130th MAINE LEGISLATURE
		LD 1342		LR 559(02)
	An Act To Authorize a Local Option Sales Tax on Lodging and Other Goods and Provide Funding for Tax Abatement and Rental Relief
	Fiscal Note for Bill as Amended by Committee Amendment " "
	Committee: Taxation
	Fiscal Note Required: Yes
Fiscal Note
Contingent current biennium cost increase - General Fund Contingent future biennium revenue increase - General Fund Contingent future biennium revenue increase - Municipalities Contingent future biennium revenue increase - Maine State Housing Authority
Fiscal Detail and Notes
	All of the impacts described below are contingent on at least one municipality voting to impose a local sales tax.
	This bill creates a local option sales tax of 1% on lodging and prepared food effective July 1, 2023.  Municipalities can opt to impose this tax through a municipal referendum.  Revenues will be distributed 90% to participating municipalities and 10% to the Maine State Housing Authority.  The Department of Administrative and Financial Services (DAFS) will be allowed to retain 2% for administration.  If all municipalities impose this tax, annual revenues to municipalities, the Maine State Housing Authority and DAFS will be approximately $40.4 million, $4.5 million and $.9 milion respectively.  DAFS has indicated it will require $2.5 million and $2 million in the first two years for computer programming, data cleansing, forms design, etc. to establish a local option sales tax system and $.5 million annually for one Tax Examiner II position, one Management Analyst I position, one Office Specialist I position and 2 Revenue Agent positions and related costs. A new Property Tax and Rent Relief Program account within the Maine State Housing Authority would also need to be established as an Other Special Revenue Funds account to accept the revenue and authorize expenditures.