Maine Motor Automobile Taxes Are New Freeway Fund Supply
Maine Gov. Janet Mills indicators the freeway funds regulation. (maine.gov)
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Maine Gov. Janet Mills has signed a two-year, $829 million freeway funds regulation making a dependable income stream to fund freeway repairs utilizing parts of state motorized vehicle taxes.
Mills stated the brand new measure will lower state borrowing by creating “a sustainable, long-term supply of funding for infrastructure restore and unlock practically a billion {dollars} in matching federal funding.”
The brand new funding will inject cash into the state’s highways by allocating 40% of the 5.5% gross sales tax on automobile purchases. It additionally requires taking 40% of gross sales and use taxes collected by the state Bureau of Motor Autos, which is underneath the secretary of state’s workplace.
The brand new income stream is projected to supply greater than $200 million for infrastructure restore each two years. Up to now, Maine has issued bonds to supply income for freeway transportation enchancment tasks.
This morning, I signed a bipartisan Freeway Fund Finances that builds on my Administration’s report funding in Maine roads and bridges. pic.twitter.com/dNPk0GkWf4
— Governor Janet Mills (@GovJanetMills) June 16, 2023
The governor’s workplace famous the funding supply will allow the Maine Division of Transportation to implement its three-year work plan. These tasks embrace 264 freeway security and spot enhancements, 271 miles of freeway constructing or repairs, work on 302 bridges and paving 3,178 miles of roads.
Bruce Van Notice, MaineDOT commissioner, reacted to the governor’s motion. “The necessity for sustainable, devoted income for MaineDOT’s capital program has been a persistent problem for many years, making long-term planning very difficult,” he stated.
Earlier than Mills enacted the brand new regulation June 16, the state confronted continued difficulties in financing freeway infrastructure expenditures. In October, Kirsten Figueroa, state commissioner of the division of Administrative & Monetary Providers, accomplished the 4-Yr Income and Expenditure Forecast required each two years underneath Maine regulation. The 32-page report projected a shortfall within the 2024 biennium of $712 million “representing a structural hole between revenues and expenditures that seems to be widening.” Maine adopts budgets for two-year intervals.
The Maine Coverage Institute, a nonprofit and nonpartisan group representing state taxpayers, applauded the brand new progressive freeway funding plan.
“Maine Coverage has lengthy supported redirecting a portion of automobile-related gross sales taxes to the Freeway Fund to shore up the state’s transportation infrastructure, scale back future borrowing and spare Mainers from tax will increase,” stated CEO Matthew Gagnon. “We’re happy the Legislature has lastly endorsed this modification to save lots of taxpayers from future debt.”
