An Act To Cut Taxes on Maine Residents by over $140,000,000
Maine Legislature, Session 123, LD 1925
House Amendment HA_H_H621 (House)
Amends: 36 MRSA §1752, 36 MRSA §1811

HOUSE AMENDMENT" If., to H.P. 1362, L.D. 1925, Bill, "An Act To Cut Taxes 
on Maine Residents by over $140,000,000" 
Amend the bilI by striking out the title and substituting the following: 
'An Act To Reduce the Sales Tax' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 36 MRSA §1752, sub-§l-I is enacted to read: 
1-1. 
Amusement, entertainment and recreation services. 
"Amusement, 
entertainment and recreation services" includes but is not limited to the following 
services, except those services provided by a governmental entity or an incorporated 
nonprofit organization: admission to entertainment venues and performances, including 
theaters, movies, lectures, concerts, amusement parks, water parks, fairgrounds, race 
tracks, carnivals, circuses, sports activities, stadiums, amphitheaters, museums, 
planetariums, animal parks, petting zoos, aquariums, historical sites, state parks and 
convention centers; fees charged for participation in or entry to golf courses, miniature 
golf courses, ski areas, bowling alleys, swimming pools, skating rinks, billiard parlors, 
gymnasiums, go-cart courses, tennis and racquetball courts and paintball; admission fees 
charged for exhibition shows such as auto, boat, camping, home, garden, animal and 
antique shows; scenic and sightseeing excursions including whitewater rafting, guided 
recreation, but excluding guided recreation services on federalIy navigable waters, and 
aircraft, helicopter, balloon, blimp, watercraft, railroad, bus, trolley and wagon rides; 
lessons and training in such areas as music, sports, dance, martial arts, gymnastics, 
physical fitness, art and crafts; entertainment services such as those provided by bands, 
orchestras, disc jockeys, comedians, clowns, jugglers, children's entertainers and 
ventriloquists; proceeds from arcade games; and fees paid to for-profit recreation and 
vacation camps for tuition and recreation services. 
Sec. 2. 36 MRSA §1752, sub-§17-B, as enacted by PL 2003, c. 673, Pt. Y, §19 
and affected by §29, is amended to read: 
HOUSE AMENDMENT 
.,"0, 
~ 
HOUSE AMENDMENT "If" to H.P. 1362, L.D. 1925 
17-B. Taxable service. "Taxable service" means the rental of living quarters in a 
hotel, rooming house, tourist or trailer camp; the transmission and distribution of 
electricity; the rental or lease of an automobile; and the sale of prepaid calling service; 
and amusement, entertainment and recreation services. 
Sec. 3. 36 MRS A §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; +% 4% 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; +% 4% on the value of prepared food; and ~ 
4% on the value of 
all other tangible personal property and taxable services. Value is measured by the sale 
price, except as otherwise provided. 
Sec. 4. 36 MRSA §1811, 3rd " as repealed and replaced by PL 2003, c. 510, Pt. 
C, § 12 and affected by § 13, is amended to read: 
Rental or lease of an automobile for one year or more must be taxed at the time of the 
lease or rental transaction at ~ 
4% of the following: the total monthly lease payment 
mUltiplied by the number of payments in the lease or rental, the amount of equity 
involved in any trade-in and the value of any cash down payment. 
Collection and 
remittance of the tax is the responsibility of the person that negotiates the lease 
transaction with the lessee. 
Sec. 5. Appropriations and allocations. The following appropriations and 
allocations are made. 
ECONOMIC AND COMMUNITY DEVELOPMENT, DEPARTMENT OF 
Office of Tourism 0577 
Initiative: Deallocates funds to the Tourism Marketing Promotion Fund due to the 
decrease in certain sales tax revenue. 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
2007-08 
$0 
2008-09 
($1,204,091 ) 
$0 
($1,204,091) 
HOUSE AMENDMENT 
HOUSE AMENDMENT "If, to H.P. 1362, L.D. 1925 
SUMMARY 
This amendment reduces the sales tax on tangible personal property and taxable 
services to 4%. It also reduces the sales tax on lodging and prepared food to 4%. It 
imposes a 4% tax on amusement, entertainment and recreation services. 
It also adds an appropriations and allocations section to the bill. 
SPONSOREDBY: __ ~~~~~~~ 
________ __ 
(Representative VA 
TOWN: Durham 
HOUSE AMENDMENT 
Approved: 06119/07 
~aC!. 
LD 1925 
LR 2657(14) 
An Act To Cut Taxes on Maine Residents by over $140,000,000 
Fiscal Note for House Amendment "t.. 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Other Special Revenue Funds 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Sponsor: Rep. Vaughan of Durham 
Fiscal Note Required: Yes 
Fiscal Note 
2007-08 
2008-09 
Projections 
2009-10 
Projections 
2010-11 
$89,567,735 
$231,553,407 
$216,863,967 
$221,631,597 
($1,095,164) 
$0 
($33,203,556) 
($1,204,091 ) 
($33,430,184) 
($3,875,298) 
($34,039,339) 
($3,916,289) 
($90,662,899) ($264,756,963) ($250,294,151) ($255,670,936) 
($3,537,455) 
($13,793,300) 
($19,343,021) 
($19,877,294) 
This amendment increases the General Fund cost of the bill by $89,567,735 in fiscal year 2007-08 and $231,553,407 
in fiscal year 2008-09. 
LR2657(l4) - Fiscal Note - Pa!!e 1 of 1