An Act To Allow Municipalities To Implement A Local Option Sales Tax

LD 1641 would allow Maine municipalities to impose a local sales tax of up to 0.5% on goods and services already subject to state sales tax. To adopt the tax, a municipality must hold a voter referendum on the first Tuesday in November, with the ballot requiring a description of how the tax revenue will be used. The tax would apply year-round, not seasonally, and would be in addition to existing state sales tax rates. This bill provides communities with a new tool to generate local revenue for specific projects, without changing the statewide tax structure.