November 20, 2007
Forecast says state will be $95M poorer
The state's Revenue Forecasting Committee yesterday reduced expectations for Maine's General Fund by $95 million, which could lead to budget cuts or force officials to scramble for new revenue sources.
The downward revision reflects a grim outlook on sales and corporate tax collections, among other variables, according to the Associated Press. The committee lowered sales tax projections by $41 million through June 30, 2009, and corporate tax projections by $14.7 million. Cigarette and tobacco tax revenues were scaled back by $12 million.
Meanwhile, the Legislature's taxation committee yesterday approved a new estate tax, or inheritance tax, that mirrors the federal one, despite Maine Revenue Services' prediction that this will cause Maine to lose an additional $56 million a year in revenue.
The downward revision reflects a grim outlook on sales and corporate tax collections, among other variables, according to the Associated Press. The committee lowered sales tax projections by $41 million through June 30, 2009, and corporate tax projections by $14.7 million. Cigarette and tobacco tax revenues were scaled back by $12 million.
Meanwhile, the Legislature's taxation committee yesterday approved a new estate tax, or inheritance tax, that mirrors the federal one, despite Maine Revenue Services' prediction that this will cause Maine to lose an additional $56 million a year in revenue.
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