An Act To Phase Out The Sales And Use Tax

LD 1505 phases out Maine's sales and use tax by gradually reducing the tax rate by 0.5 percentage points every two years, starting January 1, 2026, until the rate reaches 0% for all taxable categories. It directly affects businesses selling tangible goods, digital products, and taxable services, as well as consumers purchasing these items. The bill requires the State Tax Assessor to publish updated tax rates on a public website every two years before each reduction and submit legislative proposals to adjust tax laws accordingly. This process ensures transparency and administrative updates as the tax is eliminated over time.