,795,726 in General Fund revenue from this source for fiscal year 2003, $3,509,865 was collected from the new one-time hospital tax, and $285,861 from collections of outstanding tax liabilities from the original hospital assessment.  General Fund collections for fiscal years 2004 and 2005 reflect outstanding tax liabilities from these assessments.

 

The current hospital tax, effective in fiscal year 2004, accrues as dedicated revenue to support hospital and other MaineCare programs.  However, a portion of the proceeds of the tax replaced General Fund appropriations for these purposes.

 

History – Hospital Assessments and Taxes

Adopted in 1991.  A hospital assessment was established by PL 1991, c. 528, Part Q and c. 591, Part Q for hospital payment years ending during or after fiscal year 1992 at a rate of 6% of each hospital’s gross patient service revenue limit.  State-operated hospitals were initially exempt from this assessment.  PL 1995, c. 368, Part RR amended the assessment for hospital payment years that end in fiscal year 1998 to reduce the rate from 6% to 3.56%.  PL 1995, c. 665, Part L amended the assessment to include state hospitals.  PL 1997, c. 24, Part T amended the assessment for hospital payment years that end in fiscal year 1998 to increase the rate from 3.56% to 5.27%; due to the effective date of the legislation, the rate of 3.56% was never in effect.  The assessment was repealed June 30, 1998 by PL 1995, c. 368, Part RR.  Following the repeal, PL 2001, c. 358, Part N authorized a transfer of the balance of dedicated revenue as of June 30, 2001 to the General Fund effective July 1, 2001 and required all remaining revenue to accrue to the General Fund.  A one-time assessment for fiscal year 2003 was established in PL 2001, c. 714, Part NN.  This 0.135% tax was assessed on hospital gross patient services revenue for hospital payment years ending in fiscal year 2000.

 

The current hospital tax was added in PL 2003, c. 513 and amended in PL 2003, c. 673.  The current hospital tax is distinct from the hospital assessment repealed in 1998 and the one-time hospital assessment in effect for fiscal year 2003.  For the state fiscal year beginning on July 1, 2003 a tax equal to 0.74% of hospital net operating revenue was imposed.  For the state fiscal year beginning July 1, 2004, the tax was increased to 2.23% of hospital net operating revenue for the hospital’s fiscal year that ended during calendar year 2002.  For the state fiscal year beginning July 1, 2005, the hospital’s taxable year was the hospital’s fiscal year that ended during calendar year 2003.  For the state fiscal years beginning on or after July 1, 2006, the hospital’s taxable year was the hospital’s fiscal year that ended during calendar year 2004.  For state fiscal year beginning on or after July 1, 2008, PL 2007, c. 545, allowed for further growth in the tax base year to the hospital’s fiscal year that ended during calendar year 2006.  For state fiscal years beginning on or after July 1, 2010, PL 2009, c. 571, Part AAA, again updated the base year to the hospital’s fiscal year ending during calendar year 2008.  The tax base year and rate are fixed thereafter.

 

PL 2009, c. 571, Part VV added a new one-time hospital assessment effective for state fiscal year 2011 equal to 0.12% of net operating revenue for the each hospital’s fiscal year that ended during calendar year 2008.  Revenue from this one-time assessment accrues to the General Fund.  PL 2011, c.477, Part II added a new one-time assessment effective for fiscal year 2013 equal to 0.39% of net operating revenue as identified on the hospital's most recent audited financial statement for the hospital's fiscal year that ended during calendar year 2008.  Revenue from this fiscal year 2013 one-time assessment accrues to the General Fund.

 

 

HEALTH CARE PROVIDER TAX – 36 M.R.S.A. c. 373

 

Beginning October 1, 2011 for any partial facility fiscal year and for whole facility fiscal years beginning on or after October 1, 2011, PL 2011. c. 411 increased the tax imposed against each nursing home to 6% of its annual net operating revenue for the corresponding whole or partial facility fiscal year and for each residential treatment facility to 6% of its annual gross patient services revenue for the corresponding whole or partial facility fiscal year.

 

 


 

Health Care Provider Tax

Fiscal Year

Other Special Revenue Funds

Total All Funds

2003

$23,613,564

$23,613,564

2004

$32,119,110

$32,119,110

2005

$31,200,066

$31,200,066

2006

$33,265,910

$33,265,910

2007

$31,941,717

$31,941,717

2008

$33,162,858

$33,162,858

2009

$30,350,060

$30,350,060

2010

$34,262,914

$34,262,914

2011

$33,545,909

$33,545,909

2012

$36,186,532

$36,186,532

 

Revenue Notes – Health Care Provider Tax

Health Care Provider Tax revenue accrues as dedicated revenue to the Department of Health and Human Services.  The nursing home tax is dedicated to support nursing home and other long-term care programs.  The residential treatment facilities tax is dedicated for behavior and developmental services.  In both cases, a part of the proceeds of the taxes replace reductions in General Fund appropriations for these purposes.

 

History – Health Care Provider Tax

A gross receipts tax on nursing homes was originally enacted in PL 1993, c. 410, Part YY, and was subsequently repealed effective January 1, 1997, pursuant to PL 1995, c. 665, Part E.

 

The current Health Care Provider Tax was enacted in PL 2001, c. 714, Part CC.  The nursing home tax was amended in PL 2003, c. 467 to modify audit and accounting provisions.  The residential treatment facilities tax was amended in PL 2003, c. 2, Part GG, to include state-operated facilities.

 

For facility fiscal years beginning after January 1, 2008, PL 2007, c. 539, Part X decreased the tax rate from 6.0% to 5.5%.  This change was made to comply with the provisions of Section 403 of the federal Tax Relief and Health Care Act of 2006 (TRHCA), PL 109-432, that limited Medicaid provider taxes to 5.5% of the revenues received by the taxpayer effective for fiscal years beginning after January 1, 2008 and before October 1, 2011.   PL 2011, c. 411 increased the rates back to 6% effective October 1, 2011 consistent with federal law.

 

 

HEALTH CARE INSTITUTION LICENSE FEES – 22 M.R.S.A. §1815, §1815-A

 

Each application for a license to operate a hospital, convalescent home or nursing home must be accompanied by a nonrefundable fee.  Each application for a license to operate a nursing facility must be accompanied by an additional nonrefundable surcharge of $5 for each bed contained with the facility.  Each application for a license to operate an ambulatory surgical facility must be accompanied by a fee up to $500 established by the Department of Health and Human Services on the basis of a sliding scale representing size, number of employees and scope of operations.  All licenses issued must be renewed annually accompanied by a like fee.  State hospitals are exempt from the licensing fees.

 


 

Health Care Institution License Fees

Fiscal Year

General Fund

Other Special Revenue Funds

Total All Funds

2003

$275,772

$0

$275,772

2004

$513,919

$0

$513,919

2005

$446,546

$0

$446,546

2006

$464,782

$250

$465,032

2007

$503,250

$250

$503,500

2008

$424,891

$0

$424,891

2009

$490,405

$0

$490,405

2010

$477,368

$0

$477,368

2011

$441,875

$250

$442,125

2012

$459,687

$0

$459,687

 

Revenue Notes – Health Care Institution License Fees

Although the statutes indicate that revenue from Health Care Institutions License Fees accrues to the General Fund, these fees were recorded as dedicated revenue through fiscal year 1998.  In fiscal years 1999 and thereafter, some small amounts are still recorded as dedicated revenue.

 

History – Health Care Institution License Fees

Adopted in 1945.  Amended in 1991 by PL 1991, c. 752 to increase the cap on the fee for ambulatory surgical facility from $250 to $500 effective June 30, 1992, and by PL 1991, c. 765 to add a $5 per bed surcharge for nursing facilities to fund the long-term care ombudsman program.  Effective July 1, 2003, PL 2003, c. 20, Part K, Section 4, as amended by PL 2003, c. 507, Part C, increased the annual hospital license fee to $40 per bed and the nursing facility license fee to $26 per bed.

 

 

RAILROAD COMPANY TAX – 36 M.R.S.A. c. 361 & 23 M.R.S.A. §7103

 

An excise tax is levied upon gross transportation receipts.  The statutory rate varies from 3.25% to 5.25%, depending on the relation of net railway operating income to gross transportation receipts.  The tax is decreased by the amount by which 5 ¾% of operating investment exceeds net railway operating income, but may not be less than ½ of 1% of gross transportation receipts.

 

 

Railroad Company Tax

Fiscal Year

General Fund

Other Special Revenue Funds

Multimodal Transportation Fund

Total All Funds

2003

$165,987

$150,000

$0

$315,987

2004

$211,413

$150,000

$0

$361,413

2005

$398,316

$150,000

$0

$548,316

2006

$0

$20,000

$598,087

$618,087

2007

$0

$0

$562,415

$562,415

2008

$0

$20,000

$535,064

$555,064

2009

$0

$0

$676,013

$676,013

2010

$0

$0

$348,292

$348,292

2011

$0

$0

$620,956

$620,956

2012

$0

$0

$562,388

$562,388

 


 

Revenue Notes – Railroad Company Tax

Until July 1, 2005, the Railroad Company Tax accrued to the General Fund with the exception of $150,000 which was annually transferred to the Rail Preservation and Assistance Fund.  From July 1, 2005 to September 17, 2005 the entire tax was dedicated to the Rail Preservation and Assistance Fund.   After September 17, 2005, the tax accrued to the State Transit, Aviation and Rail Transportation Fund with the exception of $20,000 annually, which accrued to the Railroad Freight Service Quality Fund.  After June 30, 2008, the entire tax accrues to the State Transit, Aviation and Rail Transportation Fund.  The State Transit, Aviation and Rail Transportation Fund (renamed the Multimodal Transportation Fund program in PL 2011, c. 649, Sec. E-13) is an enterprise fund and is not one of the operating funds included in the revenue tables in Section III.

 

History – Railroad Company Tax

Adopted 1872-1883.  Amended in 1951 reducing gross transportation receipts tax by .25%.  Amended in 1955 from 2 to 1.75%.  Amended in 1961 establishing new minimum rates.  Amended in 1972 to 0.9% for 1972 and 0.25% thereafter.  Amended to provide that “operating investment” in 1979 and 1982 will include freight car operating leases of 10 years or more.  Amended in 1984 to extend the 10-year freight car lease provision for excise taxes payable in 1984 and 1985.  Amended in 1985 to extend the 10-year provision to taxes payable in 1986.  Amended in 1989 to increase the minimum rate to 0.5%.  Amended by PL 2003, c. 498 to require all revenue to be deposited in the Rail Preservation and Assistance Fund beginning July 1, 2005.  Amended by PL 2005, c. 457 to require that all revenue except for $20,000 annually to the Railroad Freight Service Quality Fund be deposited to the State Transit Aviation and Rail Transportation Fund (renamed the Multimodal Transportation Fund program in PL 2011, c. 649, Sec. E-13) effective September 17, 2005.  This final provision was repealed 90 days after the adjournment of the Second Regular Session of the 123rd Legislature.

 

 

TELECOMMUNICATIONS EXCISE TAX – 36 M.R.S.A. §457 & §458

 

A excise tax is imposed on telecommunications equipment at a rate of 19.2 mills in fiscal year 2012.  After July 1, 2012, the State Tax Assessor shall make the assessment by March 30th annually starting March 30, 2013.  The tax must still be paid by August 15th.  The State Tax Assessor shall apply the municipal tax rate to the just value of qualified telecommunications equipment adjusted by the certified assessment ratio to calculate a mill rate for the excise tax. This telecommunication equipment continues to be exempt from ordinary local property taxation.

 

Telecommunications Excise Tax

Fiscal Year

General Fund

Total All Funds

2003

$29,119,156

$29,119,156

2004

$27,779,775

$27,779,775

2005

$25,004,898

$25,004,898

2006

$20,627,030

$20,627,030

2007

$16,317,029

$16,317,029

2008

$16,858,472

$16,858,472

2009

$19,536,483

$19,536,483

2010

$17,523,926

$17,523,926

2011

$17,668,244

$17,668,244

2012

$10,869,966

$10,869,966

 

Revenue Notes – Telecommunications Excise Tax

Revenue from this tax accrues to the General Fund.  Through fiscal year 1999, the portion of the revenue from these tax collections not associated with the prepayment was recognized as revenue in the year in which the taxes were levied, although not payable until June 1st of the next fiscal year.  The portion of the revenue associated with the prepayment is accounted for on a cash basis in the year that it is paid.  With the elimination of the prepayment and the change of the payment date, all revenue from this tax is accrued and recognized as revenue in the same fiscal year as the assessment.

 


 

History – Telecommunications Excise Tax

Originally enacted as a property tax on telephone and telegraph property in 1883.  Changed to a tax on gross receipts in 1901.  Expanded in 1986 (PL 1985, c. 651) to cover telecommunications.  Replaced in 1987 (PL 1987, c. 507) with a tax on telecommunications personal property at the rate of 21 mills in 1988 and 27 mills thereafter.  Amended by PL 1991, c. 121 to add a prepayment of ½ of the subsequent year’s tax by June 1st.  Amended by PL 1999, c. 731, Part W and PL 1999, c. 732 Part H to eliminate the prepayment and to change the payment date to August 15th.  PL 1999, c. 731, Part W also implemented a phased-in reduction of the rate by one mill each year from 27 mills in 2002 until it reaches the rate of 20 mills 2009.  PL 2001, c. 559, §H-1 delayed each phased-in reduction by one year.  PL 2009, c. 1, Part P changed the rate in 2009 from 20 mills to 22 mills.  PL 2009, c. 213, Part P changed the rates for 2010 and 2011 to 22 mills, and further lowered the rates beginning in 2012 to 19 mills in 2012 and 18 mills in 2013 and subsequent years.  PL 2011, c. 430 repealed the telecommunications personal property tax and established an excise tax on telecommunications equipment at 19.2 mills in 2012. For fiscal years 2013 and subsequent years, the State Tax Assessor will apply the municipal tax rate to the just value of the equipment adjusted by the certified assessment ratio.

 

 

PUBLIC UTILITIES ASSESSMENTS – 35-A M.R.S.A. §116, §3211-A, §3211-C, §7104, §7104-B & 26 M.R.S.A. §1419-A

 

Public Utilities Commission Assessment.  Each transmission and distribution, telephone, gas and water utility and ferry regulated by the Public Utilities Commission (PUC) is subject to an annual assessment on its intrastate gross operating revenues.  The assessment collected as dedicated revenue accruing to the PUC Regulatory Fund is intended to produce sufficient revenue for allocations to the Fund approved by the Legislature.  The PUC sets the assessment annually on May 1st with payment due each July 1st.  Revenue from the assessment is recorded when received.  The PUC exempts utilities from assessment when gross annual revenues are less than or equal to $50,000, per 35-A M.R.S.A. §116(1)(E).

 

The rates for assessments are calculated based on the fiscal year budget of the PUC, which is multiplied by the percentage of time the PUC spends regulating each utility type in the prior fiscal year.  Fiscal year 2013 assessment rates and amounts follow in the table below:

 

Utility Type

Percentage of time dedicated by PUC to each Utility Type

Allocated Assessment

Electric

52.835%

$2,609,662

Gas

8.840%

$436,607

Telephone

31.314%

$1,546,661

Water

7.012%

$346,318

Ferries

0.00%

$0

TOTALS

100%

$4,939,248

 

Public Advocate Assessment.  Every utility subject to regulation by the PUC is also subject to the Public Advocate Assessment.  The dedicated revenue generated by this assessment supports the costs of the Office of the Public Advocate (OPA), and may not exceed the amount allocated by the Legislature for that purpose.  The OPA tracks the time it dedicates to each utility type, calculates a percentage that forms the basis for its assessment on intrastate gross operating revenues, and then levies its own assessments on May 1st with payment required by July 1st. 

 


 

Additionally, the following separate assessments are made:

 

 

 

 

 

 

·         Prepaid Wireless Fee Fund: The PUC establishes a “prepaid wireless fee” imposed on prepaid wireless telecommunications services, which includes fees to be contributed to the Maine Universal Service Fund and the Telecommunications Education Access Fund, and the E-9-1-1 surcharge further described below. Sellers of prepaid wireless service are required to collect the fees and surcharge for each retail transaction occurring in the State and remit them to the State Tax Assessor in the same manner as the sales tax. The amount of the prepaid wireless fee must appear separately on an invoice or receipt, when practicable. State Tax Assessor remits the fees and surcharges to the PUC for distribution to the E-9-1-1 fund, Maine Universal Service Fund and the Telecommunications Education Access Fund.

 

Public Utilities Assessments

Fiscal

Other Special Revenue Funds

Total All Funds

Year

PUC Assessments

Public Advocate Assessment

2003

$8,292,063

$1,334,203

$9,626,266

2004

$12,121,859

$1,619,749

$13,741,608

2005

$14,590,190

$2,092,762

$16,682,952

2006

$15,477,789

$1,605,101

$17,082,890

2007

$14,389,587

$1,552,310

$15,941,897

2008

$22,701,673

$1,571,293

$24,272,966

2009

$19,491,308

$1,719,482

$21,210,790

2010

$20,327,675

$1,690,150

$22,017,825

2011

2012

$21,799,593

$18,434,113

$1,716,560

$1,713,582

$23,516,153

$20,147,695

 

Revenue Notes – Public Utilities Assessments

The revenues generated by the PUC assessment, the Electric Conservation Programs assessment, the Solar Energy Rebate Program assessment and the Public Advocate assessment accrue as dedicated revenue.  The amounts above do not reflect assessments retained by utilities, such as the Maine Universal Service Fund assessment, the contributions to the Telecommunications Education Access Fund and contributions to the Prepaid Wireless Fee Fund .

 

History – Public Utilities Assessments

Adopted in 1979.  Original PUC assessment was established by PL 1979, c. 427 at no more than .2% of intrastate gross operating revenues of each regulated utility with total annual revenues not to exceed $150,000.  Amended several times since to increase the percentage of intrastate gross operating revenues and to increase the maximum annual revenues.  In PL 2007, c. 16, the assessment cap for the PUC was replaced with language that allows the PUC to set the assessment annually to provide sufficient revenue for the level of expenditures allocated by the Legislature for operating the PUC.  On April 12, 2012, the Legislature enacted P L. 2011, c. 623 exempting all telecommunications carriers, except those providing Provider of Last Resort (POLR) service, from regulation effective August 30, 2012.

 

The assessment for the Office of the Public Advocate was adopted by PL 1989, c. 571, Part A and was limited to no more than $189,000 in fiscal year 1990 with a repeal date of June 30, 1990.  Amended several times since to increase the amount of the assessment.  PL 1997, c. 424 amended the Public Advocate Assessment to remove the specific dollar amount and fiscal year references, and authorized the assessment at a level sufficient to support the legislative allocations for the Public Advocate in any given fiscal year.  PL 2001, c. 28 §1 authorized the Public Advocate to utilize unexpended funds in excess of 10% of the total annual assessment authorized that were carried forward at the end of fiscal years 2001 and 2002 instead of reducing the utility assessment.

 

The Conservation Program Fund was created in 2002 by PL 2001, c. 624.  Revenues for this fund are generated by an assessment on transmission and distribution utilities.  The current level of the assessment is not to exceed 0.145 cent per kilowatt hour established by PL 2005, c.459.  In 2007, an additional assessment was authorized under 35-A M.R.S.A. §3211-A subsection (4-A) which allowed the PUC to assess transmission and distribution utilities “as necessary to realize all available efficiency and demand reduction resources in the state that are cost-effective, reliable and feasible …”  (PL 2007, c. 317); this provision has now been repealed and replaced, transferring this authority to the Efficiency Maine Trust.    

 

The Solar Energy Rebate Program Fund was created by PL 2005, c. 459.  The Solar Energy Rebate Program and Fund statute, 35-A M.R.S.A. section 3211-C, was scheduled to be repealed on December 31, 2008.  PL 2007, c. 158 extended the sunset date for the Solar Energy Rebate Program to December 31, 2010.  PL 2007, Ch. 661 created a wind rebate program.  

 

The Renewable Resource Fund was created by PL 1999, c. 372  to allow retail customers of electricity to make voluntary contributions to fund renewable research and development and fund community demonstration projects using renewable energy technologies.  The Fund was initially administered by the State Planning Office.  In 2007, administration of the Fund was transferred from the State Planning Office to the PUC.  (PL 2007, c. 18). 

 

The Maine Universal Service Fund (MUSF) was inaugurated pursuant to Chapter 288 of the PUC’s rules, as per PL 1997, c. 692.  PL 2005, c. 131 authorized the PUC to require contributions to the Maine Universal Service Fund to support public interest pay phones.  PL 2005, c. 305 authorized the PUC to require contributions to the Maine Universal Service Fund to support telecommunications relay services.  In 2006, Resolve 2005, c. 141 directed the PUC to allocate funds from the Maine Universal Service Fund on a one-time basis to hire an independent consultant to conduct a needs assessment regarding the telecommunications needs of federally qualified health centers and to assist federally qualified health centers in applying for funding from the federal universal Service Fund under the Federal Communication Commission’s Rural Health Care program.

 

In 2004, PL 2003, c. 553 created the Communication Equipment Fund and directed the PUC to transfer money from the Maine Universal Service Fund to capitalize the Fund.  PL 2005, c. 336 authorized the PUC to require contributions to the Maine Universal Service Fund to support emergency alert telecommunication service through a transfer of funds from the Maine Universal Service Fund to the Communication Equipment Fund.  In PL 2007, c. 224, the Legislature adopted changes to the funding levels for the specific programs supported by the Communication Equipment Fund.

 

The Telecommunications Education Access Fund was authorized in 1996 by PL 1995, c. 631

 

PL 2009, c. 372 transferred the responsibility for administering the Conservation Program Fund, the Solar and Wind Energy Rebate Program and the Renewable Resource Fund to the Efficiency Maine Trust effective July 1, 2010.  This law repealed the Solar and Wind Energy Rebate Program effective January 1, 2011.

 

PL 2011, c. 600 established the Prepaid Wireless Fee Fund beginning January 1, 2013.

 

 

E-9-1-1 SURCHARGE – 25 M.R.S.A. §2927

 

A surcharge is assessed on each residence and business telephone exchange line, including private branch exchange (PBX) lines and Centrex lines, cellular or wireless telecommunications service customers, including prepaid wireless telecommunications service customers, interconnected Voice over Internet Protocol (VoIP) service customers, and semi-public coin and public access lines.  This surcharge is limited to not more than 25 lines or numbers per customer billing account, except that this limitation does not apply to prepaid wireless telecommunications services.  The revenue generated by the surcharge supports the implementation, operation and management of a statewide emergency E-9-1-1 telephone system, and is administered by the Emergency Services Communication Bureau within the Public Utilities Commission (PUC).  The surcharge is currently 45¢ per line per month. 

 


 

E-9-1-1 Surcharge

Fiscal Year

Other Special Revenue Funds

Total All Funds

2003

$7,885,497

$7,885,497

2004

$7,948,519

$7,948,519

2005

$8,279,202

$8,279,202

2006

$8,244,839

$8,244,839

2007

$8,499,625

$8,499,625

2008

$8,412,478

$8,412,478

2009

$5,552,688

$5,552,688

2010

$6,798,439

$6,798,439

2011

$8,370,233

$8,370,233

2012

$8,400,352

$8,400,352

 

Revenue Notes – E-9-1-1 Surcharge

This revenue is dedicated to support a statewide E-9-1-1 system administered by the Emergency Services Communication Bureau within the PUC.

 

 

History – E-9-1-1 Surcharge

Adopted in 1994.  The E-9-1-1 surcharge was established by PL 1993, c. 566 at a rate of 2¢ per month per line beginning on August 1, 1995.  PL 1995, c. 672 continued the surcharge at 2¢ until August 1, 1996, when it was increased to 20¢ per month per line.  The surcharge was increased by PL 1997, c. 409 to a rate of 32¢ per month per line or number effective on August 1, 1998.  The surcharge was repealed effective September 18, 1999 through a sunset provision included in PL 1997, c. 409.  PL 1999, c. 651 reinstated the E-9-1-1 surcharge effective April 10, 2000 at a rate of 32¢ per month per line or number.  PL 2001, c. 439 Part EEEE increased the surcharge to 50¢ per month per line or number until 90 days following adjournment of the First Regular Session of the 121st Legislature, after which it returned to 32¢ per month per line or number.  PL 2003, c. 359 repealed the return to 32¢ per month per line or number and retained the 50¢ surcharge per month per line or number.  PL 2007, c. 68 extended the scope of the surcharge to subscribers of prepaid wireless service and VoIP services.   PL 2007, c. 637 reduced the surcharge from 50¢ to 30¢ per month per line or number or, in the case of prepaid wireless telecommunications services, 30¢ per month or 30-day increment of service per customer.  PL 2009, c. 416 increased the surcharge to 37¢ per line per month effective July 1, 2009 and 52¢ per line per month beginning July 1, 2010, but the 52¢ surcharge was scaled back to 45¢ per line per month by PL 2009, c. 617.    PL 2009, c. 400 changed the application of the surcharge for prepaid wireless telecommunications service from per month or 30-day increment of service per customer to per retail transaction.  Beginning January 1, 2013, PL 2011, c. 600 requires the PUC to deposit the surcharge for prepaid wireless telecommunications service into Prepaid Wireless Fee Fund as part of the “prepaid wireless fee.” Within 30 of receipt, the portion of prepaid wireless fees attributable to the E-9-1-1 surcharge is deposited into the account established pursuant to Title 25, section 2927, subsection 1-H.

 

 

REAL ESTATE TRANSFER TAX – 36 M.R.S.A. c. 711-A

 

A tax is imposed on each deed transferring title to real property in Maine and on the transfer of any controlling interest in an entity with a fee interest in real property in Maine, at the rate of $2.20 for each $500 or fractional part of the value of the real property.  There are certain exemptions. 

 

Of the total tax, 50% is imposed on the grantor (seller) and 50% is imposed on the grantee (purchaser). Ninety percent of the tax collected during the previous month is forwarded by each Registrar of Deeds to the State Tax Assessor.  The remaining 10% is retained by the county and accounted for as reimbursement for services rendered in collecting the tax. 

 


 

Of the 90% that is forwarded to the State, 50% is credited to the Maine State Housing Authority’s Housing Opportunities for Maine (HOME) Fund as Other Special Revenue Funds established by 30-A M.R.S.A. §4853, and 50% is credited to Maine State Housing Authority’s Maine Energy, Housing and Economic Recovery Fund as Other Special Revenue Funds established by 30-A M.R.S.A. §4863 beginning fiscal year 2012.  Once the amount credited to the Maine Energy, Housing and Economic Recovery Fund equals the amount certified by Maine State Housing Authority for bond obligations, the remainder is credited to the General Fund.  Beginning July 1, 2002, transfers of controlling interests in entities owning real property are subject to the same tax on the value of the real property owned.  After deduction of the 10% county share, the remaining 90% of proceeds from the tax on the transfers of controlling interests accrues to the General Fund.  Beginning June 15, 2010, real estate transfer taxes are imposed on the purchase and sale of foreclosure properties and the tax on the purchase and sale of foreclosed properties is dedicated to the Department of Professional and Financial Regulation, Bureau of Consumer Credit Protection to fund its statewide outreach and housing counseling services. In fiscal years 2004 through 2015, a portion of the revenue attributable to the tax on transfer of real property that would ordinarily be credited to the HOME Fund is credited to the General Fund as follows in the table below:

 

 

Fiscal Year

Transfer to General Fund from HOME Fund share

2004

               $7,500,000

2005

               $7,500,000

2006

               $7,500,000

2007

               $7,687,067

2008

               $5,000,000

2009

               $8,062,414

2010

               $3,320,000

2011

               $3,720,000

2012

               $3,830,000

2013

               $3,950,000

2014

                  $245,160

2015

               $1,879,560

 

 

Real Estate Transfer Tax

Fiscal Year

General Fund

Other Special Revenue Funds

Total All Funds

HOME Fund

Bureau of Consumer Credit Protection

Energy Housing and Economic Recovery Fund

2003

$10,770,668

$10,758,160

$0

$0

$21,528,828

2004

$22,196,221

$6,216,471

$0

$0

$28,412,693

2005

$24,113,439

$8,881,845

$0

$0

$32,995,284

2006

$24,595,580

$9,356,426

$0

$0

$33,952,006

2007

$22,206,638

$7,281,652

$0

$0

$29,488,291

2008

$17,465,240

$7,154,896

$0

$0

$24,620,136

2009

$17,184,746

$602,680

$0

$0

$17,787,426

2010

$12,181,181

$5,418,751

$1,583,850

$0

$19,183,782

2011

$13,815,942

$5,089,783

$713,796

$0

$19,619,521

2012

$ 8,934,936

$4,808,591

$592,631

$4,305,635

$18,641,792

 


 

Revenue Notes – Real Estate Transfer Tax

Year-end accrual of the Real Estate Transfer Tax began at the end of fiscal year 2000. As noted above, the Real Estate Transfer Tax accrues to the HOME Fund and the Maine Energy, Housing and Economic Recovery Fund. Once the amount in the Maine Energy, Housing and Economic Recovery Fund equals the amount certified by Maine State Housing Authority for bond obligations any remaining revenue accrues to General Fund. Revenue derived from the tax imposed on the transfer of controlling interest in real property accrues to the General Fund.  Beginning in fiscal year 2010, revenues derived from the tax imposed on the transfer of property due to a foreclosure accrue to the Department of Professional and Financial Regulation, Bureau of Consumer Credit Protection as Other Special Revenue Funds for the purpose of providing statewide outreach and housing counseling services together with the Maine State Housing Authority.

 

History – Real Estate Transfer Tax

The Real Estate Transfer Tax was originally established by P& S 1967, c. 154.  Originally enacted as 36 M.R.S.A. c. 712, it was repealed and replaced by c. 711-A.  The tax applied to the transfer of title to real property at a rate of $1 for transfers between $251 and $500 and 55¢ for each $500 or fraction thereof, payable by the grantee.  Ninety percent of the total revenue collected was forwarded to the State for deposit in the General Fund, and the remaining 10% was retained by the county.  PL 1975, c. 572 repealed and replaced those provisions with a Real Estate Transfer Tax at a rate of 55¢ for each $500 or fraction thereof, payable by the grantor.  Eighty-five percent of the total revenue was forwarded to the State for deposit in the General Fund, and the remaining 15% was retained by the county.  The tax was amended by PL 1983, c. 859 to increase the rate of tax from 55¢ to $1.10 per $500, and to change the distribution of total revenues to 90% for the State and 10% for the counties.  PL 1985, c. 381 amended the tax to make both the grantee and grantor subject to the tax, and to distribute the 90% of total revenue forwarded to the state equally between the General Fund and the HOME fund. PL 1993, c.398, §2 increased the tax rate to $2.20 for each $500 of property value.

 

The distribution of the 90% of total revenue forwarded to the state has been amended several times.  PL 1991, c. 591, Part P, PL 1991, c. 622, Part K, PL 1993, c. 6, Part D, PL 1993, c. 410, Part C, PL 1995, c. 368, Part K, PL 1997, c. 24, Part C and PL 1997, c. 759 all modified the distribution between the General Fund and the HOME Fund.  PL 2001, c. 439, Part XXX provided for a transfer of up to $200,000 of the General Fund portion of revenues to the Community Forestry Fund.  PL 2001, c. 559, Part I repealed the Community Forestry Fund transfer provisions and added transfers of controlling interests to the tax beginning July 1, 2002.  Revenue generated by the transfer of controlling interests is credited to the General Fund and is not subject to distribution to the HOME fund. 

 

Other changes to the distribution of the State’s share include PL 2003, c. 20, Part V, PL 2005, c. 12, Part H, which amended the distribution for fiscal years 2004 through 2007 to provide that the General Fund portion of the 90% paid to the State is $7,500,000 plus 50% of the remaining revenue, and PL 2005, c. 644, which amended the distribution in fiscal year 2007 to provide a General Fund share of $7,687,067 plus 50% of the remaining revenue.  PL 2007, c. 240, Part H amended the distribution for fiscal years 2008 and 2009.  PL 2007, c. 539, Part WW amended the distribution formula through fiscal year 2013.  PL 2009, c. 372, Part E established the Maine Energy, Housing and Economic Recovery Program within the Maine State Housing Authority, and authorized the use of the General Fund portion of the Real Estate Transfer Tax to pay for the Maine State Housing Authority’s obligations relating to bonds issued or planned to be issued, beginning in fiscal year 2012.  PL 2009, c. 402, effective June 15, 2009 applied the real estate transfer tax to foreclosed properties and dedicated the revenue from the tax on these properties to the Department of Professional and Financial Regulation, Bureau of Consumer Credit Protection, in order to provide housing counseling services and mortgage assistance to financially distressed home owners.  PL 2011, c. 453 continues to transfer to the General Fund a portion of the Real Estate Transfer Tax that would otherwise accrue to the HOME fund in fiscal years 2013 and 2014 as an offset for General Fund revenue expenditures for extending the Maine historic preservation tax credit.

 

 

UNORGANIZED TERRITORY TAXES – 36 M.R.S.A. c. 115

 

The Unorganized Territory Educational and Services Tax.  The Unorganized Territory Educational and Services Tax is levied upon non-exempt real and personal property located in the Unorganized Territory Tax District as of April 1st of each year for the purpose of funding municipal-type services in the unorganized territory.  The Unorganized Territory Tax District includes all of the unorganized territory of the State of Maine.  The tax is computed and apportioned on the basis of the State Tax Assessor’s determination of the value of the property.  The tax rate is calculated to raise the municipal cost component and the unorganized territory’s portion of the county tax.  The municipal cost component is the cost of funding services in the Unorganized Territory Tax District that would not be borne by the State if the Unorganized Territory Tax District were a municipality.  The municipal cost component is comprised of the following categories of services provided for the Unorganized Territory:  fiscal administration; land use regulation; property tax assessment; county reimbursement for services; education; forest fire protection; and general assistance.  The Legislature determines the municipal cost component for the next fiscal year.  The State Tax Assessor computes the mill rates for the Unorganized Territory Educational and Services tax.  A mill rate is calculated for the unorganized territory in each county based on the cost of statewide services plus county services plus county tax.

 

Revenue from this tax is credited to the Unorganized Territory Educational and Services Fund which is used to reimburse the state and county governments for the cost of providing municipal services in the Unorganized Territory and to pay the county tax.

 

Other Unorganized Territory Taxes.  The State also collects excise taxes in the Unorganized Territory on motor vehicles, watercraft and aircraft.  These revenues are distributed to counties quarterly and applied toward the cost of municipal-type services.

 

Unorganized Territory Taxes

Fiscal Year

General Fund

Other Special Revenue Funds

Total All Funds

2003

$9,930,103

$7,502,502

$17,432,605

2004

$10,709,308

$6,565,101

$17,274,409

2005

$10,622,666

$7,759,063

$18,381,729

2006

$11,559,305

$8,983,844

$20,543,149

2007

$11,376,293

$9,548,152

$20,924,445

2008

$12,217,081

$8,184,347

$20,401,428

2009

$12,633,755

$9,549,049

$22,182,804

2010

$13,217,886

$14,971,669

$28,189,555

2011

$13,381,506

$14,464,021

$27,845,528

2012

$10,726,997

$16,762,565

$27,489,562

 

Revenue Notes – Unorganized Territory Taxes

General Fund amounts above reflect amounts transferred to the General Fund each year as reimbursement for the General Fund costs of the municipal cost component.  The Other Special Revenue Funds include 3 primary categories.  The first, “Unorganized Territory Taxes,” includes the amounts collected for the municipal cost component.  A portion of the amount is retained by the State for certain administrative costs within the Department of Audit and Maine Revenue Services.  The remainder represents the county taxes collected by the State and distributed to the counties.  The third category, “Other Unorganized Territory Taxes,” is comprised of the excise taxes on motor vehicles, watercraft and aircraft, which are distributed to the counties quarterly.

 

History – Unorganized Territory Taxes – History

Enacted in 1978 by PL 1977, c. 698.  Administrative provisions amended by PL 1985, c. 458.

 

 

COMMERCIAL FORESTRY EXCISE TAX – 36 M.R.S.A. c. 367

 

This tax is assessed at a fixed amount per acre against owners of more than 500 acres of forested land in Maine.  The tax funds 40% of the costs of the State’s forest fire protection activities.  The tax is determined by the State Tax Assessor from information provided and certified by the Commissioner of the Department of Agriculture, Conservation and Forestry.  That information includes the current fiscal year’s appropriations and allocations for, and anticipated revenues from, forest fire protection.  It also includes adjustments based on the preceding fiscal year’s actual expenditures and revenues from forest fire protection.  For fiscal year 2011, an additional one-time special assessment of $400,000 was added to the regular assessment.

 


Commercial Forestry Excise Tax

Fiscal Year

General Fund

Total All Funds

2003

$3,172,724

$3,172,724

2004

$2,907,340

$2,907,340

2005

$2,890,635

$2,890,635

2006

$2,888,700

$2,888,700

2007

$3,851,783

$3,851,783

2008

$3,499,962

$3,499,962

2009

$3,452,531

$3,452,531

2010

$3,481,145

$3,481,145

2011

$3,501,277

$3,501,277

2012

$3,586,005

$3,586,005

 

Revenue Notes – Commercial Forestry Excise Tax

Revenue from the Commercial Forestry Excise Tax accrues to the General Fund.

 

History – Commercial Forestry Excise Tax

Adopted in 1985, c. 514, to replace the “Forest Fire Suppression Tax” (which, in turn, replaced the Forest District Tax formerly in the Unorganized Territory and selected adjoining towns and plantations).  For fiscal year 1986, the tax assessment was determined by dividing $9,827,150 by the total number of adjusted acres of commercial forestland, rounded to the nearest 1/10 of a cent and multiplying by the number of adjusted acres owned by each taxpayer.  For fiscal years 1987-1995, the tax raised 50% of the costs of forest fire suppression; for fiscal year 1996, 45% of the costs; and for fiscal year 1997 and thereafter 40% of the costs.  PL 2009, c. 571, Part BBBB added a one-time special assessment of $400,000 in fiscal year 2011.

 

 

SPRUCE BUDWORM MANAGEMENT TAX – 12 M.R.S.A. §8427

 

The Spruce Fir Forest Protection District consists of land that has been accepted for silvicultural treatment designation under 12 M.R.S.A. §8424.  Lands submitted remain under the jurisdiction of the Act for five years.  Persons owning parcels of forest land within the Spruce Fir Forest Protection District are subject to pre-project and post-project excise taxes for the privilege of owning and operating such forest land.  The pre-project excise tax is computed by multiplying the ratio of the planned spray acres for each landowner to the total planned spray acres for all landowners controlling 1% or more of the spray acres in the project by the total project cost.  The post-project excise tax is designed to raise 90% of the state cost of each year’s program from the owners of forest land actually sprayed, and 10% from all taxable acres in the Spruce Fir Forest Protection District.  The amount of the post-project excise tax payable by each landowner is reduced by the amount of the pre-project excise taxes payable for the calendar year.

 

With the decline of spruce budworm populations in the mid-1980’s, no new acreage was submitted to the District.  There are presently no parcels enrolled in the District.  Although there is no immediate need for this mechanism, the Act remains in effect.

 

Revenue Notes – Spruce Budworm Management Tax

Revenue from the Spruce Budworm Management Tax accrues as dedicated revenue to the Department of Agriculture, Conservation and Forestry.  This tax has not generated or affected revenue collections since 1989.

 

History – Spruce Budworm Management Tax

Enacted by PL 1975, c. 764, initially the Spruce Budworm Management tax was established at 37¢ per applicable softwood acre in 1978; 38¢ per softwood acre in 1979 and 18.5¢ per mixed wood acre in 1978 and 19¢ in 1979.  Amended by PL 1979, c. 545 to change the tax per softwood acre to 37¢ for 1978, $1.24 for 1979 and 35¢ for 1980 and 1981; the tax per mixed wood acre was changed to 62¢ for 1979 and 17.5¢ for 1980 and 1981.  Amended by PL 1979, c. 737 to delineate a pre-project excise tax of $1.45 per softwood acre for 1980 and 1981 and 72.5¢ per mixed wood acre for 1980 and 1981 and a post-project excise tax to be computed on the basis of past cost and actual need.  For the years after 1981, PL 1979, c. 737 established a pre-project and post-project tax structure in which the total amount collected is based largely on current costs.

 

 

CORPORATION FEES AND LICENSES – 10 M.R.S.A. Chapter 301-A, 13 M.R.S.A., 13-B M.R.S.A., 13-C M.R.S.A. & 31 M.R.S.A., Chapters 13, 15, 17, 19 and 21.

 

The Bureau of Corporations, Elections and Commissions within the Department of the Secretary of State collects filing fees from business corporations, non-profit corporations, limited partnerships, limited liability companies and limited liability partnerships, trade or service mark and various other filing fees.  These filings include:

 

 

Filing fees collected by the Department of the Secretary of State range from $2.00 per page for a copy for any document on file to $250.00 for filing an application to transact business by a foreign (out of state or country) business entity.  The current fee schedule is available from the Office of Fiscal and Program Review or from the Department of the Secretary of State website at http://www.maine.gov/sos/cec/corp/.

                                                                  

Corporation Fees and Licenses

Fiscal Year

General Fund

Total All Funds

2003

$4,185,546

$4,185,546

2004

$4,525,994

$4,525,994

2005

$6,884,833

$6,884,833

2006

$7,710,325

$7,710,325

2007

$7,935,294

$7,935,294

2008

$7,969,156

$7,969,156

2009

$7,931,072

$7,931,072

2010

$8,168,981

$8,168,981

2011

$8,479,743

$8,479,743

2012

$8,496,444

$8,496,444

 

Revenue Notes – Corporate Filing Fees

Revenue generated from Corporate Filing Fees, which includes all revenue from the business entity and non-profit corporation filing fees described above, accrues to the General Fund.

 

 

PROFESSIONAL AND OCCUPATIONAL LICENSING FEES – 32 M.R.S.A.

 

The Department of Professional and Financial Regulation has responsibility for the direct administration of 5 professions, 31 professional licensing boards internal to the department and 6 professional licensing boards affiliated with the department.  There are dedicated fees connected with each statutorily regulated profession.  A complete list of these fees, as well as fees for professions regulated by other organizational units with the department, is available from the Department of Professional and Financial Regulation.

 

Professional and Occupational Licensing Fees

Fiscal Year

Other Special Revenue Funds

Total All Funds

2003

$10,610,753

$10,610,753

2004

$11,110,269

$11,110,269

2005

$11,720,978

$11,720,978

2006

$13,309,213

$13,309,213

2007

$12,363,065

$12,363,065

2008

$13,407,748

$13,407,748

2009

$12,825,883

$12,825,883

2010

$12,678,149

$12,678,149

2011

$13,161,538

$13,161,538

2012

$13,921,850

$13,921,850

 

Revenue Notes – Professional and Occupational Licensing Fees

The revenue amounts above include revenue from a number of occupation and professional license fees, not otherwise classified within this report including a small amount of revenue collected by departments and agencies other than the Department of Professional and Financial Regulation.

 

 

MILK HANDLING FEE – 36 M.R.S.A. §4902

 

A fee is imposed on the handling of packaged milk for retail sale in Maine.  The fee rate is determined monthly in relation to the price of milk.  The fee ranges from $0.04 per gallon when the price of milk is $21.00 per hundredweight or more to $0.36 per gallon when the price of milk is $16.50 to $16.99 per hundredweight.  If the basic price falls below $16.50 per hundredweight, then for each $.50 decrease in the basic price, the rate of the milk handling fee increases by $.04 per gallon until the handling fee reaches a maximum of $.84 per gallon.  There is no fee on the handling in Maine of packaged milk for sale in containers that are less than one quart or 20 or more quarts in volume, or packaged milk that is sold to an institution that is owned or operated by the State or Federal Government.

 

Milk Handling Fee

Fiscal Year

General Fund

Total All Funds

2006

$1,867,527

$1,867,527

2007

$2,561,972

$2,561,972

2008

$631,997

$631,997

2009

$6,605,226

$6,605,226

2010

$10,105,521

$10,105,521

2011

$3,845,823

$3,845,823

2012

$1,997,125

$1,997,125

 

Revenue Notes – Milk Handling Fee

Revenue from this fee accrues as General Fund revenue.

 


 

History – Milk Handling Fee

Enacted by PL 2005, c.396, effective June 17, 2005.  Milk handling fees were adjusted by PL 2007, c. 240, Part PPP and PL 2007, c. 269.  PL 2009, c. 468 established a minimum fee of $.04 per gallon and a maximum fee of $.84 per gallon.

 

 

MILK POOL AND OTHER MILK FEES – 7 M.R.S.A. §2993-A, §2999-A & §3153

 

A fee determined by the Maine Milk Commission within the Department of Agriculture, Conservation and Forestry is imposed on all Maine milk dealers and credited to the Maine Milk Pool for redistribution to Maine and eligible Boston market producers to equalize price differentials in the dual market system.  A fee of $0.10 per hundredweight is applied to all milk produced by each producer and credited to the Maine Dairy Promotion Board.  A fee of $0.015 per hundredweight on all milk sold within Maine is paid to the Maine Dairy and Nutrition Council.

 

 

Milk Pool and Other Milk Fees

Fiscal Year

Other Special Revenue Funds

Total All Funds

2003

$3,260,332

$3,260,332

2004

$3,142,469

$3,142,469

2005

$2,029,416

$2,029,416

2006

$2,797,256

$2,797,256

2007

$4,075,782

$4,075,782

2008

$3,215,539

$3,215,539

2009

$4,131,969

$4,131,969

2010

$4,604,841

$4,604,841

2011

$4,168,039

$4,168,039

2012

$3,751,089

$3,751,089

 

Revenue Notes –Milk Pool and Other Milk Fees

The revenue from this source accrues as dedicated revenue.  The amounts under this heading in these tables include the amounts collected by the Department of Agriculture, Conservation and Forestry and then redistributed to producers.

 

History –Milk Pool and Other Milk Fees

Adopted in 1984 by PL 1983, c. 573.  Amended on a number of occasions to reflect changing conditions of the milk producing industry.  Amended by PL 1985, c. 506 to substitute a promotion fee of 10¢ per hundredweight for a percentage based formula.  Amended by PL 1999, c. 161 to authorize direct payments to the Maine Dairy Promotion Board and the Maine Dairy and Nutrition Council and to reduce the fee paid to the Maine Dairy and Nutrition Council from $0.02 to $0.015 per hundredweight effective June 1, 1999.

 

 

MARINE RESOURCES LICENSE FEES – 12 M.R.S.A., Part 9

 

The Department of Marine Resources collects a wide variety of marine-related licensing fees and permit fees.  Table II-3 on the next page provides a comprehensive list of all fees collected by the Department of Marine Resources.

 


 

TABLE II-3 – Marine Resources License Fees

Commercial Fishing

Fee

 

Sea Urchin

Fee

Resident Commercial Fishing License (Single)

Resident Commercial Fishing License (Crew)

$48.00

$128.00

 

Fishing License – Dragger (incls. surcharge of $160), Zone 2

Fishing License – Dragger, Zone 1

$312.00

 

$25.00

Non-resident Commercial Fishing License (Crew)

Resident Pelagic and Anadromous Fishing License (incls. surcharge of $50)

$481.00

$98.00

 

Fishing License – Diver (incls. surcharge of $160)

Fishing License – Hand, Zone 2

$293.00

 

$152.00

Resident and Crew Pelagic and Anadromous Fishing License (incls. surcharge of $200)

$328.00

 

Fishing License – Hand with Tender (incls. surcharge of $160), Zone 2

Fishing License – Hand, Zone 1

Fishing License – Hand with Tender, Zone 1

$362.00

 

$25.00

$50.00

Non-resident and Crew Pelagic and Anadromous Fishing License (incls. surcharge of $400)

$900.00

 

Fishing License – Raker/Trapper (incls. surcharge of $160)

$312.00

Atlantic Salmon

Atlantic Salmon License

Fee

$15.00

 

Fishing License – Temporary

Fishing License – Surcharge – Wholesale

$36.00

$1,000.00

Non-resident Season Atlantic Salmon License – 16 or Older

Non-resident 3-Day Atlantic Salmon License – 16 or Older

$30.00

$15.00

 

Seafood License with a Sea Urchin Processor Permit

 

Non-resident Atlantic Salmon License – Under 16

Atlantic Salmon Agents Fees

Atlantic Salmon Duplicate License

$5.00

$2.00

$1.00

 

Fishing License – Surcharge – Wholesale Seafood License with a Sea Urchin Buyer Permit

$500.00

Scallop

Fee

 

Eel

Fee

Scallop Fishing License – Non-commercial (incls. surch. of $40)

$58.00

 

Eel Pot License

$125.00

Scallop Fishing License – Dragger (incls. surcharge of $100)

$243.00

 

Elver

Fee

Scallop Fishing License – Diver (incls. surcharge of $100)

$233.00

 

Resident – 1 Dip Net

$105.00

Scallop Fishing License – Hand

$143.00

 

Non-resident – 1 Dip Net

$442.00

Scallop Fishing License – Hand with Tender (incls. surcharge of $100)

$293.00

 

Resident – 1 Fyke Net/Sheldon Trap Only

Non-res. – 1 Fyke Net/Sheldon Trap Only

$105.00

$442.00

Lobster/Crab

Fee

 

Resident – 1 Fyke Net/Trap & Dip Net

$163.00

Fishing License – Class I (incls. surcharge of $41.25)

$167.00

 

Non-resident – 1 Fyke Net/Trap & Dip Net

$500.00

Fishing License – Class II (incls. surcharge of $82.50)

$335.00

 

Resident – 2 Fyke Net/ Traps

$155.00

Fishing License – Class II – 70 or Older (incls. surcharge of $42)

$168.00

 

Non-resident – 2 Fyke Net/Traps

$492.00

Non-resident Fishing License – Apprentice (incls. surcharge of $60)

Non-resident Fishing License – Apprentice Under 18 (incls.

$785.00

$387.00

 

Worm

Marine Worm Digger License

Fee

$50.00

surcharge of $30)

 

 

Sea Weed

Fee

Fishing License – Class III (incls. surcharge of $123.75)

$501.00

 

Resident Sea Weed License

$58.00

Fishing License – Class III – 70 or Older (incls. surcharge of $67)

$250.00

 

Resident Sea Weed License – Supplemental

$29.00

Fishing License – Class I Under Age 18 (incls. surcharge of $5)

$65.00

 

Non-resident Sea Weed License

$230.00

Fishing License – Class I Over Age 70 (incls. surcharge of $5)

$66.00

 

Non-Resident Sea Weed License – Suppl.l

$58.00

Fishing License – Student (incls. surcharge of $5)

$65.00

 

Dealer Licenses

Fee

Fishing License – Apprentice (incls. surcharge of $10)

$132.00

 

Retail Seafood Dealer License

$122.00

Fishing License – Apprentice Under 18 (incls. surcharge of $5)

$65.00

 

Enhanced Retail Certificate

$28.00

Fishing License – Apprentice Over 70 (incls. surcharge of $5)

$57.00

 

Wholesale Seafood Dealer License

$443.00

Fishing License – Non-commercial (incls. surcharge of $5)

$65.00

 

Wholesale Seafood Dealer License –

$87.00

Non-resident Fishing License – Class I (incls. surcharge of $60)

$790.75

 

Supplemental

 

Non-resident Fishing License – Class I – Under Age 18 (incls.surcharge of $30)

Non-resident Fishing License – Class II (incls. surcharge of $120)

Non-resident Fishing License – Class III (incls. surcharge of $180)

$87.00

 

$1,587.00

$2,369.25

 

Wholesale Seafood Dealer License with Lobster Permit – Lobster Promotion Council Surcharge

Marine Worm Dealers License

$250.00

 

 

$64.00

Non-resident Landing Permit (incls. surcharge of $430)

Lobster Trap Tags

$840.25

$0.40

 

Marine Worm Dealers License – Suppl.

Elver Dealer

$26.00

$1,213.00


Green Crab

Fee

 

Elver Dealer – Supplemental

$63.00

Resident Green Crab Fishing License

Non-resident Green Crab Fishing License

$38.00

$76.00

 

Shellfish Transport License

Shellfish Transport License – Supplemental

$529.00

$173.00

Shrimp

Resident Commercial Shrimp License – Single

Resident Commercial Shrimp License – Crew

Non-resident Comm. Shrimp License – Crew

Fee

$38.00

$103.00

$385.00

 

Limited Wholesale Shellfish Harvester’s License Lobster Meat Permit

Lobster Processor License

Lobster Transportation License

$115.00

$159.00

$500.00

$312.00

Shellfish

Fee

 

Lobster Transportation License – Suppl.

$63.00

Commercial Shellfish License

$133.00

 

Lobster Transport License – LPC Surcharge

$250.00

Commercial Shellfish License Over Age 70

$67.00

 

Seaweed Buyer’s License – Resident

$200.00

Mahogany Quahog License

$128.00

 

Seaweed Buyer’s License – Non-resident

$500.00

Mussel License – Hand

Mussel License – Dragger

Surf Clam Boat License

$133.00

$265.00

$265.00

 

Seaweed Buyer’s License – Surcharge

Not to exceed $5/wet ton

Sea Cucumber Fishing License – Dragger

$128.00

 

Duplicate License

$6.00

 


 

Marine Resources License Fees

Fiscal Year

General Fund

Other Special Revenue Funds

Total All Funds

2003

$1,779,428

$382,712

$2,162,140

2004

$2,029,784

$639,468

$2,669,252

2005

$2,029,848

$729,274

$2,759,122

2006

$1,984,784

$752,567

$2,737,350

2007

$1,932,207

$721,560

$2,653,767

2008

$1,974,200

$771,927

$2,746,127

2009

$1,872,820

$720,713

$2,593,533

2010

$2,259,030

$751,710

$3,010,739

2011

$2,305,968

$840,105

$3,146,073

2012

$2,372,498

$814,632

$3,187,129

 

Revenue Notes – Marine Resources License Fees

Most of the revenue collected by the department is deposited into the General Fund; the remaining dedicated revenues are used to directly support specific programs within the department.  In previous Compendiums, Atlantic Salmon License Fees were shown separately.  In fiscal year 2008, the Atlantic Salmon Commission was transferred to the Department of Marine Resources, therefore, 2008 revenue shown above includes these fees, and previous year’s revenue amounts shown above have been updated to reflect these fees.

 

History – Marine Resources License Fees

The first recorded fishing licenses appear to have been authorized by PL 1911, c. 69 in the form of clam licenses issued by municipalities at a fee of not less than $1 and not greater than $5.  Since that time, numerous licenses have been authorized with various fees.  PL 2009, c. 213, Part G increased most license fees by 15% effective in fiscal year 2010.  This 15% increase accrues as General Fund revenue, therefore certain licenses that were strictly dedicated revenue now also partially accrue as General Fund revenue.  PL 2009, c. 559 created the saltwater recreational fishing registry.  Any person who has not indicated on a valid freshwater fishing license that he or she intends to engage in saltwater recreational fishing must register effective January 1, 2011.  This chapter also created the striped bass endorsement and commercial operator’s license effective January 1, 2011.  PL 2009, c. 561 reduced, during calendar years 2010 and 2011 only, the hand fishing sea urchin license and hand fishing sea urchin license with tender fees within the area designated as Zone 1 from $152 to $25 and from $362 to $50 per year, respectively.  PL 2011, c. 421 eliminated the striped bass endorsement and commercial operator’s license, and created the recreational fishing operator’s license, effective July 6, 2011.  PL 2011, c. 598 used the existing sea urchin fishing licenses and created Zone 1 and Zone 2 licenses with different fee structures.  It also repealed the enhanced retail seafood license and created the enhanced retail certificate.

 

 

SALMON TAX – 12 M.R.S.A. §6078-A (Repealed)

 

An excise tax of 1¢ per pound was imposed upon farm-raised salmon.  Funds collected from this tax were deposited into the Aquaculture Monitoring, Research and Development Fund within the Department of Marine Resources.  The salmon tax was repealed effective September 17, 2005.

 

Salmon Tax

Fiscal Year

Other Special Revenue Funds

Total All Funds

2003

$123,590

$123,590

2004

$231,548

$231,548

2005

$19,682

$19,682

 

Revenue Notes – Salmon Tax

Revenue from this excise tax accrued as dedicated revenue to the Department of Marine Resources.  The authority to set the tax by rule and to collect the tax was repealed in fiscal year 2005.

 


 

History – Salmon Tax

First authorized by PL 1991, c. 381.  Amended several times; most recently was a fee established by rules developed by the Department of Marine Resources under the provisions of 12 M.R.S.A. §6078-A.  Repealed by PL 2005, c. 92, §7 effective September 17, 2005.

 

 

MAHOGANY QUAHOG TAX – 36 M.R.S.A. c. 714

 

A tax is imposed at the rate of $1.20 per bushel on all mahogany quahogs purchased from a harvester in Maine for wholesale distribution.  One purpose of this tax is to fund the Mahogany Quahog Monitoring Fund established in 12 M.R.S.A. §6731-A.  Beginning July 1, 2004, the Mahogany Quahog Monitoring Fund receives either 58% or $56,000 of this tax revenue, whichever is greater, and the remainder is credited to the General Fund.

 

Mahogany Quahog Tax

Fiscal Year

General Fund

Other Special Revenue Funds

Total All Funds

2003

$75,628

$16,000

$91,628

2004

$30,520

$56,000

$86,520

2005

$45,532

$56,000

$101,532

2006

$40,835

$56,391

$97,227

2007

$32,541

$60,688

$93,229

2008

$29,514

$56,000

$85,514

2009

($69)

$43,353

$43,284

2010

$0

$54,574

$54,574

2011

$4,341

$56,000

$60,341

2012

$26,817

$56,000

$82,817

 

Revenue Notes – Mahogany Quahog Tax

The Other Special Revenue Funds amounts are dedicated to the Mahogany Quahog Monitoring Fund.  The remainder is credited to the General Fund.  In fiscal year 2009, a refund, which should have been credited to Other Special Revenue Funds, was credited to the General Fund, leaving a negative revenue amount in the General Fund.

 

History – Mahogany Quahog Tax

Imposed July 16, 1986 at the rate of 8% of the landed value of mahogany quahogs.  Repealed and replaced June 29, 1987 changing the rate to $1.20 per bushel.  Amended PL 2003, c. 20 §WW-28 to increase from $16,000 to $56,000 the amount set aside for the Toxin Monitoring Fund effective July 1, 2003.  PL 2003, c. 593 changed the name of the Toxin Monitoring Fund to the Mahogany Quahog Monitoring Fund and changed its share of revenues to the greater of 58% or $56,000.

 

 

BLUEBERRY TAX – 36 M.R.S.A. c. 701

 

A tax is imposed at the rate of 1½¢ per pound of fresh fruit on all wild blueberries grown, purchased, sold, handled or processed in Maine.  Funds collected are transferred to the Wild Blueberry Commission of Maine for promotion, advertising, research and education.


 

Blueberry Tax

Fiscal Year

Other Special Revenue Funds

Total All Funds

2003

$1,031,403

$1,031,403

2004

$1,330,112

$1,330,112

2005

$893,062

$893,062

2006

$1,007,374

$1,007,374

2007

$1,233,229

$1,233,229

2008

$1,247,079

$1,247,079

2009

$1,475,106