LePage seeks to nix BETR; insurance rate review returns
Make it BETE, not BETR
Gov. Paul LePage wants to find $11.7 million in savings by reducing the state's participation in business equipment tax reimbursement programs and excluding retail stores. LePage has proposed repealing the Business Equipment Tax Reimbursement program and transitioning qualifying businesses — no retailers — to the similar Business Equipment Tax Exemption program. That switch would put a greater burden on local municipalities to shoulder tax breaks currently supported 100% by the state. Rather than direct reimbursements, the BETE program provides a property tax exemption for businesses that install new equipment and machinery. Under the LePage plan, municipalities would be reimbursed for 60% of the BETE tax break.
With a full agenda set, the 126th Legislature is back to work. Here are some notable issues coming out of State House as Maine's lawmakers return:
Business briefing
The measures of Maine's economy are many, but national rankings by business-climate watchers tend to get the most attention. In a presentation from National Federation of Independent Businesses State Director David Clough, members of the Legislature's Labor, Commerce, Research and Economic Development Committee saw a wide swing among Maine's economic indicators. The presentation challenged Forbes, which has notoriously ranked Maine 50th in business friendliness for two consecutive years. See all of Clough's rankings here.
Insurance goals
Two bills are aimed at repealing Public Law 90, which reduced the state's authority to review health care insurance rate increases. Separate Democrat-led bills in the House and Senate would restore the state's ability to approve or deny any rate increase. Currently, the rules of PL 90 are in line with a new Affordable Care Act law, which says premium increases of 10% or more may be subject to regulatory review. Both LD 83 and LD 102, sponsored by Democratic Sen. John Patrick of Oxford and Rep. Adam Goode of Bangor respectively, will be reviewed by the Joint Standing Committee on Insurance and Financial Services.
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