MSBA Legislative Update 03-27-09

TAX REFORM HEARING

LD 1088, Rep. John Piotti?s proposal to modernize the tax laws and provide tax reform is scheduled for public hearing on April 2 at 1:00 p.m. in Room 127 of the State House. The Taxation Committee is expecting many individuals to attend the public hearing, and it is the only bill scheduled to be heard by the Committee that day. The bill seeks to reduce Maine?s top income tax rate from the current 8.5% to 6.5% by making a number of other changes in the tax code. These include proposing to increase the tax on prepared meals and lodging, to expand the current sales tax to amusement and recreational items, to expand the current sales tax to certain services such as rental of living quarters, transmission and distribution of electricity, sales of extended service contract on automobiles, sales of prepaid calling services and others. It does not seek to tax professional services, or other personal services such as hair dressers or barbers.

The bill is certain to be a touch-point for robust discussions and deliberations by the Legislature.

COMMISSION ON INDIGENT LEGAL SERVICES INTRODUCED

• LD 1132 proposes to establish the Maine Commission on Indigent Legal Services and is sponsored by Sen. Barry Hobbins and co-sponsored by 22 legislators. The bill proposes to establish a new commission on indigent legal services, as an independent commission with the purpose to provide efficient, high-quality representation to indigent criminal defendants, juvenile defendants, and children and parents in child protective cases. The bill is currently pending reference to a Committee, which is expected to be accomplished on March 31, the next time the House and Senate convene for session. The bill is also expected to have a public hearing scheduled for mid-April.