AUGUSTA, Maine — A bill that would adjust the formula for how the state distributes money to municipalities passed through the Legislature’s Taxation Committee this week.

LD 1835, sponsored by Assistant Senate Minority Leader Justin Alfond, D-Portland, affects the Disproportionate Tax Burden Fund, commonly known as “revenue sharing 2.”

Currently, all municipalities receive a set percentage of revenue sharing from the state from sales taxes and other fees that helps pay for local services. Revenue sharing 2 kicks in for cities and towns that have a property tax rate that exceeds 10 mills.

A mill is equal to $1 of tax per $1,000 of property value. In other words, a homeowner in a town with a mill rate of 10 would pay $2,000 in taxes on a $200,000 home.

Alfond said his bill would restore the revenue sharing 2 portion of the tax code to its original intent by increasing the threshold from 10 mills to the statewide average mill rate, currently 11.76.

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