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ME LD908

ME LD908
An Act to Eliminate the Sales Tax on Prepared Foods and Support the State's Hospitality Industry


summary

Introduced
03/05/2025
In Committee
03/05/2025
Crossed Over
Passed
Dead
04/15/2025

Introduced Session

132nd Legislature

Bill Summary

This bill is a concept draft pursuant to Joint Rule 208. This bill proposes to eliminate the 8% sales tax on all prepared foods, including meals served in restaurants, for the purpose of boosting economic activity by making dining out more affordable. The Department of Economic and Community Development would be required to initiate an advertising campaign to encourage tourism in Maine and promote dining establishments as tax-free, with the exception of alcoholic beverages. The loss of revenue from the repeal of the sales tax on prepared foods would be offset in a number of ways, including: 1. Broadening the items subject to sales tax and increasing the rate of the sales tax on certain high-end luxury items, such as bicycles, boating gear and other recreational equipment; high-end electronics, such as smartphones and laptops; and elective medical procedures that are not medically necessary; 2. Performing an assessment of sales tax exemptions on nonessential goods and services to ensure that only those exemptions that are intended to provide a fair system of taxation are retained; and 3. Conducting a comprehensive audit of state government programs and expenditures to eliminate inefficiencies and waste.

AI Summary

This bill proposes to eliminate the 8% sales tax on prepared foods, such as restaurant meals, with the aim of making dining out more affordable and stimulating economic activity in the state's hospitality industry. To offset the anticipated revenue loss, the bill suggests several strategies: broadening the sales tax base by applying taxes to luxury items like high-end bicycles, boating equipment, recreational gear, electronics, and elective medical procedures; conducting a comprehensive review of existing sales tax exemptions to ensure they contribute to a fair taxation system; and performing a thorough audit of state government programs to identify and eliminate inefficiencies and wasteful spending. Additionally, the bill would require the Department of Economic and Community Development to launch an advertising campaign promoting Maine's new tax-free dining environment, with the goal of attracting tourists and supporting local restaurants. The tax exemption would apply to prepared foods but would not cover alcoholic beverages, which would remain subject to taxation.

Committee Categories

Budget and Finance

Sponsors (7)

Last Action

Ought Not to Pass Pursuant To Joint Rule 310, Apr 15, 2025 (on 04/15/2025)

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