An Act To Lower Maine's Individual Income Tax
Maine Legislature, Session 129, LD 1292
Committee: Taxation
Sponsors: O'CONNOR, DOW, AUSTIN, DOLLOFF, JOHANSEN, LOCKMAN, MARTIN, ORDWAY, PICKETT, WHITE
Amends: 5 MRSA §1518-A, 36 MRSA §5111, 36 MRSA §5403

Legislative Document
No. 1292
H.P. 935
House of Representatives, March 19, 2019
An Act To Lower Maine's Individual Income Tax
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative O'CONNOR of Berwick.
Cosponsored by Senator DOW of Lincoln and
Representatives: AUSTIN of Gray, DOLLOFF of Rumford, JOHANSEN of Monticello, 
LOCKMAN of Bradley, MARTIN of Greene, ORDWAY of Standish, PICKETT of Dixfield, 
WHITE of Washburn.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA §1518-A, sub-§1-A, ¶A, as amended by PL 2015, c. 390, §1, is 
further amended to read:
A.  By November 1st annually, the State Tax Assessor shall calculate the amount by 
which the income tax rates under Title 36, section 5111, subsections 1-F, 2-F and 3-F 
may be reduced during the subsequent tax year using the amount available from the 
fund. Bracket rate reductions must be a minimum of 0.2 percentage points in the first 
year in which reductions are made and a minimum of 0.1 percentage points in 
subsequent years. If sufficient funds are not available to pay for the minimum 
reduction, a rate reduction may not be made until the amount in the fund is sufficient 
to pay for the reduction. When the amount is sufficient to pay for the reduction, the 
reduction must first be applied equally to each bracket under Title 36, section 5111, 
subsections 1-F, 2-F and 3-F until the lower bracket reaches 4%. Funds available 
from the fund in subsequent years must be applied to reduce the higher bracket rates 
until there is a single bracket with a rate of 4%, after which future tax relief may be 
identified.
Sec. 2.  36 MRSA §5111, sub-§1-F, as enacted by PL 2015, c. 267, Pt. DD, §3, is 
amended to read:
1-F.  Single individuals and married persons filing separate returns; tax years 
beginning 2017, 2018 or 2019.  For tax years beginning on or after January 1, 2017 in 
2017, 2018 or 2019, for single individuals and married persons filing separate returns:
Sec. 3.  36 MRSA §5111, sub-§1-G is enacted to read:
1-G.  Single individuals and married persons filing separate returns; tax years 
beginning 2020 or 2021.  For tax years beginning in 2020 or 2021, for single individuals 
and married persons filing separate returns:
Sec. 4.  36 MRSA §5111, sub-§1-H is enacted to read:
If Maine taxable income is:
The tax is:
Less than $21,050
5.8% of the Maine taxable income
At least $21,050 but less than $50,000
$1,221 plus 6.75% of the excess over 
$21,050
$50,000 or more
$3,175 plus 7.15% of the excess over 
$50,000
If Maine taxable income is:
The tax is:
Less than $21,050
5.2% of the Maine taxable income
At least $21,050 but less than $50,000
$1,095 plus 6.3% of the excess over 
$21,050
$50,000 or more
$2,918 plus 7.05% of the excess over 
$50,000
1-H.  Single individuals and married persons filing separate returns; tax years 
beginning 2022.  For tax years beginning on or after January 1, 2022, for single 
individuals and married persons filing separate returns:
Sec. 5.  36 MRSA §5111, sub-§2-F, as enacted by PL 2015, c. 267, Pt. DD, §5, is 
amended to read:
2-F.  Heads of households; tax years beginning 2017, 2018 or 2019.  For tax years 
beginning on or after January 1, 2017 in 2017, 2018 or 2019, for unmarried individuals or 
legally separated individuals who qualify as heads of households:
Sec. 6.  36 MRSA §5111, sub-§2-G is enacted to read:
2-G.  Heads of households; tax years beginning 2020 or 2021.  For tax years 
beginning in 2020 or 2021, for unmarried individuals or legally separated individuals 
who qualify as heads of households:
Sec. 7.  36 MRSA §5111, sub-§2-H is enacted to read:
2-H.   Heads of households; tax years beginning 2022.  For tax years beginning on 
or after January 1, 2022, for unmarried individuals or legally separated individuals who 
qualify as heads of households:
Sec. 8.  36 MRSA §5111, sub-§3-F, as enacted by PL 2015, c. 267, Pt. DD, §7, is 
amended to read:
If Maine taxable income is:
The tax is:
Less than $21,050
5% of the Maine taxable income
At least $21,050 but less than $50,000
$1,053 plus 6% of the excess over $21,050
$50,000 or more
$2,790 plus 7% of the excess over $50,000
If Maine taxable income is:
The tax is:
Less than $31,550
5.8% of the Maine taxable income
At least $31,550 but less than $75,000
$1,830 plus 6.75% of the excess over 
$31,550
$75,000 or more
$4,763 plus 7.15% of the excess over 
$75,000
If Maine taxable income is:
The tax is:
Less than $31,550
5.2% of the Maine taxable income
At least $31,550 but less than $75,000
$1,641 plus 6.3% of the excess over 
$31,550
$75,000 or more
$4,378 plus 7.05% of the excess over 
$75,000
If Maine taxable income is:
The tax is:
Less than $31,550
5% of the Maine taxable income
At least $31,550 but less than $75,000
$1,578 plus 6% of the excess over $31,550
$75,000 or more
$4,185 plus 7% of the excess over $75,000
3-F.  Individuals filing married joint returns or surviving spouses; tax years 
beginning 2017, 2018 or 2019.  For tax years beginning on or after January 1, 2017 in 
2017, 2018 or 2019, for individuals filing married joint returns or surviving spouses 
permitted to file a joint return:
Sec. 9.  36 MRSA §5111, sub-§3-G is enacted to read:
3-G.  Individuals filing married joint returns or surviving spouses; tax years 
beginning 2020 or 2021.  For tax years beginning in 2020 or 2021, for individuals filing 
married joint returns or surviving spouses permitted to file a joint return:
Sec. 10.  36 MRSA §5111, sub-§3-H is enacted to read:
3-H.  Individuals filing married joint returns or surviving spouses; tax years 
beginning 2022.  For tax years beginning on or after January 1, 2022, for individuals 
filing married joint returns or surviving spouses permitted to file a joint return:
Sec. 11.  36 MRSA §5403, sub-§1, ¶B, as enacted by PL 2015, c. 267, Pt. DD, 
§33, is amended to read:
B.  Beginning in 2017 and each year thereafter, by the highest taxable income dollar 
amount of each tax rate table specified in section 5111, except that for the purposes 
of this paragraph, notwithstanding section 5402, subsection 1-B, the "cost-of-living 
adjustment" is the Chained Consumer Price Index for the 12-month period ending 
June 30th of the preceding calendar year divided by the Chained Consumer Price 
Index for the 12-month period ending June 30, 2016;
If Maine taxable income is:
The tax is:
Less than $42,100
5.8% of the Maine taxable income
At least $42,100 but less than $100,000
$2,442 plus 6.75% of the excess over 
$42,100
$100,000 or more
$6,350 plus 7.15% of the excess over 
$100,000
If Maine taxable income is:
The tax is:
Less than $42,100
5.2% of the Maine taxable income
At least $42,100 but less than $100,000
$2,189 plus 6.3% of the excess over 
$42,100
$100,000 or more
$5,837 plus 7.05% of the excess over 
$100,000
If Maine taxable income is:
The tax is:
Less than $42,100
5% of the Maine taxable income
At least $42,100 but less than $100,000
$2,105 plus 6% of the excess over $42,100
$100,000 or more
$5,579 plus 7% of the excess over 
$100,000
SUMMARY
This bill decreases over 3 years the rate of taxation imposed on individual income by:
1.  Decreasing the lowest rate from 5.8% to 5.2% for tax years 2020 and 2021 and to 
5% beginning in 2022;
2.  Decreasing the middle rate from 6.75% to 6.3% for tax years 2020 and 2021 and 
to 6% beginning in 2022; and
3.  Decreasing the highest rate from 7.15% to 7.05% for tax years 2020 and 2021 and 
to 7% beginning in 2022.
This bill also changes cross-references in the Tax Relief Fund for Maine Residents 
and inflation adjustment statutes.