An Act To Reduce the Rate of Tax Imposed on the Rental of Living Quarters
Maine Legislature, Session 128, LD 1645
Committee: Taxation
Sponsors: WINSOR
Amends: 5 MRSA §13090-K, 36 MRSA §1811-C

Legislative Document
No. 1645
H.P. 1136
House of Representatives, July 20, 2017
An Act To Reduce the Rate of Tax Imposed on the Rental of Living 
Quarters
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative WINSOR of Norway.  (GOVERNOR'S BILL)
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 2015, c. 267, Pt. OOOO, 
§1 and affected by §7, is repealed and the following enacted in its place: 
2.  Source of fund.  Transfers to the Tourism Marketing Promotion Fund must be 
made according to this subsection. 
A.  By October 1st annually, beginning in 2013 and ending in 2017, 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 imposed on 
tangible personal property and 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 as described by Title 30-A, section 5681, subsection 5. 
B.  By July 1st annually, beginning in 2014 and ending in 2017, 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 imposed on tangible 
personal property and taxable services pursuant to Title 36, section 1811 for the first 
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. 
C.  On July 1, 2018, 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 imposed on tangible personal property and taxable services for 
the first 6 months of the prior fiscal year plus 5% of the 9% tax imposed on the rental 
of living quarters from July 1, 2017 to October 31, 2017 and 5% of the tax imposed 
on the rental of living quarters from November 1, 2017 to December 31, 2017 
pursuant to Title 36, section 1811 after the reduction for the transfer to the Local 
Government Fund as described by Title 30-A, section 5681, subsection 5. 
D.  By October 1st annually, beginning in 2018, 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 imposed on tangible personal 
property and taxable services and 5% of the tax imposed on the rental of living 
quarters 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 as described 
by Title 30-A, section 5681, subsection 5. 
E.  By July 1st annually, beginning in 2019, 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 imposed on tangible personal 
property and taxable services and 5% of the tax imposed on the rental of living 
quarters 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. 
The tax amounts specified in this subsection 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-C is enacted to read: 
§1811-C.  Lodging tax decrease 
Notwithstanding any other provision of this Part, effective November 1, 2017, the tax 
imposed on the value of rental of living quarters in any hotel, rooming house or tourist or 
trailer camp pursuant to section 1811 is reduced by 1.5 percentage points. 
SUMMARY 
This bill provides that the tax imposed on the value of rental of living quarters in any 
hotel, rooming house or tourist or trailer camp is reduced by 1.5 percentage points on 
November 1, 2017. 
FISCAL NOTE REQUIRED 
(See attached) 
Approved: 07/03/17
LD 1645
LR 2406(01)
FY 2017-18
FY 2018-19
Projections 
FY 2019-20
Projections 
FY 2020-21
Net Cost (Savings)
General Fund
$4,447,110
$15,052,550
$15,169,824
$15,786,158
Revenue
General Fund
($4,447,110)
($15,052,550)
($15,169,824)
($15,786,158)
Other Special Revenue Funds
($90,757)
($562,450)
($1,077,576)
($1,096,138)
Fiscal Detail and Notes
Preliminary Fiscal Impact Statement
This bill decreases the sales tax rate on lodging by 1.5% effective 11-1-17 and would result in a reduction in General 
Fund revenue of $4,447,110 in fiscal year 2017-18 and $15,052,550 in fiscal year 2018-19 and a reduction in Local 
Government Fund revenue of $90,757 in fiscal year 2017-18 and $312,300 in fiscal year 2018-19.  It would also result 
in a reduction in Tourism Marketing Promotion Fund revenue of $250,150 in fiscal year 2018-19.
An Act To Reduce the Rate of Tax Imposed on the Rental of Living Quarters
Preliminary Fiscal Impact Statement for Original Bill
Sponsor: Rep. Winsor of Norway
Committee: Not Referred
Fiscal Note Required: Yes
LR2406(01) - Fiscal Note - Page 1 of 1