Bill > LD746

This bill allows municipalities in Maine to impose a 2% local sales tax on short-term lodging (such as hotels, rooming houses, and tourist camps) through a voter referendum process. If approved by voters, with voter turnout meeting at least 20% of the most recent gubernatorial election's total votes, the tax will take effect no earlier than January 1, 2026. Of the revenue generated, 10% will be transferred to the Maine State Housing Authority specifically to support rural affordable housing programs, while the remaining funds will be distributed to the municipality that imposed the tax. The bill includes provisions requiring municipalities to notify the State Tax Assessor at least 90 days before implementing the tax, and mandates that the tax be administered and enforced similarly to other state sales taxes. Importantly, the bill stipulates that this new revenue will not be considered in calculating existing state aid or revenue sharing formulas, ensuring it does not reduce other funding municipalities currently receive. Municipalities can also discontinue the tax through a similar referendum process, providing flexibility for local decision-making about this optional sales tax.

Budget and Finance

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=746&snum=132