As the 128th legislature gets underway, many legislators are busy getting their bills printed, finding co-sponsors and waiting for the scheduled public hearings. My first bill, LD 16, An Act to Exempt Certain Individuals Who Are 70 Years of Age or Older from Maine Income Tax, has gone through the initial stages and awaits the scheduling of the public hearing. 

My bill looks to exempt all Maine residents who are retired and receiving retirement benefits, whether that is social security, distributions from their 401K plans or IRA accounts, from paying State of Maine income taxes. My bill does allow an individual to work up to 20 hours per week and make no more than $10,000 a year in part-time, limited employment and still qualify for the exemption.

Why am I pursing this bill? For many years we have watched retired Maine residents move to Florida, for six months and a day, in order to claim Florida as their primary residence, thus averting paying Maine’s income tax. Many of these Mainers would rather stay here through the holidays and head to Florida for only a few months, January through March. When we lose them as Maine residents we also lose their local vehicle excise tax, their bank accounts, their investment accounts and their purchasing power for all those months they are no longer here, especially the months of October through December, when retail sales are at their highest.

In addition to these economic factors, we also lose the value of the medical services that our hospitals and medical professionals provide these individuals. Hospitals must be staffed and designed to take on the maximum number of patients in their geographic area. When many who regularly seek medical treatment move away for half the year, it seriously impacts the revenues hospitals and the medical profession needs to maintain the staffing, equipment and facilities to meet the peek demands.

When I was out campaigning this past year I met more and more people who told me they were no longer Maine residents and had moved their residency to Florida or other states that do not have a state income tax. Many were sorry to have had to leave Maine but living on a fixed income, the savings they achieved by leaving the extra three months was too much to give up. When asked what it would take to keep them here, many told me the income tax was the real driving force in their decision.

Many in Augusta continuously decry the need to take care of our elderly and senior citizens. They talk about providing adequate housing, assistance for high prescription costs, heating assistance, etc. These are all necessary and needed. But for me the first thing we should do is stop taking away their retirement income through the income tax. Let them keep all that they have earned and encourage them to retire here in Maine. In the end it will be better for us all. Retire and stay in Maine, the way life should be.

— State Rep. Robert “Bob” Foley, R-Wells, represents House District 7, which includes part of Wells.