An Act To Allow the Creation of a Local Option Sales Tax by Referendum
Sec. 1. 36 MRSA §1817 is enacted to read:
§ 1817. Municipal local option sales tax
For purposes of this subsection, "costs of administering this section" means the lesser of the actual cost to the assessor of administering this section and 2% of the total revenue generated by municipalities that impose local option sales taxes.
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% to be imposed by [insert 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 section.
This bill allows a municipality to impose a local option sales tax, which may be seasonal, of no more than 1% by local referendum. Certain items, such as motor vehicles and major household appliances, are excluded from the local option sales tax.