LD671

Maine LD671 eliminates the state income tax starting January 1, 2026, and mandates zero-based budgeting for state agencies.

Maine LD671 eliminates the state income tax beginning on January 1, 2026. It requires the Department of Administrative and Financial Services to review statutes referring to income tax and submit a report with legislative recommendations to the 132nd Legislature's Second Regular Session. The bill also mandates the development of a zero-based budgeting system for state agencies, requiring them to justify programs and activities using cost-benefit analysis without regard to prior budgets. This system applies to biennial budget documents for fiscal years 2026-27 and 2027-28.