Legislative Update by Cathy Breen

 
We were fortunate enough to have Senator Cathy Breen speak to our group today. She highlighted the '16-'17 budget tax changes and answered several questions from the audience.
 
Some of the highlights:
  • Income tax cuts for all Mainers with a targeted cut to working and middle-income Mainers - top rate has been reduced from 7.95% to 7.15% and nearly doubles the standard deduction to $11.6 for singles and $23.2 for married couples.
  • Property tax relief – Doubles homestead property tax credit and retains municipal revenue sharing level.
  • Other tax reforms – military pensions 100% exempt and conforms to federal exemption for estate tax at $5.5M
  • The budget is fully paid for - lodging tax increased to 9%, meal tax remains at 8% and sales tax remains at 5.5%