132nd MAINE LEGISLATURE
		LD 746		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 " "
	Committee: Taxation
	Fiscal Note Required: Yes
Fiscal Note
			FY 2025-26	FY 2026-27	Projections  FY 2027-28	Projections  FY 2028-29
Net Cost (Savings)
	General Fund		$937,927	$826,995	$545,341	$524,341
Appropriations/Allocations
	General Fund		$937,927	$698,995	$148,341	$148,341
	Other Special Revenue Funds		$0	$326,000	$2,131,000	$2,178,000
Revenue
	General Fund		$0	($128,000)	($397,000)	($376,000)
	Other Special Revenue Funds		$0	$4,821,000	$20,829,000	$21,320,000
Fiscal Detail and Notes
	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.