An Act To Increase Funding for Multimodal Transportation
Maine Legislature, Session 129, LD 0839
Committee: Taxation
Sponsors: CLOUTIER, CHIPMAN, DENK, HANDY, HARNETT, SKOLFIELD, SYLVESTER, TERRY, TIPPING, LIBBY
Amends: 36 MRSA §1811

Legislative Document
No. 839
H.P. 613
House of Representatives, February 14, 2019
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 CLOUTIER of Lewiston.
Cosponsored by Senator CHIPMAN of Cumberland and
Representatives: DENK of Kennebunk, HANDY of Lewiston, HARNETT of Gardiner, 
SKOLFIELD of Weld, SYLVESTER of Portland, TERRY of Gorham, TIPPING of Orono, 
Senator: LIBBY of Androscoggin.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §1811, first ¶, as amended by PL 2017, c. 409, Pt. D, §2, 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 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, except that, beginning October 1, 2019, 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.  Notwithstanding the other provisions of this section, beginning on the first day 
of the calendar month in which adult use marijuana and adult use marijuana products may 
be sold in the State by a marijuana establishment licensed to conduct retail sales pursuant 
to Title 28-B, chapter 1, the rate of tax is 10% on the value of adult use marijuana and 
adult use marijuana products.  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, 2019.