An Act To Authorize Options for Local Revenue Jn~ancement II
Maine Legislature, Session 126, LD 0427
Committee Amendment CA_A_H363 (House)

COMMITTEE AMENDMENT" {)." to H.P. 299, L.D. 427, Bill, "An Act To 
Authorize Options for Local Revenue Jn~ancement" 
II 
Amend the bill in section I in § 1817 by striking out all of subsection 2 (page I, lines 
to 14 in L.D.) and inserting the following: 
'2. Authorization to impose local option sales tax. A municipality by referendum 
conducted pursuant to subsection 8 may impose a local option sales tax of no more than 
% on those items that are part of the sales tax base, except for items that are excluded 
under subsection 3, and may limit the period of time the tax is imposed to specified 
months of the year. A municipality that adopts a local option sales tax pursuant to this 
section may not alter the range of items subject to sales taxation under this Part. 
3. Excluded items. A municipality may not impose a local option sales tax on 
aircraft, furniture as defined in section 2551, subsection 4, items used in production, 
machinery and equipment as defined in section 1752, subsection 7-B, motor vehicles, 
watercraft or major household appliances. For purposes of this section, "major household 
appliance" means a piece of equipment used for a specific function in the home purchased 
for more than $500 excluding tax.' 
Amend the bill in section 1 in § 1817 in subsection 8 in the question in the first line 
(page 2, line 13 in L.D.) by striking out the following: "5%" and inserting the following: 
'1%' 
Amend the bill in section 1 in § 1817 by inserting at the end the following: 
'10. Repeal. This section is repealed on December 31, 2016.' 
Amend the bill in section 1 in § 1817 to renumber the subsections to read 
consecutively. 
COMMITTEE AMENDMENT 
~o~s 
COMMITTEE AMENDMENT"~" to H.P. 299, L.D. 427 
SUMMARY 
This amendment, which is the minority report, limits the local option sales tax to 1 %, 
excludes certain items from the base on which a local option sales tax may be imposed 
and repeals the authorization for a local option sales tax on December 31, 2016. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
• 
Approved: OS/23/13 ;tvac 
LD427 
LR425(02) 
An Act To Authorize Options for Local Revenue Enhancement 
Fiscal Note for Bill as Amended by Committee Amendment 'B·(j/ ~ .3to~ 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
Potential current biennium cost increase - General Fund 
Allowing participating municipalities to impose a local option sales tax of up to 1 % of the purchase price of eligible 
items upon approval of the local option sales tax by local referendum wiII require Maine Revenue Services to 
determine the applicable tax revenue attributable to each municipality. Additional administrative costs associated 
with this determination will be paid for from local option sales tax revenue collected unless the allowable 
adminstrative costs are greater than 2% of the total local option sales tax revenue generated, in which case a General 
Fund appropriation would be required to cover excess administrative expense. Maine Revenue Services anticipates 
that the costs to establish a new computer program to account for the local option sales tax collection and 
disbursement would be in the vicinity of $1,400,000. 
LR0425(02) - Fiscal Note - Page 1 of 1