Bill > LD632

This bill allows municipalities in Maine to impose a local 2% sales tax on short-term lodging (such as hotels, rooming houses, and tourist camps) if approved by local voter referendum. The bill provides detailed provisions for implementing and managing this tax, including specific definitions for terms like "affordable housing" and "lower income households." Once collected, 15% of the tax revenue would be transferred to the Maine State Housing Authority to support rural affordable housing development, with the remainder going directly to the municipality. Municipalities must use these funds exclusively for affordable housing programs or general assistance costs, and the funds cannot be used to reduce other state aid. The tax cannot take effect before January 1, 2026, and requires a voter referendum where at least 20% of the total votes cast in the most recent gubernatorial election participate, with a majority approving the tax. Importantly, the bill includes safeguards to ensure that this new revenue stream does not replace existing state funding to municipalities, thereby providing an additional resource for addressing local housing affordability challenges.

Budget and Finance

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=632&snum=132