Bill > LD1641

This bill allows municipalities in Maine to implement a local option sales tax of up to 0.5% on goods and services that are already taxable at the state level, through a municipal referendum held on the first Tuesday in November. The referendum must specify the intended use of the tax revenue, and if approved, the sales tax would be imposed year-round. This means that individual towns or cities could vote to add a small additional sales tax to generate local revenue for specific purposes, such as infrastructure improvements, local services, or community projects. The proposed tax would be limited to a maximum of half a percent and would only be applied to items already subject to state sales tax. Importantly, the tax can only be implemented through a direct vote by the municipality's residents, ensuring local democratic input on the decision to impose an additional tax.

Budget and Finance

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1641&snum=132