HP1136, LD 1645, item 1, An Act To Reduce the Rate of Tax Imposed on the Rental of Living Quarters

An Act To Reduce the Rate of Tax Imposed on the Rental of Living Quarters

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 OOOO, §1 and affected by §7, is repealed and the following enacted in its place: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 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.

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)

HP1136 LD 1645	Session - 128th Maine Legislature		LR 2406 Item 1
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