In a narrow 76-73 party-line vote, the Maine House of Representatives passed a $529 million supplemental budget that imposes a new 2% surtax on millionaires while authorizing one-time $300 “affordability” relief checks for more than 514,000 lower and middle-income Mainers.

The bill adds roughly $227 million in net new spending to the state’s current two-year budget. No Republicans supported the measure.

The budget includes a 2% income tax surcharge on earnings above $1 million for single filers and $1.5 million for heads of household and joint filers. The tax is projected to affect an estimated 2,400 tax filers and generate approximately $150 million over the next two years.

Roughly 514,000 Mainers will be eligible for the one-time payments. Eligibility is limited to individuals earning less than $50,000 (single), $75,000 (head of household), or $100,000 (joint filers).

The supplemental budget now heads to the Democratic-controlled Senate, where it is expected to pass along similar party lines. The legislative session is scheduled to end next week.

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