An Act To Establish a Sales Tax Holiday for Purchases Made during the Month of January
Maine Legislature, Session 126, LD 0318
Committee Amendment CA_A_H41 (House)
Amends: 36 MRSA §1760

COMMITTEE AMENDMENT "A" to H.P. 227, L.D. 318, Bill, "An Act To 
Establish a Sales Tax Holiday for Purchases Made during the Month of January" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Designate a Sales Tax Holiday' 
Amend the bill by striking out all of section 1 and inserting the following: 
'Sec. 1. 36 MRSA §1760, sub-§95 is enacted to read: 
95. Sales tax holiday. Sales on the fourth Saturday in August 2014 of clothing and 
school supplies, excluding sales of individual items of clothing with a price that exceeds 
$200, sales of individual items of school supplies with a price that exceeds $100 and 
clothing or school supplies that are transferred through a prior sale or layaway sale. 
For the purposes of this subsection, "clothing" means apparel meant to be worn by 
humans, including belts, caps, coats, dresses, gloves, hats, hosiery, jackets, neckties, 
pants, scarves, school uniforms, shirts, shoes, socks, sneakers and underwear, and 
excludes clothing accessories, protective equipment, sports equipment and recreational 
equipment. For the purposes of this subsection, "school supplies" means binders, book 
bags, backpacks, calculators, chalk, crayons, erasers, folders, glue, lunch boxes, 
notebooks, paper, pens, pencils, rulers, scissors, tape, clay, paints, paintbrushes, drawing 
pads and watercolors, and excludes computers, computer software, disks and printers. 
The State Tax Assessor shall adopt rules further defining clothing and school supplies. 
Rules adopted pursuant to this subsection are routine technical rules as defined in the 
Maine Revised Statutes, Title 5, chapter 375, subchapter 2-A. 
This subsection is repealed September 1, 2015. 
Sec. 2. Report. By December 31, 2014, the Department of Administrative and 
Financial Services, Bureau of Revenue Services shall report to the joint standing 
committee of the Legislature having jurisdiction over taxation matters the estimated 
impact of the sales tax holiday pursuant to the Maine Revised Statutes, Title 36, section 
1760, subsection 95 and recommendations for an annual sales tax holiday beginning in 
COMMITTEE AMENDMENT 
.~.~ 
.~",O- 1 
COMMITTEE AMENDMENT "A" to H.P. 227, L.D. 318 
2015. The joint standing committee may submit a bill pertaining to the report to the First 
Regular Session of the 127th Legislature.' 
'Sec. 3. Appropriations and allocations. 
The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Revenue Services, Bureau of 0002 
Initiative: Provides a one-time General Fund appropriation to the Bureau of Revenue 
Services for sales tax reporting requirements related to a sales tax holiday on August 23, 
2014. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2013-14 
$0 
$0 
2014-15 
$150,000 
$150,000 
SUMMARY 
This amendment replaces the bill and creates a one-time sales tax holiday on August 
23, 2014, exempting from sales tax the purchase of individual items of clothing costing 
$200 or less and individual items of schools suppJies costing $100 or less. It requires the 
Department of Administrative and Financial Services, Maine Revenue Services to report 
to the joint standing committee of the Legisiature having jurisdiction over taxation 
matters the estimated impact of the sales tax holiday and recommendations for an annual 
sales tax holiday beginning in 2015. It authorizes the joint standing committee to submit 
a bill pertaining to the report to the First Regular Session of the 127th Legislature. 
FISCAL NOTE REQUIRED 
(See attac~ed) 
COMMITTEE AMENDMENT 
Approved: 03/22/13 frac 
LD318 
LR 924(02) 
An Act To Establish a Sales Tax Holiday for Purchases Made during the Month of January 
Fiscal Note for Bill as Amended by Committee Amendment 'A' (-H -Lf I) 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2013-14 
FY 2014-15 
Projections 
FY 2015-16 
Projections 
FY 2016-17 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
$0 
$0 
$0 
$0 
$3,665,000 
$150,000 
($3,515,000) 
($185,000) 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
$0 
Exempting purchases of individual clothing items costing $200 or less and individual school supplies costing $100 or 
less made on August 23, 2014 from the sales tax reduces General Fund revenue by $3,515,000 and Municipal 
Revenue Sharing by $185,000 in FY 2014-15. This bill includes a one-time General Fund appropriation to Maine 
Revenue Services in fiscal year 2014-15 for sales tax reporting requirements. 
LR0924(02) - Fiscal Note - Page 1 of 1