An Act To Provide Funding for Education by Restoring the 8.5 Percent Income Tax Rate for High-income Taxpayers
Maine Legislature, Session 126, LD 0692
Committee: Taxation
Sponsors: MacDONALD, DAUGHTRY, RUSSELL
Amends: 20-A MRSA §15752-A, 36 MRSA §5111

Legislative Document 
No. 692 
H.P. 484 
House of Representatives, February 26, 2013 
An Act To Provide Funding for Education by Restoring the 8.5 
Percent Income Tax Rate for High-income Taxpayers 
Reference to the Committee on Taxation suggested and ordered printed. 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative MacDONALD of Boothbay. 
Cosponsored by Representatives: DAUGHTRY of Brunswick, RUSSELL of Portland. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  20-A MRSA §15752-A is enacted to read: 
§15752-A.  State funding for mandated legislative appropriations for kindergarten 
to grade 12 education 
By June 30, 2014 and annually thereafter, the State Tax Assessor shall calculate the 
amount of revenue attributable to the income taxes paid by taxpayers who are taxed at the 
8.5% rate under Title 36, section 5111, subsections 1-C, 2-C and 3-C and shall certify to 
the State Controller the amount of revenue attributable to the income tax paid by those 
taxpayers. The State Controller shall credit the amount of revenue attributable to the 
income tax paid by taxpayers who are taxed at the 8.5% rate under Title 36, section 5111, 
subsections 1-C, 2-C and 3-C to the department.  That amount must be used to 
supplement and not to supplant funding for essential programs and services for 
kindergarten to grade 12 education under chapter 606-B. 
Sec. 2.  36 MRSA §5111, sub-§1-C, as enacted by PL 2011, c. 380, Pt. N, §2 and 
affected by §19, is amended to read: 
1-C.  Single individuals and married persons filing separate returns; tax years 
beginning 2013.  For tax years beginning on or after January 1, 2013, for single 
individuals and married persons filing separate returns: 
Sec. 3.  36 MRSA §5111, sub-§2-C, as enacted by PL 2011, c. 380, Pt. N, §4 and 
affected by §19, is amended to read: 
2-C.  Heads of households; tax years beginning 2013.  For tax years beginning on 
or after January 1, 2013, for unmarried individuals or legally separated individuals who 
qualify as heads of households: 
Sec. 4.  36 MRSA §5111, sub-§3-C, as enacted by PL 2011, c. 380, Pt. N, §6 and 
affected by §19, is amended to read: 
If Maine Taxable income is: 
The tax is: 
At least $5,000 but less than $19,950 
6.5% of the excess over $5,000 
$19,950 or more  but less than $137,500 
$972 plus 7.95% of the excess over 
$19,950 
$137,500 or more 
$10,317 plus 8.5% of the excess over 
$137,500 
If Maine Taxable income is: 
The tax is: 
At least $7,500 but less than $29,900 
6.5% of the excess over $7,500 
$29,900 or more   but less than $206,250 
$1,456 plus 7.95% of the excess over 
$29,900 
$206,250 or more 
$15,548 plus 8.5% of the excess over 
$206,250 
3-C.  Individuals filing married joint return or surviving spouses; tax years 
beginning 2013.  For tax years beginning on or after January 1, 2013, for individuals 
filing married joint returns or surviving spouses permitted to file a joint return: 
SUMMARY 
This bill reinstates the 8.5% tax rate for high-income taxpayers and uses the funds to 
assist the State in providing at least 55% of the cost of the total allocation for 
kindergarten to grade 12 education from General Fund revenue sources.  The higher tax 
rates apply to individuals filing married joint returns or surviving spouses who have 
Maine taxable income of $275,000 or more, heads of households who have Maine taxable 
income of $206,250 or more and single individuals and married persons filing separate 
returns who have Maine taxable income of $137,500 or more. 
If Maine Taxable income is: 
The tax is: 
At least $10,000 but less than $39,900 
6.5% of the excess over $10,000 
$39,900 or more  but less than $275,000 
$1,944 plus 7.95% of the excess over 
$39,900 
$275,000 or more 
$20,634 plus 8.5% of the excess over 
$275,000