MAINE STATE CHAMBER OF COMMERCE
  • About Us
    • Connect with Us
    • Affiliates & Partners
    • Meet the Team
    • Our Board
    • Local Chambers of Commerce
  • Membership
    • Benefits of Membership
    • Join the Chamber
    • Member Companies
    • Member Search
  • Public Policy
    • Public Policy Committees
    • Grassroot Resources
    • Find Your Legislator >
      • Representatives
      • Senators
  • Events
    • Calendar of Events
    • Annual Meeting and Dinner
    • Sponsorship Opportunities
    • Business Day at the Statehouse
    • Board Meetings & Board Events
    • DC Fly-In
    • Legislative Strictly Social
    • Regional Breakfasts
    • Scramble for Scholars
    • Webinars by The Maine State Chamber of Commerce
  • Initiatives
    • Education Foundation
    • Keep Maine Competitive
    • Maine Economic Research Institute (MERI)
    • Senior Leaders of Tomorrow Development Program
  • Newsroom
    • Impact Newsletter
    • MSCC Blog
    • The Bottom Line
    • The Maine Take
    • Making Maine Work
    • MERI Roll Call
    • OneVoice Maine Magazine
    • Policy Brief Series with Educate Maine
    • Press Kit
    • External Social Media Policy
  • Member Login
  • AI In Action

Taxation committee tables service provider tax bill

2/14/2020

0 Comments

 
Chamber opposes department bill that proposes new tax
 
On Tuesday, February 11, the Joint Standing Committee on Taxation tabled LD 2011, An Act to Update Certain Provisions in the Income Tax and Service Provider Tax Laws, a department bill sponsored by Rep. Ryan Tipping (D-Orono). Linda Caprara testified on behalf of the Maine State Chamber in opposition to the bill the week before because it would impose a new tax on users of streaming services transferred for less than permanent use. 
Currently, the State imposes a sales-and-use tax on digital products transferred electronically for permanent download. Digital services that are just streamed for temporary use are not currently subject to sale and use tax. This bill would codify different treatment for these two types of transactions: one would be subject to 5.5% sales tax; while the other would be subject to 6% service provider tax. In addition, as drafted, it is not clear on whom that tax falls.
      
The Maine State Chamber testified that, in the event the committee decides to go forward with the legislation, the bill should be amended to provide a clear definition of the term “digital audio visual” and “digital audio services.” By adding the definition, it would clarify that the tax applies only once to the “end user,” not to additional service provider contractual relationships along the way. At Tuesday’s work session, Maine Revenue Services said they did not object to the amendment.  Without this clarification, the bill would provide a lack of transparency of the tax base and result in multiple layers of tax. Again, the amendment would clarify that the tax applies once and would prevent so-called double taxation of the same service.      
             
​The next work session on LD 2011 has not yet been scheduled. If you have any questions, please contact Linda Caprara by calling (207) 623-4568, ext. 106, or by emailing [email protected]. 
0 Comments



Leave a Reply.

    Archives

    May 2025
    April 2025
    February 2025
    January 2025
    December 2024
    November 2024
    October 2024
    September 2024
    August 2024
    July 2024
    April 2024
    January 2024
    October 2023
    September 2023
    March 2023
    January 2023
    December 2022
    September 2022
    August 2022
    June 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    September 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    August 2020
    July 2020
    June 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019

    RSS Feed

Copyright Maine State Chamber of Commerce. All rights reserved.
 128 State Street | Suite 101 | Augusta, ME 04330-5630
 Phone: (207) 623-4568
For media inquiries, please contact Katie Clark (207) 233-2230
For membership inquiries, please contact Mark Ellis. (207) 623-4568
  • About Us
    • Connect with Us
    • Affiliates & Partners
    • Meet the Team
    • Our Board
    • Local Chambers of Commerce
  • Membership
    • Benefits of Membership
    • Join the Chamber
    • Member Companies
    • Member Search
  • Public Policy
    • Public Policy Committees
    • Grassroot Resources
    • Find Your Legislator >
      • Representatives
      • Senators
  • Events
    • Calendar of Events
    • Annual Meeting and Dinner
    • Sponsorship Opportunities
    • Business Day at the Statehouse
    • Board Meetings & Board Events
    • DC Fly-In
    • Legislative Strictly Social
    • Regional Breakfasts
    • Scramble for Scholars
    • Webinars by The Maine State Chamber of Commerce
  • Initiatives
    • Education Foundation
    • Keep Maine Competitive
    • Maine Economic Research Institute (MERI)
    • Senior Leaders of Tomorrow Development Program
  • Newsroom
    • Impact Newsletter
    • MSCC Blog
    • The Bottom Line
    • The Maine Take
    • Making Maine Work
    • MERI Roll Call
    • OneVoice Maine Magazine
    • Policy Brief Series with Educate Maine
    • Press Kit
    • External Social Media Policy
  • Member Login
  • AI In Action