AUGUSTA, Maine — Gov. John Baldacci has signed into law an overhaul of the Maine tax code.
The new law lowers Maine’s top income tax rate but broadens the sales tax to new goods and services.
Baldacci was surrounded by legislative leaders and others who supported the bill when he signed what he called a historic bill in his office. Baldacci said the changes will stabilize the state’s revenue stream, export more of Maine’s taxes and transform the tax code for the 21st Century.
The law Baldacci signed was revised from an earlier version passed by lawmakers to include the governor’s demands.
It bumps up Maine’s meals and lodging tax while channeling some of the proceeds to tourism promotion.