AUGUSTA - A bill sponsored by Rep. Mike Sylvester, D-Portland, to authorize a local option sales tax on prepared food and lodging and provide funding to the Maine State Housing Authority was advanced by the Taxation Committee on Tuesday.
"I champion a local option sales tax because of my strong belief in home rule," said Sylvester. "Municipalities need to pay the bills, but they cannot be independent without a mechanism to raise revenue besides property taxes. By paying just a 1% tax on lodging and prepared food, our tourist guests will help lower the property tax burden being borne by our communities."
As amended, this measure allows a municipality to impose a local option sales tax of no more than 1% on prepared food and short-term lodging if approved by referendum by the voters in that municipality. Ninety percent of the revenue from the local option sales tax would be distributed to the municipality to use as needed. The other 10% would be distributed to the Maine State Housing Authority to establish a program of property tax relief and rent relief for municipalities.
"If service center communities do move forward with a tax on tourism, I strongly believe that every Mainer ought to benefit," added Sylvester. "That is why 10% of the tax will go to the Maine State Housing Authority to help move people off of the voucher waitlist. This charge on lodging will keep people housed. That just makes sense."
The measure will face additional votes in both the House and the Senate during the coming weeks. If passed by the full legislature, this would not go into effect until 2023.
Sylvester, House chair of the Labor and Housing Committee, is a small business owner serving his third term in the Maine House of Representatives. He represents House District 39, which includes part of Portland.
Contact:
Jackie Merrill [Sylvester], c. 812-1111