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Wednesday, April 2, 2025

Maine proposes higher income tax and new data privacy act

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Mike Donohue Senior Media Manager – Northeast | Official Website

Mike Donohue Senior Media Manager – Northeast | Official Website

Advocates in Maine are pushing for legislation that seeks to amend the state's tax laws and enhance privacy protections. Among the proposals is LD 1089, which aims to impose a 4% surtax on taxable incomes exceeding $1 million. The revenue generated would support state funding of local education costs. If enacted, this would position Maine as having the second-highest state tax rate for incomes over $1 million, following California.

The proposal mirrors a 2016 referendum that was narrowly approved by voters but repealed in 2017. "NFIB will strongly oppose LD 1089," reflecting its previous stance against the similar measure in 2016.

In addition to tax legislation, there is a push to enact the Maine Consumer Data Privacy Act (LD 1088) and amend laws governing paid family and medical leave (LD 894). Updates have been made available on the Paid Family & Medical Leave website, including frequently asked questions, certified insurance carriers and plans, and a chart for estimating premiums and benefits.

For more information about these legislative efforts, visit https://legislature.maine.gov/.

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