Maine Revenue Service Office, Houlton

Many of you no doubt have heard or read about the proposed closing of the Maine Revenue Service (“MRS”) office in Houlton, Maine. I want to emphasize the word “proposed” as the recommended closing is by no means the final word. The budget proposals must be approved by the legislature following work by the Appropriations and possibly other committees. The budget process includes an opportunity for public comment and input from concerned legislators, of which I am one.

When I learned of the proposed closing of Houlton MRS I contacted the House Chair of the Appropriations Committee, Jeremy Fischer and other members of that Committee. They have stated they will stand with me to work to save the Houlton MRS office. They do so, not because of my winning personality, but because now is not the time to close an office that is generating substantial income for the State of Maine.

As a general matter, Maine Revenue Service is, as it name implies, a revenue generating entity. The Houlton office in particular has generated substantial income from inception to present. From October 1999 through January 2007 the Houlton Office has generated revenue of $52.8 million with an annual average of $8 million. Although not tasked with the responsibility of collection, the Houlton office collected $2.7 million in the current fiscal year (from July 1, 2006 to December 31, 2006).

The Houlton Office staff is trained to process income tax, payroll tax, use tax, tax & rent (circuit breaker) and in auditing and collections. Further, the staff is ready, willing and able to engage in these tasks in “quick response” fashion. The Houlton staff is innovative and income generating. For example, this office performs 30 different audit projects in both income tax and use tax divisions. Further, there is an extremely low turnover rate for employees in the Houlton office. Since the office’s inception in 1999 only three employees have left the office. Every time there are openings at the Houlton office they are sought by many highly trained applicants.

With the State of Maine seeking new sources of revenue, now is not the time to eliminate this innovative office or to terminate these outstanding employees. I will continue to urge my fellow legislatures to objectively review the facts and reverse this unfortunate decision. I encourage you to be involved and contact the members of the Appropriations Committee when this matter comes before them.