An Act To Authorize a Local Option Sales Tax
Maine Legislature, Session 128, LD 1522
Committee Amendment CA_A_H279 (House)

COMMITTEE AMENDMENT "A "to H.P. 1046, L.D. 1522, Bill, "An Act To 
Authorize a Local Option Sales Tax" 
Amend the bill in section 1 in § 1818 by striking out all of sections 1 and 2 (page 1, 
lines 4 to 18 in L.D.) and inserting the following: 
11. 
Definitions. 
As used in this section, "participating municipality" means a 
municipality that has imposed a local option sales tax pursuant to this section. 
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 prepared food and the value of rental of living quarters in any hotel, rooming 
house or tourist or trailer camp and may limit the period of time the tax is imposed to 
specified months of the year as long as the months are consecutive.' 
Amend the bill in section 1 in § 1818 in subsection 5 in paragraph A in the first line 
(page 1, line 33 in L.D.) by striking out the following: 
1150%
and inserting the following: 
165%1 
Amend the bill in section 1 in § 1818 in subsection 5 in paragraph C in the 2nd line 
(page 1, line 37 in L.D.) by striking out the following: 
1125%
and inserting the following: 
110%
Amend the bill in section 1 in § 1818 by striking out all of subsection 6 (page 2, lines 
to 8 in L.D.) and inserting the following: 
16. 
Use of revenue by participating municipality. The revenue raised by the 
imposition of a local option sales tax under this section must be held by the pmticipating 
municipality in a special revenue account established for that purpose. Revenue from that 
account may be expended only if specifically authorized by an appropriation of the local 
legislative body.' 
Amend the bill in section 1 in §1818 by striking out all of subsection 8 (page 2, lines 
to 27 in L.D.) and inserting the following: 
COMMITTEE AMENDMENT 
Kl ot 8, 
COMMITTEE AMENDMENT«/\,, to H.P. 1046, L.D. 1522 
'8. Referendum. The question of whether to impose a local option sales tax must be 
submitted to the legal voters of a municipality that seeks to impose the local option sales 
tax. 
The petition process and voting must be held and conducted in accordance with Title 
30-A, sections 2528, 2529 and 2532 even if the municipality has not accepted the 
provisions of Title 30-A, section 2528. The voting at elections must be held and 
conducted in accordance with Title 21-A. The municipal clerk shall prepare the required 
ballots, which must contain substantially the following question: 
"Do you favor a local option sales tax of up to 1 % on prepared food and 
short-term lodging to be imposed by [inse1t name of municipality] for the 
months of [insert the names of the months] each year?" 
The voters shall indicate by a cross or check mark placed against the word "Yes" or "No" 
their opinion of the same. The municipal clerk shall make a return of the results, certify 
the results and send them to the Secretary of State. The Secretary of State shall forward 
the results to the assessor. 
The local option sales tax may be discontinued by referendum conducted in the same 
manner as the referendum adopting the local option sales tax under this subsection.' 
SUMMARY 
This amendment restricts the local option sales tax authorized by the bill to taxation 
of sales of prepared food and lodging, provides that the revenue must be placed in a 
special account to be expended only if specifically authorized by the local legislative 
body and changes the distribution of revenue from the local option sales tax by increasing 
from 50% to 65% the amount transferred to the participating municipality and reducing 
the amount transfe1Ted to the Regional Economic Development Revolving Loan Program 
from 25% to 10%. The amendment also changes the required referendum question to 
reflect the change in authorized use by a municipality of local option sales tax revenue 
funds. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Approved: 05/17/17 ~ae. 
LD 1522 
LR 569(02) 
An Act To Authorize a Local Option Sales Tax 
Fiscal Note for Bill as Amended by Committee Amendment •4• (I/~ d, 7'i) 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
Contingent current biennium cost increase - General Fund 
Contingent current biennium revenue increase - Local Government Fund 
Contingent current biennium revenue increase - Municipalities 
This bill allows a municipality to establish a local option sales tax if approved by referendum of the municipality's 
voters. If such a tax is established by a municipality, the Department of Administrative and Financial Services will 
need an initial General Fund appropriation of approximately $690,000 with annual General Fund appropriations 
thereafter of approximately $450,000 to establish, implement and maintain a system to track certain sales taxes by 
municipality. Revenue from this tax would be distributed to the municipality, to the Local Government Fund for 
revenue sharing statewide and to the Regional Economic Development Revolving Loan Program administered by the 
Finance Authority of Maine for distribution to counties for economic development purposes. 
LR0569(02) - Fiscal Note - Page 1 of 1