An Act To Avoid Loss of Revenue to the State
Maine Legislature, Session 127, LD 0718
Committee: Taxation
Sponsors: CHIPMAN, LIBBY, BICKFORD, CHACE, GOODE, MOONEN, SKOLFIELD, STANLEY, SUKEFORTH, TEPLER
Amends: 5 MRSA §13090-K, 36 MRSA §1811

Legislative Document 
No. 718 
H.P. 494 
House of Representatives, March 5, 2015 
An Act To Avoid Loss of Revenue to the State 
(EMERGENCY) 
Reference to the Committee on Taxation suggested and ordered printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative CHIPMAN of Portland. 
Cosponsored by Senator LIBBY of Androscoggin and 
Representatives: BICKFORD of Auburn, CHACE of Durham, GOODE of Bangor, MOONEN 
of Portland, SKOLFIELD of Weld, STANLEY of Medway, SUKEFORTH of Appleton, 
TEPLER of Topsham. 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, the increase in the sales tax on lodging to 8% is scheduled to expire on 
July 1, 2015; and 
Whereas, it is necessary to maintain adequate revenue to the State to support needed 
expenditures; and 
Whereas, reducing the sales tax on lodging will result in the State's having 
insufficient revenue to support needed expenditures; and 
Whereas, it is necessary to avoid the reduction in the sales tax on lodging on July 
1st in order to avoid confusion for taxpayers and administrative burdens for both 
taxpayers and the State; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  5 MRSA §13090-K, sub-§2, as amended by PL 2013, c. 368, Pt. M, §1, is 
further amended to read: 
2.  Source of fund.  Beginning July 1, 2003 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 8% tax on the value of 
rental of living quarters in any hotel, rooming house or tourist or trailer camp and 5% of 
the 7% tax imposed on tangible personal property and other 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, except that, from October 1, 2013 to June 30, 2015, the amount is 
equivalent to 5% of the 8% tax imposed on tangible personal property and taxable 
services pursuant to Title 36, section 1811.  Beginning on October 1, 2003 and every 
October 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 8% tax on the value of rental of living quarters in any hotel, rooming house or 
tourist or trailer camp and 5% of the 7% tax imposed on tangible personal property and 
other 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, except that, 
from October 1, 2013 to June 30, 2015, the amount is equivalent to 5% of the 8% tax 
imposed on tangible personal property and taxable services pursuant to Title 36, section 
1811.  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 repealed and replaced by PL 2013, c. 588, Pt. 
E, §11, is amended to read: 
A tax is imposed on the value of all tangible personal property, products transferred 
electronically 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; 7% 8% 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, of a pickup truck or van with a 
gross vehicle weight of less than 26,000 pounds rented from a person primarily engaged 
in the business of renting automobiles or of a loaner vehicle that is provided other than to 
a motor vehicle dealer's service customers pursuant to a manufacturer’s or dealer’s 
warranty; 7% on the value of prepared food; and 5% on the value of all other tangible 
personal property and taxable services and products transferred electronically.  
Notwithstanding the other provisions of this section, from October 1, 2013 to June 30, 
2015, the rate of tax is 8% on the value of rental of living quarters in any hotel, rooming 
house or tourist or trailer camp; 8% on the value of prepared food; 8% 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; and 5.5% on the value of all other tangible 
personal property and taxable services and products transferred electronically.  Value is 
measured by the sale price, except as otherwise provided. The value of rental for a period 
of less than one year of an automobile or of a pickup truck or van with a gross vehicle 
weight of less than 26,000 pounds rented from a person primarily engaged in the business 
of renting automobiles is the total rental charged to the lessee and includes, but is not 
limited to, maintenance and service contracts, drop-off or pick-up fees, airport 
surcharges, mileage fees and any separately itemized charges on the rental agreement to 
recover the owner’s estimated costs of the charges imposed by government authority for 
title fees, inspection fees, local excise tax and agent fees on all vehicles in its rental fleet 
registered in the State.  All fees must be disclosed when an estimated quote is provided to 
the lessee. 
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect July 1, 2015. 
SUMMARY 
This bill continues the sales tax on lodging at 8% on and after July 1, 2015 in order to 
avoid the decrease to 7% scheduled under current law.