An Act to Permanently
Maine Legislature, Session 132, LD 1089
Committee Amendment CA_A_H648 (House)
Amends: 20-A MRSA §15699, 30-A MRSA §5681, 36 MRSA §5111, 36 MRSA §5160, 36 MRSA §5403

COMMITTEE AMENDMENT "A" to H.P. 711, L.D. 1089, "An Act to Permanently 
Fund 55 Percent of the State's Share of Education by Establishing a Tax on Incomes of 
More than $1,000,000" 
Amend the bill by striking out the title and substituting the following: 
'An Act to Permanently Fund 55 Percent of the State's Share of Education by 
Establishing a Tax on High-income Earners' 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'Sec. 1. 20-A MRSA §15699 is enacted to read: 
§15699. Fund for Public Prekindergarten to Grade 12 Education 
1. Fund established. The Fund for Public Prekindergarten to Grade 12 Education, 
referred to in this section as "the fund,
is established as an interest-bearing account 
administered by the depa1tment. 
2. Revenue. The Treasurer of State shall deposit all revenue collected pursuant to Title 
6, section 511 1, subsection 7 from the income tax surcharge to fund education into the 
fund according to the schedule in Title 3 6, section 5111, subsection 7. All interest earned 
by the fund becomes part of the fund. 
3. Use of fund. The commissioner shall use the fund to ensure the State meets or 
exceeds the annual target established by section 15752, inclusive of prekindergarten 
funding. 
Sec. 2. 30-A MRSA §5681, sub-§5, as amended by PL 2023, c. 412, Pt. XXX, §1 
and affected by §15, is fu1ther amended to read: 
5. Transfers to funds. Before January 1, 2025, 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, Patts 3 and 8, and Title 
36, section 2552, former subsection 1, paragraphs A to F and L, and credited to the General 
Page I - l32LR1823(02) 
COMMITTEE AMENDMENT 
ROS 
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COMMITTEEAMENDMENT'A "to H.P. 711, L.D. 1089 
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 transfen-ed is 
%, for fiscal year 2020-21 the amount transfe11·ed is 3. 7 5% and for fiscal year 2021-22 the 
amount transfen-ed is 4.5% of the receipts during the previous month from the taxes 
imposed under Title 36, Paits 3 and 8, and Title 36, section 2552, former 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. 
Beginning January 1, 2025 and ending January 31, 2026, 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-A, and credited to the General Fund without any reduction, 
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. 
Twenty percent of the amounts transfetTed to the Local Government Fund each month must 
be transfen-ed to the Dispropo1tionate Tax Burden Fund and distributed pursuant to 
subsection 4-B. 
Beginning F ebruaty 1, 2026, 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-A, and credited to the General Fund without any reduction, except for the reduction for 
the transfer to the Fund for Public Kindergarten to Grade 12 Education as described by 
Title 36, section 5111, subsection 7, paragraph B 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. Twenty percent of the amounts 
transferred to the Local Government Fund each month must be transfen-ed to the 
Disproportionate Tax Burden Fund and distributed pursuant to subsection 4-B. 
Sec. 3. 36 MRSA §5111, sub-§7 is enacted to read: 
7. Income tax surcharge to fund education. An income tax surcharge is established 
and administered as follows. 
A. For tax years beginning on or after Janua1y 1, 2026, in addition to any other tax 
imposed by this chapter, a surcharge at the rate of 2% is imposed on that portion of the 
taxpayer's Maine taxable income in excess of: 
(1) For single individuals and married persons filing separate returns, $1,000,000; 
(2) For heads of households, $1,500,000; and 
(3) For individuals filing manied joint returns or surviving spouses, $2,000,000. 
B. All revenue collected under this subsection must be used to fund public 
prekindergarten to grade 12 education and must be deposited each year into the Fund 
for Public Prekindergarten to Grade 12 Education established in Title 20-A, section 
15699 in accordance with this paragraph. 
(1) Prior to January 1st of each year, the bureau shall estimate the annual revenue 
to be collected from the surcharge for the immediately following calendar year. 
COMMITTEE AMENDMENT 
ROS 
• 
1,-
.,, 
COMMITTEE AMENDMENT" A" to H.P. 711, L.D. 1089 
(2) On the first of each month, beginning on January 1, 2026, the Treasurer of State 
shall deposit 8.333% of the estimated annual total revenue from the surcharge into 
the Fund for Public Prekindergarten to Grade 12 Education. 
(3) The bureau may adjust the monthly transfer amount once annually to account 
for any difference between the estimated collection and actual collection of 
revenue for the year in which the transfer is made and any tax years prior to that 
year. 
Sec, 4. 36 MRSA §5160, as amended by PL 2003, c. 390, §35, is further amended 
to read: 
§5160. Imposition of tax 
The tax is imposed, at the rates provided by section 5111, including the surcharge 
imposed pursuant to section 5111, subsection 7, for single individuals, upon the Maine 
taxable income of estates and trusts. The tax must be paid by the fiduciary. 
Sec. 5. 36 MRSA §5403, sub-§8, as amended by PL 2023, c. 412, Pt. ZZZ, §9, is 
further amended to read: 
8. Personal exemption phase-out. Beginning in 2018 and each year thereafter, by 
the dollar amount of the applicable amounts specified in section 5126-A, subsection 2, 
paragraphs A, B and C, except that for the purposes of this subsection, 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, 
2017;and 
Sec. 6. 36 MRSA §5403, sub-§9, as enacted by PL 2023, c. 412, Pt. ZZZ, §10, is 
amended to read: 
9. Dependent exemption tax credit amount. Beginning in 2024 and each year 
thereafter, by the dollar amount of the dependent exemption tax credit under section 
5219-SS, except that for the purposes of this subsection, 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 cal~ndar year divided by the 
Chained Consumer Price Index for the 12-month period ending June 30, 2023. If the credit 
amount, adjusted by application of the cost-of-living adjustment, is not a multiple of $5, 
any increase must be rounded to the next lowest multiple of $5"; and 
Sec. 7. 36 MRSA §5403, sub-§10 is enacted to read: 
10. Income tax surcharge. Beginning in 2026 and each year thereafter, by the dollar 
amounts specified in section 5111, subsection 7, paragraph A, subparagraphs (1 ). (2) and 
(3), except that for the purposes of this subsection, 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. 2025. 
Sec. 8. Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
COMMITTEE AMENDMENT 
K.0S 
, 
. .---
COMMITTEEAMENDMENT"A"toH.P. 711,L.D.1089 
Revenue Services, Bureau of 0002 
Initiative: Provides one-time funding for computer programming costs. 
GENERAL FUND 
2025-26 
2026-27 
All Other 
$0 
$155,480 
GENERAL FUND TOTAL 
$0 
$155,480 
ADMINISTRATIVE AND FINANCIAL 
SERVICES, DEPARTMENT OF 
DEPARTMENT TOTALS 
2025-26 
2026-27 
GENERAL FUND 
$0 
$155,480 
DEPARTMENT TOTAL-ALL FUNDS 
$0 
$155,480 
EDUCATION, DEPARTMENT OF 
Fund for Public Prekindergarten to Grade 12 Education N550 
Initiative: Allocates funds from revenues received from an income tax surcharge pursuant 
to the Maine Revised Statutes, Title 36, section 5111, subsection 7 provided to ensure the 
State meets its obligation to meet or exceed the annual target established in Title 20-A, 
section 15752, inclusive of prekindergarten funding. 
OTHER SPECIAL REVENUE FUNDS 
2025-26 
2026-27 
All Other 
$20,468,500 
$64,348,250 
OTHER SPECIAL REVENUE FUNDS TOTAL 
$20,468,500 
$64,348,250 
EDUCATION, DEPARTMENT OF 
DEPARTMENT TOTALS 
2025-26 
2026-27 
OTHER SPECIAL REVENUE FUNDS 
$20,468,500 
$64,348,250 
DEPARTMENT TOTAL-ALL FUNDS 
$20,468,500 
$64,348,250 
SECTION TOTALS 
2025-26 
2026-27 
GENERAL FUND 
$0 
$155,480 
OTHER SPECIAL REVENUE FUNDS 
$20,468,500 
$64,348,250 
SECTION TOTAL - ALL FUNDS 
$20,468,500 
$64,503,730 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section 
number to read consecutively. 
COMMITTEE AMENDMENT 
ROS ~, 
COMMITTEE AMENDMENT "A" to H.P. 711, L,D, 1089 
SUMMARY 
This amendment replaces the bill and changes the title. The amendment imposes an 
income tax surcharge of 2% on that portion of a taxpayer's Maine taxable income in excess 
of $1,000,000 for single filers and married persons filing separate retums, $1,500,000 for 
heads of households and $2,000,000 for married persons filing jointly or surviving spouses 
to fund public prekindergarten to grade 12 education and exempts the revenue from the 
surcharge from the calculation of state-municipal revenue sharing. 
The amendment 
establishes the Fund for Public Prekindergarten to Grade 12 Education and requires the 
Treasurer of State, beginning January 1, 2026, to deposit monthly into the fund 8.333% of 
the estimated annual total revenue from the surcharge. Revenue transferred into the fund 
must be used to ensure the State meets or exceeds the target for education funding, which 
is currently 55%. The amendment also adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Revised: 06/10/25 LRL 
LD 1089 
LR 1823(02) 
An Act to Permanently Fund 55 Percent of the State's Share of Education by Establishing a Tax on 
Incomes of More than $1,000,000 
Fiscal Note for Bill as Amen_ded by Con:imittee Amendment "fl.' 'H-1 1 ~0\ 
Committee: Taxat10n 
· 
/\ lt" 
'07 6) 
Net Cost (Savings) 
General Fund 
Appropriations/ Allocations 
General Fund 
Other Special Revenue Funds 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2025-26 
$1,499,575 
$0 
$20,468,500 
($1,499,575) 
$20,389,575 
FY 2026-27 
$258,317 
$155,480 
$64,348,250 
($102,837) 
$64,342,837 
Projections 
FY 2027-28 
$125,637 
$0 
$68,922,250 
($125,637) 
$68,915,637 
Projections 
FY 2028-29 
$133,950 
$74,301,000 
($133,950) 
$74,29~,950 
This bill would result in a revenue decrease to the General Fund of $1,499,575 in fiscal year 2025-26 and $102,837 in 
fiscal year 2026-27 by imposing an income tax surcharge of 2% on the portion of a taxpayer's Maine taxable income 
in excess of $1,000,000 if filing single; $1,500,000 if head of household; and $2,000,000 ifmaffied filingjointly_,or 
qualifying surviving spouse for tax years beginning on or after January 1, 2026, All revenue collected from the income 
tax surcharge shall be deposited into the Fund for Public Pre-Kindergarten to Grade 12 Education. The bill would also 
result in a revenue decrease to the Local Government Fund of $78,925 in fiscal year 2025-26 and $5,413 in fiscal year 
2026-27 as well as a revenue increase to the Fund for Public Pre-Kindergarten to Grade 12 Education of $20,468,500 
in fiscal year 2025-26 and $64,348,250 in fiscal year 2026-27. 
Additionally, the bill includes a one-time General Fund appropriation to the Bureau of Revenue Services within the 
Department of Administrative and Financial Services of$155,480 in fiscal year 2026-27 to fund computer 
programming costs associated with the provisions of this bill. 
Finally, this bill includes ongoing Other Special Revenue Funds allocation of $20,468,500 in fiscal year 2025-26 and 
$64,348,250 in fiscal year 2026-27 to a newly established Fund for Public Pre-kindergarten to Grade 12 Education 
program within the Department of Education to authorize the expenditure ofrevenues received from the income tax 
surcharge to ensure Maine meets its obligation to meet, or exceed, the annual target of funding the total cost of public 
education from pre-kindergarten to grade 12: 
LR1823(02) - Fiscal Note - Page 1 of 1