The people’s veto group calling for a repeal of the tax reform bill that passed last June will see results after a vote next June, as the Secretary of State has confirmed the necessary signatures.
According to Maine Sen. David Trahan (R-Waldoboro) who is the spokesperson for the group Still Fed Up With Taxes, they turned in a little over 56,000 signatures to Secretary of State Matthew Dunlap, which have been confirmed.
Trahan said he does not expect the validity of the signatures to be challenged.
The senator said roughly 400 people helped out in what he called a grassroots effort. There are six main leaders in the organization, Trahan said, including members of the Green Party and one Democrat.
He said there are four or five people connected to the automotive industry in the group, as well as members of the tourism industry who find fault with the tax reform bill LD 1495, sponsored by Maine State Representative and House Majority Leader John Piotti (D-Unity).
Trahan claims there are a number of problems with the bill, most notably the burden he says it will place on the poor and elderly.
“The bill is very complex and not too many people understand it,” he said.
According to the senator, everyone, except 5000 of the wealthiest people in the state, will see an increase in their tax bill by the year 2013. The expansion of sales tax to automotive costs and appliance repair is going to negatively impact those who are on a fixed income, he said, adding that he pulled his information from the Maine Revenue Service.
“I believe the supporters deceived the public,” he said, adding that people who seek to get their money back will have to file an income tax form, an action he said many elderly won’t do because of the cost to file. “I support cutting income tax, but don’t support the way they did it in this bill.”
Rep. Piotti was called at his residence minutes before press time, but he was unavailable for comment.
The bill was originally written as LD 1088, which, according to the nonprofit research organization Tax Foundation, included a single flat rate individual income tax of 6.5 percent and an expansion of the sales tax.
Rewritten as LD 1495, the bill passed the House and Senate in June and was signed into law. The summary of LD 1495 states that its substance was derived from LD 1088 and has with it several amendments.
The summary of the bill (exact text from bill taken from maine.gov website) with the changes reads as follows:
It enacts an income tax surcharge equal to 0.35 percent on taxable income over $250,000, bringing the tax rate to 6.85 percent on Maine income over $250,000. The tax surcharge applies to tax years beginning on or after Jan 1, 2010.
The bill states:
“It eliminates the Maine minimum tax credit for individuals that may be claimed on returns due for tax years beginning on or after Jan 1, 2010. The credit still applies with respect to taxable corporations.
“It makes the earned income tax credit refundable for tax years beginning after 2009 up to $150 for taxpayers filing married joint returns and $125 for all other taxpayers. Under current law, the credit is not refundable.
“It eliminates the proposed real estate transfer tax increase.
“It eliminates the proposed sales tax exemption for businesses that make snow for skiing, snowmobiling or similar activities of electricity or fuel used to make snow, machinery or equipment that is used for making snow and snow-grooming equipment.
“It eliminates the proposed sales tax on fees charged for golf courses, bowling alleys, swimming pools, skating rinks, ski lifts, gymnasiums and tennis and racquetball courts and on proceeds from arcade games.
“It specifies that the exemption from sales tax applies to fees charged by health and fitness centers and lessons or training in dance, music, theatre, arts and gymnastics, martial arts and other athletic pursuits.
“It increases the amount that is deposited into the Tourism Marketing Promotion Fund from sales tax on meals and lodging.
“It allocates funds to the Tourism Marketing Promotion Fund due to the increase in the percentage of certain sales tax revenue that is transferred to the fund.”
