An Act To Increase the Tax Imposed on Lodging
Maine Legislature, Session 122, LD 1019
Committee: Taxation
Sponsors: PILON, STRIMLING, ADAMS, BEAUDETTE, HARLOW, SULLIVAN
Amends: 30-A MRSA §5686

Legislative Document 
No. 1019 
H.P.703 
House of Representatives, February 24,2005 
An Act To Increase the Tax Imposed on Lodging 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative PILON of Saco. 
Cosponsored by Senator STRIMLING of Cumberland and 
/J1~ 
/J1·111(}£~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: ADAMS of Portland, BEAUDETTE of Biddeford, HARLOW of Portland, 
Senator: SULLIVAN of York. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. I. 30-A MRSA §5686 is enacted to read: 
§5686. 
Revenue sharing of lodging taxes 
1. 
LodgjD~ax 
Relie{~~d established. 
There 
is 
established the Lodging Tax Relief Fund, 
referred to in this 
section as "the fund," for the purpose of returning a portion of 
the revenue generated by lodging taxes to the municipalities in 
which those taxes were collected. 
As 
used in this section, 
"lodging tax" means the tax imposed pursuant to Title 36, section 
lS11 on the value of rental of living quarters in any hotel, 
rooming house or tourist or trailer camp. 
2. 
Amount of transfer: duties of Executive Director of 
Bureau of Revenue Services. 
Beginning October 1, 2005, on the 
last day of each month, the Executive Director of the Bureau of 
Revenue 
Services within the Department of Administrative 
and 
Finanical Services shall transfer to the fund an amount equal to 
30% of the receipts from the lodging tax credited to the General 
Fund. 
Beginning November 2005, on the 27th day of each month, 
the executive director shall distribute the balance in the fund 
to the municipalities based on the information provided by the 
State Tax Assessor pursuant to subsection 3. 
3. 
Duties of State Tax Assessor. 
Beginning November 2005, 
by the 25th day of each month, 
the State Tax Assessor shall 
calculate 
the 
amount 
of 
the 
lodging 
tax 
collected in each 
municipality and the amount to be returned to each municipality 
pursuant to subsection 2 
and provide the calculation to the 
Executive Director of the Bureau of Revenue Services within the 
Department of Administrative and Financial Services. 
4. 
Plantation and unorganized territoq. 
For purposes of 
this 
section, 
plantations 
and 
the 
unorganized territory are 
treated as if they were municipalities. 
5. 
Indian territory. 
For purposes of this section, the 
Passamaquoddy Tribe and the Penobscot Nation Indian territories 
are treated as if they were municipalities. 
Sec. 2. 36 MRSA § 1811, first" as amended by PL 2001, c . 439, 
Pt. TTTT, §2 and affected by §3, is further amended to read: 
A tax is imposed on the value of all tangible personal 
property and taxable services sold at retail in this State. 
The 
rate of tax is 7% 
on the value of liquor sold in licensed 
establishments as defined in Title 2S-A, section 2, subsection 
15, in accordance with Title 2S-A, chapter 43; 
1% 
10% on the 
value of rental of living quarters in any hotel, rooming house or 
tourist or trailer camp; 10% on the value of rental for a period 
Page l-LRI2S0(1) 
• 
of less than one year of an automobile: 
7% 
on the value of 
prepared food: and 5% on the value of all other tangible personal 
property and taxable services. 
Value is measured by the sale 
price, except as otherwise provided. 
SUMMARY 
This bill increases the lodging tax from 
7"-'0 to 10°'0. 
The 
bill also returns 30% of the sales tax imposed on lodging to the 
municipalities in which those taxes were levied .