Maine’s State and Local Tax Collections: Fiscal Year 2005 Update
Read the full report | Recently, the U.S. Census Bureau released estimates for local tax collections for state fiscal year (FY) 2005. The FY 2005 state and local tax collection data revealed a growing level of taxation Maine taxpayers. As shown in Chart 1, Maine’s state and local tax collections as a percent of personal income were up 0.2 percent to 13.07 percent in FY 2005 from 13.05 percent in FY 2004.
Nationally, state and local tax collections as a percent of personal income were up 2.4 percent to 11 percent in FY 2005 from 10.74 percent in FY 2004. While Maine’s level of taxation grew more slowly than the national average, that fact provides very little solace to Maine’s beleaguered taxpayers.
Table 1 shows that, in 2005, Maine maintained the number three national ranking. In contrast, all other New England states ranked below Maine: Vermont, five; Rhode Island, eight; Connecticut, 11; Massachusetts, 32 and New Hampshire, 47. Wyoming tightened its hold on the number two spot as severance tax revenue continued to increase; growing by 17.9 percent between FY 2004 and 2005.
Unfortunately, this relative lull in the overall growing trend in Maine’s level of taxation will likely to be short-lived. While local FY 2006 tax collection data will not be available until this same time next year, state tax collection data for FY 2006 is already available from the U.S. Census Bureau. The state data is not encouraging as it shows a 12 percent increase to 8.61 percent in FY 2006 from 7.69 percent in FY 2005.