AUGUSTA — The chairman of the Maine Republican Party filed a lawsuit Monday to try to force Secretary of State Matt Dunlap to take action on people's veto signatures.
Charlie Webster, a member of Still Fed Up With Taxes, sued in Kennebec County Superior Court, asking a judge to require Dunlap to call for an election, even if he hasn't finished verifying the signatures.
The case stems from a tax-reform law passed by the Legislature and signed by Gov. John Baldacci earlier this year.
The law, backed by the Democratic majority, was touted as the most significant change to the state tax code in 30 years. It reduces the income tax from 8.5 percent to 6.5 percent for annual incomes below $250,000, and to 6.85 percent for incomes over $250,000.
To pay for the reduction, the new law increases the meals and lodging tax from 7 percent to 8.5 percent and applies the state's 5 percent sales tax to dozens of additional items, such as car repairs, movie tickets and dry cleaning.
Supporters say the new system will stabilize state revenue by broadening the sales tax base. Maine Revenue Services estimates that 87 percent of Maine taxpayers will see their overall tax burden reduced, even with the additional sales taxes.
Opponents, including Webster, say they believe the sales tax expansion will be permanent but the lower income taxes will be temporary.
They also worry that the law, designed to shift more of the tax burden to visitors from out of state, will hurt senior citizens, who won't benefit from an income tax break but will pay more to eat out in restaurants or for services such as car repairs.
Webster and Sen. David Trahan, R-Waldoboro, led the effort to gather at least 55,087 signatures to put a repeal proposal on the June ballot. On Sept. 11, they turned in more than 60,000 signatures to Dunlap's office.
By law, Dunlap had 30 days to verify whether enough signatures were valid.
But Dunlap said budget cuts that forced him to reduce his staff by eight people, and today's election, delayed the verification.
He said Monday that the job will be done "within a week."
"We're comfortable saying that," he said. "We can see the light at the end of the tunnel."
Trahan, who said he considers Dunlap a friend, said he has tried to be patient but, three weeks after the deadline, he felt he had to take legal action.
"We're at a standstill now," he said. "Until we get certification, we can't build a coalition."
Trahan said fierce opposition from Democrats during the signature-gathering process, and the fact that Dunlap is a Democrat who was appointed to his position by the majority party, makes him wonder whether something else is going on.
"It has the appearance that Democrats as a whole will do everything in their power to make it difficult for us," he said.
Dan Billings, the lawyer who filed the lawsuit, said it seeks to do two things.
First, it's Billings' contention that because Dunlap missed the deadline, he no longer has the authority to verify the signatures. So the lawsuit asks a judge to order Dunlap to issue a proclamation calling for a June election.
Second, Billings says state law and the state Constitution are at odds over the issue. The lawsuit asks a judge to throw out state law. If that happens, it will be up to lawmakers to take another approach.
Billings said that even if Dunlap finishes the process within a week, the lawsuit will move forward.
"Him making a decision doesn't make the legal issues moot," he said. "Otherwise, he could do this again.
"What happens when the secretary of state ignores deadlines is a real issue," Billings said.
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