LD 746 allows Maine municipalities to impose a 2% local sales tax on short-term lodging (like hotels and vacation rentals) if approved by voters through a referendum. The tax must be applied only to lodging already subject to state sales tax, and requires voter approval with a majority vote and at least 20% turnout from the previous gubernatorial election. Ten percent of the revenue collected must fund Maine's affordable housing programs through the State Housing Authority, while the remaining 90% goes directly to the municipality that enacted the tax. The tax cannot be applied in unorganized territory and cannot take effect before January 1, 2026.
LD 1099 would remove sales tax on disposable and reusable diapers, including diaper covers, wraps, and fasteners, starting January 1, 2026. This exemption applies to diapers marketed for use by children or adults, including those designed for individuals with incontinence. The bill directly affects consumers who purchase diapers by eliminating the sales tax on these essential items, reducing their out-of-pocket cost. Retailers selling qualifying diaper products will no longer collect sales tax on these items beginning the effective date.
LD 1855 imposes a 60-cent-per-gallon excise tax on spirits-based cocktails containing 12% alcohol by volume or less. This tax applies to manufacturers and importing wholesale licensees selling these beverages within Maine. The bill defines "spirits-based cocktail" as an alcoholic drink made with spirits and containing no more than 12% alcohol by volume. The tax is collected monthly and is separate from existing excise taxes on other alcoholic products like beer or wine.
This bill exempts utility vehicles used in commercial fishing, farming, aquaculture, and logging from Maine's state sales tax when purchased for those specific business purposes. It defines "utility vehicle" as a self-propelled vehicle designed for transporting cargo (with 20-50 mph speed capability) used in agriculture, forestry, or similar commercial activities. The tax exemption applies to vehicles classified as "depreciable machinery and equipment" under Maine law, effective January 1, 2026. This directly affects commercial operators in these four sectors by reducing their upfront costs for qualifying vehicles.
This bill exempts certain over-the-counter (OTC) medicines from Maine's sales tax starting January 1, 2026. It applies to FDA-approved OTC medicines meeting specific labeling requirements, including antacids, contraceptive products, allergy medications, eye/ear/nose treatments, and opioid antagonists. The exemption covers medicines sold directly to consumers without a prescription, but excludes cannabis products. This change affects Maine residents purchasing these specific OTC health products, reducing their out-of-pocket costs for essential medications.
LD 1313 allows commercial wood haulers in Maine to qualify for sales tax exemptions or refunds when purchasing or leasing machinery and equipment used in transporting trees for the forest products industry. The bill amends Maine's tax code to explicitly include tree hauling within the definition of "commercial wood harvesting," ensuring haulers are covered under existing tax relief for qualifying equipment like trucks, semitrailers, and wood chippers. This change, effective January 1, 2026, directly benefits wood haulers operating in Maine's forest products sector by reducing their equipment costs.
This bill expands Maine's sales tax exemption to include more grocery items, making them tax-free when purchased at grocery stores. It defines "grocery staples" to cover bread, condiments, fruit bars, granola bars, pretzels, cheese sticks, nuts, seeds, meat sticks, sandwiches, and salads, while excluding alcohol, water, medicine, candy (except for certain fruit-based snacks like fruit bars), desserts, and cannabis. The exemption applies only to items sold in grocery stores (including convenience stores) but not in separate dining areas within stores. Effective January 1, 2026, this change aims to lower household costs for eligible food purchases.
LD 1419 increases the sales tax exemption for new manufactured housing (off-site construction) from 50% to 75% of the sale price, excluding materials. This aligns the tax treatment for off-site manufactured housing with on-site construction, which already received a 75% exemption. The change applies to sales occurring on or after January 1, 2026, directly reducing sales tax costs for buyers and manufacturers of manufactured housing.
