Baldacci optimistic over tax take

AUGUSTA – A slight increase in the collection of state sales and income taxes resulted in a 6.2 percent gain over projected Maine revenues during July.

The additional $11.2 million in tax collections identified in a preliminary report prompted Gov. John E. Baldacci to conclude the state’s tourism industry is holding its own, despite a soggy start to the season and two gloomy weeks of gray skies.

“I worried about the weather and its effect on tourism,” he said. “But I think this recognizes this we came out a little bit ahead. It’s good news at this point and it’s been picking up since the Fourth. In fact, you could probably say we didn’t see summer until the Fourth of July.”

Baldacci said that with the advent of Internet access to regional weather conditions, many vacationers apparently made last-minute decisions to forgo a Maine vacation with less-than sunny conditions.

“We’ve had bad, cold wet weather,” he said. “It’s been so bad, that we’re now over the drought. And we’ve had a lot of no vacancies. I was worried, frankly, because of the weather.”

But despite the possible cancellations, tax revenues indicate that business hasn’t been especially slow.

Sales taxes of $86,508,519 exceeded projections by 0.7 percent or $608,562 and formed the majority of the total revenue figure when included with $83,052,540 in individual income tax collections, up by nearly 17 percent or almost $12 million. Corporate income tax collections did not meet state projection and were down by 56 percent or a little more than $2.3 million.

Other boosts in state revenues during July were found in liquor sales which exceeded projections by 14.7 percent or nearly $380 thousand, taxes collected from insurance companies which were up by 21 percent, or a little more than $490 thousand, and cigarette sales up by nearly 3 percent or $238,000.