Please contact your legislators today and encourage them to vote ‘NO’ on LD 1342, the local option sales tax increase

As amended, LD 1342, An Act To Authorize a Local Option Sales Tax on Lodging and Other Goods and Provide Funding for Tax Abatement and Rental Relief, would allow municipalities to adopt a local option sales tax of 1% on prepared foods and lodging. This bill will tax prepared foods, such as rotisserie chicken, that families purchase at the grocery stores to feed their families.

Please contact your legislators today!

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LD 1342 will increase taxes on businesses that have already been ravaged by the COVID-19 Pandemic. 
 
Enacting a local option sales tax increases the total tax burden in Maine…

• This bill adds another layer of sales tax to items purchased in the municipalities that enact it.
  
• Local option taxes are nothing more than another way to raise revenue for municipalities and would do nothing to reduce taxes at the local level. After all, any time a municipality needs a new fire truck, a new school, or any new budget item, they could simply impose this tax. 
  
• Municipalities need to focus on spending efficiencies not just continually raising taxes on Maine businesses and Maine people.
  
• Municipalities already receive full funding for revenue sharing. Why raise additional taxes, taking money from Maine taxpayers’ pockets?
  

 
Local option sales taxes hurt small brick-and-mortar businesses…
Many folks buy local to support small brick-and-mortar businesses in their municipalities. Local businesses in one locale compete with local businesses in another. Businesses located in towns that enact a local option sales tax will be at a competitive disadvantage with businesses in municipalities that do not enact a local option sales tax. It will pit one community against another. Local brick-and-mortar retail businesses will never be able to compete in that high-taxed environment. The tax will hit their bottom line, and they may not be able to pass the expense on to the consumer – ultimately losing sales to neighboring towns that do not have a local option sales tax. Consumers will vote with their feet! In addition, these businesses also compete with online retailers. 
 
Local option sales taxes impact local economic development efforts…
Municipalities around the state work hard to try to attract businesses to their locales, and many hire economic development directors to ensure their success. This will do nothing to attract businesses, but it will discourage businesses from locating in towns that have additional taxes. This bill will make towns that impose local option sales taxes less attractive when making location decisions. 

Once local option taxes are in place, they will be virtually impossible to remove, as that municipality will become dependent on the revenue. 

We need to keep all our businesses competitive and try to grow our economy. This bill hurts economic growth and recovery and puts Maine businesses at risk of being uncompetitive. 

Please don’t delay! CONTACT YOUR LEGISLATORS TODAY and urge them to VOTE NO on LD 1342!