An Act to Authorize a
Maine Legislature, Session 132, LD 0746
Committee Amendment CA_A_H774 (House)

COMMITTEE AMENDMENT "/Jr" to H.P. 488, L.D. 746, "An Act to Authorize a 
Local Option Sales Tax on Short-tetm Lodging to Fund Municipalities and Affordable 
Housing" 
Amend the bill in section 1 in § 1822 by striking out all of subsection 2 (page 1, lines 9 
to 12 in L.D.) and inserting the following: 
12. Authorization to impose local option sales tax. A municipality by refet·endum 
conducted pursuant to subsection 8 may impose a local option sales tax of 2% on the value 
of rental of living qua1ters in any hotel, rooming house and tourist and trailer camp, 
including casual rentals. 
A. A local option sales tax may not be imposed in the unorganized tenito1y. 
B, A local option sales tax may be imposed only on a year-round basis. A municipality 
may not adopt a seasonal or patt-year local option sales tax.' 
Amend the bill in section 1 in § 1822 in subsection 3 in the last line (page 1, line 15 in 
L.D.) by striking out the following: 
11section
and insetting the following: 'sections 1764 
and' 
Amend the bill in section 1 in § 1822 in subsection 3 in the last line (page 1, line 15 in 
L.D.) by inserting after the following: 
111811.
the following: 'A taxpayer who reports sales 
tax collected on casual rentals on that taxpayer's individual income tax return pursuant to 
section 1951-A, subsection 3 is not required to collect and remit local option sales tax.' 
Amend the bill in section 1 in § 1822 in subsection 5 in the last line (page 1, line 22 in 
L,D,) by striking out the following: 
11Part.
and insetting the following: 1Pa1t, and sourcing 
determinations must be made pursuant to section 1819.' 
Amend the bill in section 1 in § 1822 in subsection 9 in the 3rd line (page 2, line 16 in 
L.D.) by striking out the following: 
11.2_
and inserting the following: '~' 
Amend the bill in section 1 in § 1822 in subsection 9 in the last line (page 2, line 20 in 
L.D,) by striking out the following: 
112026
and insetting the following: 12027' 
COMMITTEE AMENDMENT 
ROS 
COMMITTEE AMENDMENT" It to H.P. 488, L.D. 746 
•I,,-••", 
Amend the bill by inserting after section 1 the following: 
'Sec, 2. Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Revenue Services, Bureau of 0002 
Initiative: Establishes one Tax Examiner I position to review and process local option sales 
tax filings effective October 1, 2025. 
GENERAL FUND 
2025-26 
2026-27 
POSITIONS - LEGISLATIVE COUNT 
1.000 
1.000 
Personal Services 
$112,353 
$148,341 
All Other 
$10,000 
$10,000 
GENERAL FUND TOTAL 
$122,353 
$158,341 
Revenue Services, Bureau of 0002 
Initiative: Provides funding for computer programming costs, 
GENERAL FUND 
2025-26 
2026-27 
All Other 
$815,574 
$540,654 
GENERAL FUND TOTAL 
$815,574 
$540,654 
ADMINISTRATIVE AND FINANCIAL 
SERVICES, DEPARTMENT OF 
DEPARTMENT TOTALS 
2025-26 
2026-27 
GENERAL FUND 
$937,927 
$698,995 
DEPARTMENT TOTAL-ALL FUNDS 
$937,927 
$698,995 
HOUSING AUTHORITY, MAINE STATE 
Housing Authority - State 0442 
Initiative: Allocates funds for the rural affordable rental housing program or another 
program that supports the development of affordable housing in rural communities from 
revenue received from the local option sales tax. 
OTHER SPECIAL REVENUE FUNDS 
2025-26 
2026-27 
All Other 
$0 
$326,000 
OTHER SPECIAL REVENUE FUNDS TOTAL 
$0 
$326,000 
HOUSING AUTHORITY, MAINE STATE 
DEPARTMENT TOTALS 
2025-26 
2026-27 
OTHER SPECIAL REVENUE FUNDS 
$0 
$326,000 
COMMITTEE AMENDMENT 
ROS 
~ 
.,,. -,4 .. ..-d 
COMMITTEE AMENDMENT" A• to H.P. 488, L.D. 746 
DEPARTMENTTOTAL-ALLFUNDS 
SECTION TOTALS 
GENERAL FUND 
I 
OTHER SPECIAL REVENUE FUNDS 
SECTION TOTAL - ALL FUNDS 
$0 
2025-26 
$937,927 
$0 
$937,927 
$326,000 
2026-27 
$698,995 
$326,000 
$1,024,995 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section 
number to read consecutively. 
SUMMARY 
This amendment prohibits a seasonal local option sales tax and specifies that casual 
rentals are subject to the tax. 
The amendment delays the earliest allowed start date for a local option sales tax by one 
year to January 1, 2027 and conforms the sourcing of the rental payments to the Maine 
Revised Statutes, Title 36, section 1819. 
The amendment allows taxpayers who report sales tax collected from casual rentals on 
their individual income tax returns to not collect and remit the local option sales tax. 
The amendment adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
• 
Revised: 06/13/25 LRL 
LD746 
LR 826(02) 
An Act to Authorize a Local Option Sales Tax on Short-term Lodging to Fund Municipalities and 
Affordable Housing 
Fiscal Note for Bill as Amended by Committee Amendment A (H-7?'-{\ 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Other Special Revenue Funds 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Committee: Taxation 
/ 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2025-26 
$937,927 
$937,927 
$0 
$0 
$0 
FY 2026-27 
$826,995 
$698,995 
$326,000 
($128,000) 
$4,821,000 
Projections 
FY 2027-28 
$545,341 
$148,341 
$2,131,000 
($397,000) 
$20,829,000 
Projections 
FY2028-29 
$524,341 
$148,341 
$2,178,00" 
($376,000) 
$21,320,000 
This bill allows municipalities to impose a local option sales tax of two percent on lodging rentals that are subject to 
the state sales tax if approved by referendum of the voters in that municipality. Ten percent of the revenue from the 
local option sales tax must be transferred to the Maine State Housing Authority. The cost of administering the local 
option sales tax is retained in the General Fund and the balance is distributed to municipalities imposing the local 
option sales tax. The bill includes a revenue decrease to the General Fund of $128,000 in fiscal year 2026-27 and a 
revenue decrease to the Local Government Fund of $7,000 in fiscal year 2026-27. The bill also includes transfers to 
the Maine State Housing Authority of $326,000 and to participating municipalities of $4,502,000 in fiscal year 2026-
27. 
Additionally, the bill includes General Fund appropriations of $937,927 in fiscal year 2025-26 and $698,995 in fiscal 
year 2026-27 to the Bureau of Revenue Services within the Department of Administrative and Financial Services to 
establish one Tax Examiner I position to review and process local option sales tax filings effective as well as to fund 
computer programming costs associated with the provisions of this bill. 
The bill also includes an Other Special Revenue Funds allocation of $326,000 in fiscal year 2026-27 to the Maine 
State Housing Authority to authorize the expenditure of fund received from the local option sales tax for the rural 
affordable rental housing program and for another program that supports the development of affordable housing in 
rural communities. 
LR0826(02) - Fiscal Note - Page 1 of 1