An Act To Reduce the Meals and Lodging Tax
Maine Legislature, Session 123, LD 0207
Committee: Taxation
Sponsors: CRESSEY, PLOWMAN, ANNIS, AUSTIN, CEBRA, CROSTHW AITE, HAMPER, LANSLEY, RICHARDSON
Amends: 5 MRSA §13090-K, 36 MRSA §1811

Legislative Document 
No. 207 
H.P.178 
House of Representatives, January 16,2007 
An Act To Reduce the Meals and Lodging Tax 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative CRESSEY of Cornish. 
Cosponsored by Senator PLOWMAN of Penobscot and 
17/~ 
1I7.7I/dC~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: ANNIS of Dover-Foxcroft, AUSTIN of Gray, CEBRA of Naples, 
CROSTHW AITE of Ellsworth, HAMPER of Oxford, LANSLEY of Sabattus, McDONOUGH 
of Scarborough, RICHARDSON of Warren. 
Printed on recyded raper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 5 MRSA §13090-K, sub-§2, as enacted by PL 2001, c. 439, Pt. UUUU, 
§ 1, is amended to read: 
2. Source of fund. Beginning July I, 2003 and every July I st thereafter, the State 
Controller shall transfer to the Tourism Marketing Promotion Fund an amount, as 
certified by the State Tax Assessor, that is equivalent to 5% of the 7% tax imposed on 
tangible personal property and taxable services pursuant to Title 36, section 1811, for the 
first 6 months of the prior fiscal year after the reduction for the transfer to the Local 
Government Fund as described by Title 30-A, section 5681, subsection 5. Beginning on 
October I, 2003 and every October 1 st thereafter, the State Controller shall transfer to the 
Tourism Marketing Promotion Fund an amount, as certified by the State Tax Assessor, 
that is equivalent to 5% of the 7% tax imposed on tangible personal property and taxable 
services pursuant to Title 36, section 1811, for the last 6 months of the prior fiscal year 
after the reduction for the transfer to the Local Government Fund. Beginning October I, 
2007 and every October I st thereafter, the State Controller shall transfer to the Tourism 
Marketing Promotion Fund an amount, as certified by the State Tax Assessor, that is 
equivalent to 5% of the tax imposed pursuant to Title 36, section 1811 on the value of 
rental of living quarters in any hotel, rooming house or tourist or trailer camp and on the 
value of prepared food for the first 6 months of the prior fiscal year after the reduction for 
the transfer to the Local Government Fund. Beginning July 1, 2008 and every July 1st 
thereafter, the State Controller shall transfer to the Tourism Marketing Promotion Fund 
an amount, as certified by the State Tax Assessor, that is equivalent to 5% of the tax 
imposed pursuant to Title 36, section 1811 on the value of rental of living quarters in any 
hotel, rooming house or tourist or trailer camp and on the value of prepared food for the 
last 6 months of the prior fiscal year after the reduction for the transfer to the Local 
Government Fund. 
The tax amount must be based on actual sales for that fiscal year 
and may not consider any accruals that may be required by law. The amount transferred 
from General Fund sales and use tax revenues does not affect the calculation for the 
transfer to the Local Government Fund. 
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 28-A, section 2, subsection 15, in accordance with Title 
28-A, chapter 43; +% 5% 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 of less than one 
year of an automobile; +% 5% 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 reduces the taxes imposed on lodging and prepared meals from 7% to 5%. 
This bill also changes the allocation to the Tourism Marketing Promotion Fund, 
which currently receives 5% of the 7% tax imposed on lodging and prepared meals.