summary
Introduced
04/08/2025
04/08/2025
In Committee
04/08/2025
04/08/2025
Crossed Over
Passed
Dead
06/09/2025
06/09/2025
Introduced Session
132nd Legislature
Bill Summary
This bill phases out the tax imposed on the sale of tangible personal property, products transferred electronically and taxable services by reducing the tax rate by 1/2 of a percentage point every 2 years, beginning January 1, 2026, until the rate is 0% for each category of tangible personal property, products transferred electronically or taxable service subject to sales tax. Since use taxes are based on the sales tax rate, use tax rates will also be decreased a commensurate amount. The bill also requires the State Tax Assessor, the month before a decrease is scheduled to take effect, to publish on the bureau's publicly accessible website the new rates and to submit a bill to the joint standing committee of the Legislature having jurisdiction over taxation matters making the statutory changes necessitated by the decreased rates.
AI Summary
This bill phases out the sales and use tax in Maine by systematically reducing tax rates for tangible personal property, electronically transferred products, and taxable services. Starting on January 1, 2026, the tax rates for each category will decrease by half a percentage point every two years until they reach 0%. The State Tax Assessor is required to publish the new reduced rates on the bureau's website each December, one month before the rate changes take effect. Additionally, the Tax Assessor must submit a bill to the legislative committee responsible for taxation, detailing the rate reductions and any necessary statutory modifications. This gradual approach allows for a controlled and predictable elimination of sales taxes, giving businesses and the state time to adapt to the changing tax structure. By providing advance notice and requiring legislative updates, the bill ensures transparency and allows for ongoing legislative oversight of the tax phase-out process.
Committee Categories
Budget and Finance
Sponsors (5)
Last Action
Accepted Majority (ONTP) Report, Jun 9, 2025 (on 06/09/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1505&snum=132 |
| Fiscal Note: Text | https://legislature.maine.gov/legis/bills/bills_132nd/fiscalpdfs/FN150501.pdf |
| BillText | https://legislature.maine.gov/legis/bills/getPDF.asp?paper=HP0989&item=1&snum=132 |
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