Source of Funds: 5.0% of the State Government's monthly sales, corporate and personal income tax revenues are set aside to fund the municipal revenue sharing pool.Ìý
Source Information: Three statistics for each municipality are needed to calculate the distribution percentage:
- State Valuation (provided by the State Tax Assessor);
- Tax Assessment (provided by the Property Tax Division of fb88 Revenue Services) and
- Estimated or Actual Population (provided by the DHHS Office of Vital Records).
Revenue Sharing I - Timing and Calculation: Municipal Revenue Sharing is distributed by the 20th of each month to each municipality* based on the Revenue Sharing I (REV-I) formula, (see 30-A M.R.S.A. s. 5681). The REV-I calculations work as follows:
- (population x assessment)/state valuation = computed number
- computed number/sum of all computed numbers = proportional share of REV-I distributions
REV-II Distributions: In fiscal year 2016, 2017, 2018, 2019, approximately 20% of funds are set aside in the Local Government Fund and a lump sum distribution of $4 million at the end of each year.Ìý Distributions are to be made by the 20th of each month to each municipality under the REV-II formula. The REV-II calculation works as follows:
- assessment/state valuation = mil. rate
- (mil. rate - 0.0113) x population = computed number
- computed number/sum of all computed numbers = proportional share of REV-II distributions
*For purposes of the program, the unorganized territory, plantations, the Passamaquoddy Tribe, and the Penobscot Nation are treated as if they were municipalities.