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, filed suit 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 controversy stems from a tax-reform law passed by the Legislature and signed by Gov. John Baldacci earlier this year. Majority Democrats passed L.D. 1495, "An Act to Implement Tax Relief and Tax Reform."

The law, which was touted as the most significant change to the state tax code in 30 years, reduces the income tax from 8.5 to 6.5 percent for income below $250,000 and to 6.85 percent for income over $250,000.

To pay for the reduction, the new law increases the meals and lodging tax from 7 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 provide stability to state revenues by broadening the sales tax base beyond new car sales and construction materials. Maine Revenue Services estimates 87 percent of Maine taxpayers will see their overall tax burden go down, even with the additional sales tax added in.

Opponents, including Webster, say they believe the sales tax expansion is permanent, but that the lowering of the income tax is temporary.

They also worry that, while the law is designed to shift more of the tax burden to out-of-state visitors, it 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 signature gathering effort to get the required 55,087 signatures needed to put something on the June ballot via people's veto.

On Sept. 11, they turned in more than 60,000 signatures to Dunlap's office.

By law, Dunlap had 30 days to verify that the signatures were valid.

But Dunlap said budget cuts that forced him to reduce his staff by eight people, and today's election, led to a delay in getting the signatures verified.

He said Monday they 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's tried to be patient, but now that it's three weeks beyond 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 if 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.

Lawyer Dan Billings filed the suit and 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 believes state law and the state constitution are at odds over the issue, and the lawsuit asks a judge to throw out state law.

If that happens, it would be up to lawmakers to take another approach.

Billings said that, even if Dunlap finishes the process within a week, the lawsuit would 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."

Susan Cover -- 620-7015

scover@centralmaine.com