Calculate Revenue Sharing
Source of Funds: 5.0% of the State Government's monthly sales, corporate and personal income tax revenues are set aside to fund the municipal revenue sharing pool. During the state fiscal years of 2020 and 2021, the amount of revenue sharing will be reduced to 3.0% (2020) and 3.75% (2021) of the State Government's monthly sales, corporate and personal income tax revenues. (Title 30A, Section 5681, subsection 5)
Source Information: Three statistics for each municipality are needed to calculate the distribution percentage:
- State Valuation (provided by the State Tax Assessor);
- Tax Assessment (provided by the Property Tax Division of Maine Revenue Services) and
- 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:
- (population x assessment)/state valuation = computed number
- computed number/sum of all computed numbers = proportional share of REV-I distributions
REV-II Distributions: In fiscal year 2016, 2017, 2018, 2019, approximately 20% of funds are set aside in the Local Government Fund and a lump sum distribution of $4 million at the end of each year. Distributions are to be made by the 20th of each month to each municipality under the REV-II formula. The REV-II calculation works as follows:
- assessment/state valuation = mil. rate
- (mil. rate - 0.01) x population = computed number
- 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.