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Business and Economy

Maine Projected Revenues Up By $75 Million Through The Rest Of The Two Year Budget

The State Revenue Forecasting Committee is increasing projected tax revenues by $75 million through the rest of the two year budget.

Committee Chair Mike Allen of Maine Revenue Services says that part of that increase is tied to improved enforcement of existing sales tax laws.

“The U.S. Supreme Court, with the Wayfair decision in June of 2018, said states can require remote sellers to sell and remit sales tax,” Allen says. “That has resulted in additional revenue to the state.”

Allen says the state’s strong economy is also driving up income and sales tax collections. Most of that, about $53 million, will be generated in the current budget year.

“There is some one time money, roughly $18 to $20 million, mostly in corporate and estate tax revenue, that we think is one time to FY 20.”

How the extra money will be spent is up to Gov. Janet Mills and the legislature, which returns to work in January.