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Tuesday, June 30, 2009

38 Tax and Fee Increases in Budget Tomorrow

The Josiah Bartlett Center for Public Policy is preparing a new series"Understanding the State Budget". This series will detail the numbers that make up the state budget to help understand changes that were made and better understand various changes made to the budget in historical context. We will post the complete series when it is published. Here is an excerpt:

The budget for fiscal years 2010 and 2011 passed in June of 2009 includes 38 new or increased taxes and fees that are projected to raise $318 million more than would have been budgeted without the 38 changes over the two years of the budget. Tax and fee increases can include major tax changes like increasing the Room and Meals Tax from 8% to 9% which is projected to raise an additional $27.2 million each year. On the other hand increases fees for land and condominium sales will probably raise about $70,000 each year.

The list below includes all fees passed so far this year. The bulk of them were passed as part of the budget. The list does not include fines for illegal activity. Fines are not charges designed to generate revenue for services but rather a punitive device. Each individual fee is listed but not every charge is listed as a separate fee. For example, although Health Facility Licensure Fees were increased on 23 different types of facilities, it is most reasonably described as one fee.

The 38 tax and fee increases are categorized into the ten tax increases and 28 fees although the distinction between a tax, a fee, and a charge is blurry and probably of little importance to the one paying.

2009: Thirty Eight Tax and Fee Increases. Ten tax changes and the three largest registration fees account for 88% of the $318.6M cost. In 2007, lawmakers raised 32 taxes and fees.

Each tax or fee is listed along with the amount revenue projections were increased as a result of the estimated impact of the tax change. A more complete description of the change is included in the text of HB2(2009) or in the bill listed in the case of the three fees at the end of the list. In some cases, no additional dollars were budgeted although the change will likely raise a modest amount.

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