MaineAmendment would direct high-income tax revenue to public schools
If adopted, the amendment would charge some high-income taxpayers a 2% surcharge and direct the revenue to Maine’s public education funding target.
What it does
Taxpayers would pay a 2% surcharge on income above a threshold that depends on filing status. Estates and trusts would pay through their fiduciary.
Surcharge revenue would go into a dedicated education fund to help the state meet its annual funding target for public prekindergarten through grade 12.
When calculating the state’s monthly transfer to the Local Government Fund, the state would subtract the transfer to the education fund from certain tax receipts.
Argument forPublic schools could receive dedicated funding because surcharge revenue would go to education and count toward the state’s annual funding target.
Argument againstSome high-income taxpayers could owe more because the surcharge would add 2% to income above the threshold for their filing status.
More detail
The proposed amendment would charge a 2% income tax surcharge. It would cover single filers, married people filing separately or jointly, heads of households, and surviving spouses. The surcharge would apply only to income above the threshold for the taxpayer’s filing status. An estate or trust would pay through its fiduciary, the person responsible for handling its taxes. It would apply to tax years starting on or after January 1, 2026. The thresholds would be adjusted each year for inflation.
The proposed amendment would direct surcharge revenue into a dedicated education fund. The education department would administer the fund for public prekindergarten-through-grade-12 education. The fund would support the state’s annual funding target for public prekindergarten through grade 12, including prekindergarten. Monthly deposits would be based on estimated yearly surcharge revenue. The bureau could adjust the amount once a year to account for differences between estimates and collections. Monthly deposits would begin January 1, 2026. The bureau could adjust the amount once each year.
The proposed amendment would subtract the education fund transfer from certain tax receipts used to calculate state payments to municipalities. This would apply to monthly transfers to the Local Government Fund. The state would still transfer 5% of specified tax receipts to the Local Government Fund, subject to this reduction and the listed administrative costs. This rule would begin February 1, 2026.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 29The Bill was in the possession of the House when the Legislature adjourned Sine Die and was placed in the Legislative Files. (DEAD)Latest
- 2025
- Jun 25Carried over, in the same posture, to any special or regular session of the 132nd Legislature, pursuant to Joint Order SP 800.
- Jun 17Later today assigned. (Roll Call Ordered)
- Jun 17On motion of Representative MOONEN of Portland, TABLED pending motion of Speaker FECTEAU of Biddeford, to RECEDE AND CONCUR.
- Jun 17Representative FAULKINGHAM of Winter Harbor REQUESTED a Roll Call. More than one-fifth of the members present expressed a desire for a roll call, which was ORDERED.
- Jun 17Speaker FECTEAU of Biddeford MOVED to RECEDE and CONCUR to ACCEPTANCE of the Majority Ought to Pass as Amended Report and PASSAGE TO BE ENGROSSED as Amended by Committee Amendment "A" (H-648)Minor
- Jun 16Sent down for concurrence
- Vote recorded ACCEPT MINORITY OUGHT NOT TO PASS REPORT. Result: fail.Upper
- Vote recorded ACCEPT MAJORITY OUGHT TO PASS AS AMENDED REPORT. Result: pass.Upper
- Jun 16Under suspension of the Rules, READ A SECOND TIME and PASSED TO BE ENGROSSED AS AMENDED by Committee Amendment "A" (H-648) In NON-CONCURRENCE.Minor
- Jun 16Committee Amendment "A" (H-648) READ and ADOPTEDMinor
- Jun 16READ ONCEMinor
- Jun 16Roll Call Ordered Roll Call Number 593 Yeas 20 - Nays 15 - Excused 0 - Absent 0
- Jun 16Subsequently The Majority Ought to Pass As Amended by Committee Amendment "A" (H-648) Report ACCEPTED PREVAILED
- Jun 16Roll Call Ordered Roll Call Number 592 Yeas 16 - Nays 19 - Excused 0 - Absent 0
- Jun 16ACCEPTANCE of The Minority Ought Not To Pass Report FAILED
- Jun 16Taken from the table by the President
- Jun 13TABLED until Later in Today's Session
- Jun 13RECONSIDERED Accept the The Minority Ought Not To Pass Report
- Jun 13On motion by Senator PIERCE of Cumberland
- Jun 12HELD at the Request of Senator TIPPING of Penobscot.
- Vote recorded ACCEPT MAJORITY OUGHT TO PASS AS AMENDED REPORT. Result: fail.Upper
- Jun 12Placed in Legislative Files (DEAD)Major
- Jun 12Subsequently, the The Minority Ought Not To Pass Report ACCEPTED in concurrenceMinor
- Jun 12Roll Call Ordered Roll Call Number 478 Yeas 17 - Nays 18 - Excused 0 - Absent 0
- Jun 12On motion by Senator GROHOSKI of Hancock the Majority Ought to Pass as Amended Report FAILED
- Jun 12Reports Read
- Jun 11Reported Out - OTP-AM/ONTP
- Vote recorded ACC MAJ OTP AS AMENDED REP. Result: fail.Lower
- Jun 11Sent for concurrence. ORDERED SENT FORTHWITH.
- Jun 11Subsequently, on motion of Representative CLOUTIER of Lewiston, the Minority Ought Not to Pass Report was ACCEPTED.Minor
- Jun 11A vote of the House was taken. 61 voted in favor of the same and 66 against, and accordingly the motion to RECONSIDER FAILED.
- Jun 11The Chair ordered a division.
- Jun 11Representative FAULKINGHAM of Winter Harbor, REQUESTED a division.
- Jun 11Representative SARGENT of York MOVED to RECONSIDER whereby the Majority Ought to Pass as Amended Report FAILED.
- Jun 11(Yeas 70 - Nays 72 - Absent 7 - Excused 2)
- Jun 11ROLL CALL NO. 443
- Jun 11Motion of Representative CLOUTIER of Lewiston to ACCEPT the Majority Ought to Pass as Amended Report FAILED.
- Jun 11Reports READ.
- May 21Voted - Divided Report
- May 21Work Session Held
- May 15Work Session Held - TABLED
- Apr 10Work Session Held - TABLED
- Mar 21Carried over, in the same posture, to the next special or regular session of the 132nd Legislature, pursuant to Joint Order SP 519.
- Mar 14The Bill was REFERRED to the Committee on TAXATION pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.Minor
- Mar 14Received by the Clerk of the House on March 14, 2025.Introduced
EducationTaxes & Budget