An Act To Provide Funding To Restore Fully State-Municipal Revenue Sharing
Maine Legislature, Session 130, LD 0409
Committee: Taxation
Sponsors: RISEMAN
Amends: 30-A MRSA §5681

Legislative Document
No. 409
H.P. 293
House of Representatives, February 10, 2021
An Act To Provide Funding To Restore Fully State-Municipal 
Revenue Sharing
(EMERGENCY)
Received by the Clerk of the House on February 8, 2021.  Referred to the Committee on 
Taxation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative RISEMAN of Harrison.
Emergency preamble.  Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, state-municipal revenue sharing was decreased for fiscal years 2015-16, 
2016-17, 2017-18 and 2018-19 from 5% to 2%, was 3% for fiscal year 2019-20 and is 
3.75% for fiscal year 2020-21; and
Whereas, the decrease in funds shared with municipalities has had a drastic effect on 
municipalities and their ability to provide services to their residents; and
Whereas, although the percentage of revenue sharing is scheduled to return to 5% 
beginning July 1, 2021, it is necessary that these funds be increased as soon as possible to 
avoid further damage to municipalities; and
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore,
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  30-A MRSA §5681, sub-§5, as amended by PL 2019, c. 343, Pt. H, §1, is 
further amended to read:
5.  Transfers to funds.  No later than the 10th day of each month, the State Controller 
shall transfer to the Local Government Fund 5% of the receipts during the previous month 
from the taxes imposed under Title 36, Parts 3 and 8, and Title 36, section 2552, subsection 
1, paragraphs A to F and L, and credited to the General Fund without any reduction, except 
that for fiscal years 2015-16, 2016-17, 2017-18 and 2018-19 the amount transferred is 2%, 
for fiscal year 2019‑20 the amount transferred is 3% and for the first 6 months of fiscal 
year 2020‑21 the amount transferred is 3.75% of the receipts during the previous month 
from the taxes imposed under Title 36, Parts 3 and 8, and Title 36, section 2552, subsection 
1, paragraphs A to F and L, and credited to the General Fund without any reduction, and 
except that the postage, state cost allocation program and programming costs of 
administering state-municipal revenue sharing may be paid by the Local Government Fund.  
A percentage share of the amounts transferred to the Local Government Fund each month 
must be transferred to the Disproportionate Tax Burden Fund and distributed pursuant to 
subsection 4‑B as follows:
C.  For months beginning on or after July 1, 2009 but before July 1, 2010, 15%;
D.  For months beginning on or after July 1, 2010 but before July 1, 2011, 16%;
E.  For months beginning on or after July 1, 2011 but before July 1, 2012, 17%;
F.  For months beginning on or after July 1, 2012 but before July 1, 2013, 18%;
G.  For months beginning on or after July 1, 2013 but before July 1, 2014, 19%; and
H.  For months beginning on or after July 1, 2014, 20%.
Sec. 2.  Retroactivity.  This Act applies retroactively to January 1, 2021.
Emergency clause.  In view of the emergency cited in the preamble, this legislation 
takes effect when approved.
SUMMARY
This bill increases state-municipal revenue sharing to 5% from 3.75% in the final 6 
months of fiscal year 2020-21.  Current law restores state-municipal revenue sharing to 5% 
beginning in fiscal year 2021-22.