Maine Legislature, Session 123, LD 0157
Committee: Taxation
Sponsors: VAUGHAN

Legislative Document 
No.IS7 
H.P.139 
House of Representatives, January 12,2007 
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. 
Printed on recycled paper 
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Mn..LICENT M. MacFARLAND 
Clerk 
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Constitutional amendment. Resohed: 
T\\o thirds of each branch of the 
Legislature concurring, that the following amendment to the Constitution of Maine be 
proposed: 
Constitution, Art. IX, §24 is enacted to read: 
Section 24. Income tax rate reduction. Taxes on personal income in this State may 
not exceed the following. 
1. Maximum rates. Maximum income ta.\. rates on individuals mav not excl:ed the 
following amounts. 
A. For income tax years beginning in 2008, the maximum rate of tax is 7.5%. 
B. For income tax years beginning in 2009, the maximum rate of tax is 6.5%. 
C. For income tax years beginning in 2010, the maximum rate of tax is 5.5%. 
D. For income tax years beginning in 2011, the maximum rate of tax is 4.5%. 
E. For income tax years beginning in 2012, the maximum rate of tax is 3.5%. 
2. 
Exemption amount. 
In addition to any other exemptions and deductions 
permitted by law, individuals filing married joint income tax returns are entitled to the 
following exemptions. Persons filing as single taxpayers are entitled to exemptions equal 
to 50% 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 2008, the exemption amount is $4,000. 
B. For income tax years beginning in 2009, the exemption amount is $8,000. 
C. For income tax years beginning in 2010, the exemption amount is $12,000. 
D. For income tax years beginning in 2011, the exemption amount is $16,000. 
E. For income tax years beginning in 2012, the exemption amount is $20,000. 
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 proposed in this resolution by voting upon the following 
question: 
"Do you favor amending the Constitution of Maine to reduce over 5 years the 
maximum individual income tax rate to 3.5% and to increase over 5 years the 
income tax exemption to a maximum of $20,000?" 
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 
re\ ie\\ 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 
(cpies 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.