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ME LD1335

ME LD1335
An Act To Provide for Exemption from the Sales Tax for Menstrual Products


summary

Introduced
03/30/2021
In Committee
03/30/2021
Crossed Over
06/08/2021
Passed
06/08/2021
Dead
05/09/2022

Introduced Session

130th Legislature

Bill Summary

This bill amends the definition of "grocery staples" to include toilet paper, diapers or menstrual products, effective August 1, 2022. The bill requires the Department of Administrative and Financial Services, Maine Revenue Services to study any sales tax revenue lost by classifying toilet paper, menstrual products and diapers as grocery staples, which are exempt from sales tax. Maine Revenue Services is required to study available options to offset any lost sales tax revenue, including taxation of imported luxury foods. Maine Revenue Services is directed to submit a report to the Joint Standing Committee on Taxation by December 1, 2021, and the committee is authorized to submit a bill based on the report to the Second Regular Session of the 130th Legislature.

AI Summary

This bill amends the definition of "grocery staples" in Maine's sales tax law to include toilet paper, menstrual products, and diapers, effectively exempting those items from the state's sales tax. The bill also requires the Department of Administrative and Financial Services, Maine Revenue Services to study the potential loss of sales tax revenue from this change and explore options to offset that loss, such as taxing imported luxury foods. The department must report its findings and recommendations to the Joint Standing Committee on Taxation by December 1, 2021, and the committee is authorized to submit a bill based on the report to the Second Regular Session of the 130th Legislature. The changes to the definition of "grocery staples" take effect on August 1, 2022.

Committee Categories

Budget and Finance

Sponsors (8)

Last Action

In possession of the Senate when the Legislature adjourned Sine Die and was placed in the Legislative Files. (DEAD) (on 05/09/2022)

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