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Home > Revenue Sharing > Monthly Distributions > Calculate Revenue Sharing

Calculate Revenue Sharing

Source of Funds: 5.1% of the State Government's monthly sales, corporate and personal income tax revenues are set aside to fund the municipal revenue sharing pool. 2% of the pool is set aside each month to the Fund for the Efficient Delivery of Local and Regional Services.

Source Information: Three statistics for each municipality are needed to calculate the distribution percentage:

  1. State Valuation (provided by the State Tax Assessor);
  2. Tax Assessment (provided by the Property Tax Division of Maine Revenue Services) and
  3. Estimated or Actual Population (provided by the DHHS Office of Vital Records).

Revenue Sharing I - Timing and Calculation: Municipal Revenue Sharing is distributed by the 20th of each month to each municipality based on the Revenue Sharing I (REV-I) formula, (see 30-A M.R.S.A. s. 5681). The REV-I calculations work as follows:

  1. (population x assessment)/state valuation = computed number
  2. computed number/sum of all computed numbers = proportional share of REV-I distributions

Rev-I Cap: The pool of funds available for distribution under REV-I is subject to an annual growth ceiling, also known as the REV-I Cap. The REV-I Cap is determined by the State Tax Assessor on or before September 1st each year and reflects the lower of annual changes in the Consumer Price Index (CPI) or the increase in receipts from the taxes imposed under Title 36, Parts 3 (Sales Tax) and 8, (Income Tax). Each new Cap must not be less than the Cap for the previous year. Once the Cap is reached (based on the tax receipts distributed the following month) all subsequent distributions for that fiscal year will be distributed using the REV-II formula.

REV-II Distributions: Municipal Revenue Sharing pooled funds in excess of the REV-I Cap are distributed under the REV-II formula. The REV-II calculation works as follows:

  1. assessment/state valuation = mil. rate
  2. (mil. rate - 0.01) x population = computed number
  3. computed number/sum of all computed numbers = proportional share of REV-II distributions

**For purposes of the program, the unorganized territory, plantations, the Passamaquoddy Tribe, and the Penobscot Nation are treated as if they were municipalities.