An Act To Clarify the Taxable Status of Processing Fees Charged in Connection with Cancelled Lodging Reservations Net Cost (Savings) General Fund Revenue General Fund
Maine Legislature, Session 122, LD 1749
Committee Amendment CA_A_S530 (Senate)
Amends: 36 MRSA §1752

COMMITTEE AMENDMENT "A" to S.P. 666, L.D. 1749, Bill, "An 
Act To Clarify the Taxable Status of Processing Fees Charged in 
Connection with Cancelled Lodging Reservations" 
Amend the bill by striking out everything after the enacting 
clause and before the summary and inserting in its place the 
following: 
. Sec. 1. 36 MRSA §1752, sub-§14, 1fB, as amended by PL 2003, c. 
673, Pt. V, §16 and affected by §29, is further amended to read: 
B. 
"Sale price" does not include: 
(1) 
Discounts allowed and taken on sales; 
(2) 
Allowances in cash or by credit made upon the 
return of merchandise pursuant to warranty; 
(3) 
The price of property returned by customers, when 
the full price is refunded either in cash or by credit; 
(4) 
The price received for labor or services used in 
installing or applying or repairing the property sold, 
if separately charged or stated; 
(5) 
Any amount charged or collected, in lieu of a 
gratuity or tip, 
as 
a 
specifically stated service 
charge, when that amount is to be disbursed by a hotel, 
motel, restaurant or other eating establishment to its 
employees as wages; 
Page l-LR2802(2) 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to S.P. 666, L.D. 1749 
(6) 
The amount of any tax imposed by the United States 
on or with respect to retail sales, whether imposed 
upon 
the 
retailer 
or 
the 
consumer, 
except 
any 
manufacturers', importers', alcohol or tobacco excise 
tax; 
(7) 
The cost of transportation from the retailer's 
place of business or other point from which shipment is 
made directly to the purchaser, provided that those 
charges are separately stated and the transportation 
occurs by means of common carrier, contract carrier or 
the United States mail; 
(8) 
The 
fee 
imposed 
by 
Title 
10, 
section 
1169, 
subsection 11; 
(9) 
The fee imposed by section 4832, subsection 1; e~ 
(10) 
The lead-acid battery deposit imposed by Title 
38, section 1604, subsection 2-BTL-QI 
(11) 
Any 
amount 
charged or collected by 
a 
person 
engaged in the rental of living quarters as a forfeited 
room deposit or cancellation fee if the prospective 
occupant of the living quarters cancels the reservation 
on or before the scheduled date of arrival. 
Sec. 2. Retroactivity; application. 
This Act applies to amounts 
charged or collected as forfeited deposits or cancellation fees 
on or after January L 
2001 except that a person who has paid 
sales tax on forfeited deposits or cancellation fees on or after 
January 1, 2001 but prior to the effective date of this Act is 
not entitled to a refund of the sales tax paid as a result of the 
operation of this Act. 
A person who has collected sales tax on 
forfeited deposits or cancellation fees on or after January l, 
2001 
shall remit the 
tax as 
required by the 
Maine 
Revised 
Statutes, Title 36, chapter 219.' 
SUMMARY 
This 
amendment clarifies the taxable status of forfeited 
deposits and cancellation fees for rental of living quarters 
under the sales tax by providing that those deposits or fees are 
not subject to sales tax if the rental is cancelled on or before 
the 
scheduled 
date 
of 
arrival. 
The 
amendment 
makes 
this 
clarification retroactive to January 1, 2001 and provides that a 
person who has paid or collected sales tax on forfeited deposits 
or cancellation fees is not entitled to a refund. 
FISCAL :\OTE REQURED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03/27/06 frac 
LD 1749 
LR 2802(02) 
An Act To Clarify the Taxable Status of Processing Fees Charged in Connection with Cancelled 
Lodging Reservations 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
Fiscal Note for Bill as Amended by Committee Amendment ''A" 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
2005-06 
$0 
2006-07 
$9,490 
Projections 
2007-08 
$4,740 
Other Special Revenue Funds 
$0 
$0 
($9,490) 
($510) 
($4,740) 
($260) 
Fiscal Detail and Notes 
Projections 
2008-09 
$5,925 
($5,925) 
($325) 
The General Fund revenue loss associated with a sales tax exemption for forfeited room deposits is estimated to be 
$9,490 in fiscal year 2006-07. 
LR2802(2) ~ Fiscal Note - Page 1 of 1