An Act To Expand The Sales Tax To Luxury Services And Adjust The Sales Tax On Rental Cars

This bill expands Maine's sales tax to include new "luxury services" like limousine rentals, private aircraft charters, and watercraft rentals over 25 feet. It also increases the sales tax rate on short-term automobile rentals (less than one year) from 10% to 15%, effective January 1, 2026, and removes the previous exemption for dealership loaner vehicles. The changes directly affect businesses providing these services and consumers purchasing them, with tax rates now applying to all short-term car rentals except those under specific dealer warranty programs. The bill does not alter existing tax rates for hotels, prepared food, or cannabis sales.