Bill > LD1807

This bill expands the sales tax to include several new luxury services and adjusts the sales tax rate on automobile rentals. Specifically, the bill creates a new definition of "taxable services" that now includes rental of limousines or luxury cars, charter of private aircraft or helicopters, charter of watercraft over 25 feet, and several other existing services. The bill also changes the sales tax rate on short-term automobile rentals from 10% to 15%, effective January 1, 2026, and eliminates the previous tax exemption for loaner vehicles provided by car dealerships. Additionally, the bill repeals an existing exemption for loaner vehicles, meaning that such rentals will now be subject to the new 15% tax rate. The new provisions will apply to sales occurring on or after January 1, 2026, giving businesses and consumers time to prepare for the changes. The expanded definition of taxable services and the increased rental car tax rate are designed to generate additional revenue for the state by capturing taxes on high-end services and increasing the tax burden on short-term vehicle rentals.

Budget and Finance

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1807&snum=132