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