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CONTRARY TO MEDIA REPORTS, MILLS’ BUDGET INCREASES SPENDING AND ADDS NEW TAXES

We have posted the link to our analysis at the top of the comments below. MPBP raises a number of concerns and points out several missed opportunities in this report. We’ll be sharing these with you in posts here over the coming weeks.

Let’s start with those new taxes and fees.

GOVERNOR MILLS IS TRYING FOR THE SECOND TIME TO TAX VIDEO AND AUDIO STREAMING. SHE’S ALSO CHARGING A NEW MANDATORY MONTHLY 10 CENT PER LINE FEE FOR CELL PHONES.

The Governor and her staff have been careful to say that the biennial budget proposal does not raise “tax rates.” This has been construed by some members of the media to mean that it does not add any taxes or revenue streams. But it does.

First, the biennial budget adds the digital streaming tax on audio streaming, video streaming, and even ringtones. This would start next fall. This same tax was proposed in a stand-alone Department of Administrative and Financial Services bill last year, although its revenue was included in the Governor’s supplemental budget.

When they did the emergency shut down of state government in March, this new tax was not included in the last-minute budget bill. So Governor Mills is bringing it back in this budget proposal.

Second, the biennial budget expands the ConnectMaine 10 cents per phone line monthly fee. Currently, this fee is only mandatory on wired phone lines; wireless carriers can collect it “voluntarily.” Now it is being expanded to every type of phone carrier line, including cell and voice over internet protocol.

This mandatory expanded collection would start next January.

This fee is essentially a tax on business and consumer phone lines that is redirected to pay for broadband expansion.

You can read our full report below. We’ll be posting more analysis so you know what is on the table in Augusta.

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