Maine Pension Tax Exemption Vetoed

SEPTEMBER 1999 - 766 Mass Retirees Subject To Maine Tax - Public employees of the State of Maine have again been unsuccessful in repealing Maine's law that taxes their pension.

bill passed by the Maine Legislature which would have provided a tax
exemption for over 51,000 civil service retirees including teachers,
municipal, state, federal and military retirees was vetoed by Governor
Angus King.

The $10.5 million cost
of the exemption would have been offset by taxing Social Security
benefits identical to federal income tax laws. About 26,000 filers of
the 242,000 individuals that receive Social Security benefits in Maine
would have been affected.

In his
veto message, King said that he could not justify the imposition of the
supporting tax burden squarely on the shoulders of other Maine
retirees. "This new tax would serve as a disincentive for many retirees
to remain in, or return to, Maine's workforce," he said.

Maine Association of Retirees, sponsors of the bill, say that the
Association is now working with the Legislature's taxation committee on
a new bill for the 2000 session.

Association has 766 members living in Maine, most of whom pay taxes in
the Pine Tree State. Maine retirees living in Mass. pay taxes in our