Maine Legislature, Session 122, LD 1032
Committee: Taxation
Sponsors: VAUGHAN, CROSTHWAITE, JOY, MILLETT, NASS, ROSEN

Legislative Document 
No. 1032 
H.P.7l7 
House of Representatives, March 1,2005 
RESOLUTION, Proposing an Amendment to the Constitution of 
Maine To Lower the Income Tax 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative VAUGHAN of Durham. 
11/~ 
/J7.1J?et£~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representatives: CROSTHWAITE of Ellsworth, JOY of Crystal, MILLETT 
of Waterford, Senators: NASS of York, ROSEN of Hancock. 
Primed on reqded paper 
Constitutional amendment. 
Resolved: 
Two 
thirds 
branch 
of 
the 
Legislature 
concurring, 
that 
the 
amendment to the Constitution of Maine be proposed: 
Constitution, Art. IX, §24 is enacted to read: 
of 
each 
following 
Section 24. 
Income tax rate reduction. 
Taxes on personal 
income in this State may not exceed the following. 
1. 
Maximum rates. 
Maximum income tax rates on individuals 
may not exceed the _fQllowing amounts. 
A. 
For incom~tax years beginning in 2006, the maximum rate 
of tax is 7.5°0. 
B. 
For income tax years beginning in 2007, the maximum rate 
of tax is 6.5°0. 
C. 
For income tax years beginning in 2008, the maximum rate 
of tax is 5. SOb. 
D. 
FQr 
in~ome tQx 
:tJ';~Qrs beginning in 2QQS/, the mQximym rate 
of tax is 4.5°b,--
E. 
For in~om~ tQx years Qeginning in 2QIQ, the maximym rate 
Qf tax i Q 3. 5°~. 
2. 
Exemption amounts. 
In addition to any Qther exemptions 
and dedyctions permitted by law, individYals filing married joint 
income 
tQx 
retyrns are entitled tQ 
the following exemptions. 
PersQnQ filing as single taxpayers are entitled to exemptions 
equal to 50""0 of the following amounts. 
Persons filing as heads 
of household are entitled to exemptions equal to 
75% 
of the 
following amounts. 
A. 
For income tax years beginning in 2QQQ, 
th~ ~x~mI;>tion 
amount i Q $4,000. 
B. 
For income tax years beginning in 2007, the exemI;>tion 
amQunt i Q $8,000. 
C. 
ror income tax years beginning in 2008, the eXSlmI;>tion 
amount is $12,000. 
D. 
For income tax years beginning in 2002, the exemption 
amount is $16,000. 
E. 
For income tax years beginning in 2010, the exemption 
amount is :&20,000. 
Page l-LR0022(1) 
3. 
Implementation. 
The Legislature shall enact legislation 
to implement this section. 
and be it further 
Constitutional referendum procedure; form of question; effective 
date. Resolved: 
That the municipal officers of this State shall 
notify the inhabitants of their respective cities, 
towns 
and 
plantations to meet, in the manner prescribed by law for holding 
a statewide election, at a statewide election, on the Tuesday 
following the first Monday of November following the passage of 
this resolution, to vote upon the ratification of the amendment 
1'1 
proposed in this resolution by voting upon the following question: 
"Do you favor amending the Constitution of Maine to reduce 
the maximum individual income tax rate to 3.5% over 5 years 
and provide an income tax exemption of up to $20,000 over 5 
years?" 
The legal voters of each city, town and plantation shall 
vote by ballot on this question and designate their choice by a 
cross or check mark placed within the corresponding square below 
the word "Yes" or "No." 
The ballots must be received, sorted, 
counted and declared in open ward, town and plantation meetings 
and returns made to the Secretary of State in the same manner as 
votes for members of the Legislature. 
The Governor shall review 
the returns and, if it appears that a majority of the legal votes 
are cast in favor of the amendment, the Governor shall proclaim 
that fact without delay and the amendment becomes part of the 
Constitution of Maine on the date of the proclamation; and be it 
further 
Secretary of State shall prepare ballots. Resolved: 
That 
the 
Secretary of State shall prepare and furnish to each city, town 
and plantation all ballots, returns and copies of this resolution 
necessary to carry out the purposes of this referendum. 
SUMMARY 
This constitutional resolution establishes a timetable for 
phasing in a reduction in the maximum individual income tax rate 
to 3.5°" over 5 years. 
It also phases in an income tax exemption 
of up to $20,000 over that same time period.