Taxation committee holds hearing on local option sales tax bills that affect hospitality industry already ravaged by the pandemic
Dealing with the unsurmountable losses during the COVID-19 pandemic should be enough for Maine’s hospitality industry. Yet, On Wednesday, May 5, the Joint Standing Committee on Taxation held a public hearing on two local option tax bills that propose to allow municipalities a path forward for enacting local option sales taxes on lodging, prepared foods, and marijuana products. This would be the beginning of the proverbial “camel’s nose under the tent” scenario for local option taxes.
The Maine State Chamber of Commerce testified in opposition to both of the local option tax bills – 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, and LD 1418, An Act to Allow a Local Option Sales Tax on Meals and Lodging. LD 1342 would authorize a municipality to impose a 1% local option sales tax on lodging, if approved by local referendum. LD 1418 would authorize a municipality to impose a 1% local option sales tax, if approved by local voters in referendum, on prepared foods, short term rentals, and marijuana products.
The Maine State Chamber has long opposed local option sales taxes for a variety of reasons, including:
The work session for these bills will be held on Tuesday, May 11 at 9:00 a.m. If you have any questions, please contact Linda Caprara by calling (207) 458-2133 or (207) 623-4568, ext. 106, or by emailing firstname.lastname@example.org.