A group of Republican lawmakers have introduced a bill aims to eliminate the eight percent sales tax on prepared food, including meals sold in restaurants.
The official summary of this legislation indicates that the purpose of this change would be to “mak[e] dining out more affordable,” as well as potentially to boost tourism.
The Department of Economic and Community Development (DECD) would be directed under this legislation to launch an advertising campaign to “encourage tourism in Maine and promote dining establishments as tax-free, with the exception of alcoholic beverages.”
To offset the loss of revenue as a result of this tax cut, new and increased sales taxes would be levied, and the state government would be directed to conduct a “comprehensive audit” with the goal of eliminating “inefficiencies and waste.”
In place of the sales tax on prepared foods, the legislature would explore options for “broadening the items subject to sales tax” and increasing existing taxes on “high-end luxury items” such as bikes and boating gear.
Also potentially subject to higher sales taxes would be smartphones, laptops, and elective medical procedures that are “not medically necessary.”
Sales tax exemptions on “nonessential goods and services” would also be assessed “to ensure” that only exemptions “intended to provide a fair system of taxation” are maintained.
Because this legislation is a concept draft, more details are not available at this time regarding the specific changes it would entail.
LD 908 was sponsored by Sen. Joseph Martin (R-Oxford) and cosponsored by Sen. Stacey Guerin (R-Penobscot), Sen. Jeff Timberlake (R-Androscoggin), Rep. Paul R. Flynn (R-Albion), Rep. Rachel A. Henderson (R-Rumford), Rep. Caldwell Jackson (R-Oxford), Rep. Shelley Rudnicki (R-Fairfield).
This bill has been referred to the Taxation Committee for further consideration, but a public hearing has not yet been scheduled, although one will likely be scheduled in the coming weeks.
Although the Joint Rules Committee rejected along partisan lines a proposal that would have done away with concept drafts entirely — as they have become an increasingly controversial tool — they did approve more stringent regulations.
Under these new rules, the full text of LD 908 will be made publicly available at least two days prior to the bill’s public hearing.
Click Here for More Information on LD 908
In the opposite direction, a Democrat-led bill introduced earlier this month looks to levy an additional three percent sales tax on hotel rentals — on top of the pre-existing nine percent sales tax — in order to increase the amount of state funding available for public schools.
The supporters of Rep. Michael Brennan’s (D-Portland) proposal intend for the additional funds to be “credited directly” to the Maine Department of Education to fund school construction, as well as K-12 public education more generally.
Nothing, however, would prevent future legislatures from re-purposing the funds raised by the tax, as state revenue streams cannot be permanently earmarked.
The new hotel tax would be collected in addition to the 9 percent sales tax already imposed on the rental of lodging in Maine, raising the total tax on a hotel rental to a total of 12 percent.
[RELATED: Democratic Lawmakers Propose Hotel Tax Hike to Increase Money for Schools]
A public hearing for this bill, LD 225, has been scheduled for Wednesday, March 12 at 2pm before the Taxation Committee in State House Room 127. Testimony may also be submitted online at www.mainelegislature.org/testimony.
Another group of Democrat lawmakers led by Sen. Donna Bailey (D-York) are pursuing a proposal to stabilize seniors’ property tax bills by allowing municipalities to adopt a local option sales tax.
If approved, this legislation would allow municipalities to impose a one percent sales tax on prepared food and living quarter rentals and use the revenue to offset the cost of stabilizing the property tax bills for eligible homeowners who are 62 years of age and older.
The Taxation Committee has not yet scheduled a public hearing for this bill, LD 559, but one can be expected in the next few weeks.
How about no sales tax, period. Meals are tax free but we will raise taxes on Mainers who cannot afford to dine out, smart, real smart.
Rather than random tax gimmicks, why not find cuts to eliminate tax payer burden.
Our property taxes in Maine are out of control.
Republicans remember optics matter. Taxes are taxes, focus on spending cuts.
Tax the Bikes and boats. Then we could cut the search and rescue costs also.
The lakes are just full of pontoon boats and drunks. Saves the whales
Put a head tax on illegals as they are just a burden. They can not drive.
Will this amount to $280,000,000.00 that Governess Mills is going to lose the State of Maine by refusing to follow Federal guidelines for restricting girls’ sports teams to girls?