If you ask a Mainer about taxes, you’re liable to get an earful: Mainers have one of the highest tax burdens in the nation. Nonetheless, on election day, Maine voters turned down proposals to cut taxes.
In a slow economy, Maine voters were leery of a proposal that would result in cuts in services. The controversial ballot issue, Question 4, asked voters if they wanted to limit future increases in state and local government spending and taxes to the rate of inflation plus population growth. The measure was known as the Taxpayer Bill of Rights campaign, or TABOR. Those opposed to the measure referred to it as “TABOR II” since a similar proposal was turned down in 2006.
Those in support of TABOR claimed that the bill would put more money back in taxpayer’s pockets. Critics wondered what the actual result of would be, as many state and local services were already facing cuts. Public schools are already operating under frozen budgets.
Voters also rejected a proposal to cut excise taxes on some vehicles and exempt hybrid and fuel-efficient vehicles from sales tax. Measures to encourage the purchase of cleaner cars are popular in states like Colorado but critics feared that tax cuts would have to be made up somewhere else. In that way, it wasn’t so much a tax cut as a shift in taxation.
While tax measures on the ballots were overshadowed by publicity over questions about making medical marijuana more available (yes) and gay marriage legal (no), the tax votes may be indicative of the mood of the nation on the eve of a huge election year… Only time will tell.
It was a historic day on yesterday with the election of President Elect Barack Obama. It’s almost easy to forget that there were other elections and ballot issues to consider but voters in some states faced a laundry list of issues. Among those were several state tax measures, including:
In Arkansas: Voters supported an amendment to the Arkansas Constitution which, among things, eliminated a reference to the poll tax.
In Colorado: Voters said no on several tax measures, including a state sales tax increase. Amendment 58, which would end a property tax credit for Colorado’s oil and gas industry and boost severance tax revenue by $321 million a year – seven companies, including Chevron and Conoco each contributed $1 million towards the opposition campaign. Severance taxes are imposed on minerals extracted from the state, or “severed,” to compensate for nonrenewable resources.
In Florida: Voters defeated Amendment 8, which would have authorized counties to ask voters if they want to increase the sales tax for up to five years to aid the local community college. Voters approved Amendment 4, which would give conserved property a lower tax assessment; the amendment also eliminates property taxes on lands placed in a perpetual conservation easement.
In Louisiana: Voters said no to a bill that would dedicate additional state severance taxes to parishes (like counties) of origin (See Colorado above).
In Maine: Voters approved a measure vetoing a new tax on beer, wine and soft drinks, which would help finance a state health care program.
In Massachusetts: Voters rejected another measure that would have cut, and then eliminated, the state’s personal income tax. A similar measure was rejected in 2002.
In North Dakota: Voters rejected an income tax cut. Measure 2 would have cut income taxes in half and corporate income taxes by 15%.
In Nevada: Voters shot down an attempt by the Nevada Legislature to amend or repeal the sales and use tax without voter approval.
In Oklahoma: Voters overwhelmingly approved an exemption from personal property tax for injured veterans and veterans’ surviving spouses. Voters also approved a measure that would require a person or business to file an application in order to receive a property tax exemption.
In Oregon: Voters said yes to an exemption that required 50% voter turnout to pass property tax increase measures. Voters turned down a measure that would have allowed federal taxes paid to be deducted from Oregon taxable income.
(Note: Findings were based on local newspaper and media reports. If you have additional information, please share!)
Sooo, I am researching tax burdens of various states as part of my upcoming series on state taxes. And to my surprise, Maine actually ranks really high in terms of overall tax burden (they’re second, according to the Bureau of Economic Analysis, Census Bureau and Tax Foundation).
Who’s first? Vermont, with an overall burden of 14.1%. Maine comes in second at 14.0%. New York is third with 13.8%.
The tax burden is comprised of what residents pay in state and local income taxes, property taxes, sales taxes, luxury taxes and fuel taxes. The rankings as determined by the Bureau also considers the portion of business taxes passed along to residents through higher prices, lower wages or lower profits.
Wonder where your state landed? Keep reading… I’ll post the relative rates of all of the states in my upcoming series.
So, I’m on vacation in lovely Maine. Each time we come here (and we’ve been coming for a bit), I constantly hear complaints about the overall tax burden of Mainers. And I have to say, I’m a bit perplexed.
The sales tax in Maine is 5%. The tax is a bit broad in that items like clothing and newspapers are taxed (they’re not in my home state of Pennsylvania) but still, 5%? I’m used to paying 7%.
Likewise, the tax on bars, restaurants and hotels (and other lodging like our cabin) is an amazingly low 7%. Yep, 7%. In most areas, liquor taxes and hotel taxes quickly hit 10% and climb close to 15%.
I’m not privy to real estate and income tax rates just now – but I am checking them out. I’ve got to find out what’s driving these Mainers crazy…
If you’re a reader and you’re from Maine, please chime in!
