An Act To Increase Funding for Multimodal Transportation
Maine Legislature, Session 128, LD 0116
Committee: Taxation
Sponsors: GOLDEN, GRANT, JORGENSEN, MIRAMANT
Amends: 36 MRSA §1811

Legislative Document
No. 116
H.P. 84
House of Representatives, January 17, 2017
An Act To Increase Funding for Multimodal Transportation
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative GOLDEN of Lewiston.
Cosponsored by Representatives: GRANT of Gardiner, JORGENSEN of Portland, Senator: 
MIRAMANT of Knox.
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §1811, first ¶, as amended by PL 2015, c. 267, Pt. OOOO, §5 
and affected by §7, is further 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% 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 December 
31, 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.  Notwithstanding the other provisions of this section, beginning January 1, 
2016, the rate of tax is 9% 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 and, 
beginning October 1, 2017, the rate of tax is 15% 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.  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. 
SUMMARY 
This bill increases the sales tax on short-term rentals of automobiles, small trucks and 
vans from 10% to 15% to provide funding for multimodal transportation.  The increase 
takes effect October 1, 2017.