Action 64 -Support local option lodging tax
Background : As we have noted, Trump’s massive destruction of the federal government is going to force local governments to find creative ways to fund essentials like education and emergency services. Sadly, the need to raise local money will fall on permanent residents more heavily than on summer residents or tourists, who create their own significant burden on local government services, especially in Hancock County’s prime tourist spots such as Mount Desert Island.
Mass tourism produces major demands on water, sewer, sidewalks, roads, police, fire, emergency medical services, harbor and piers, public restroom facilities, waste removal, etc.
Maine is one of only three states that does not allow municipalities to implement a local lodging tax. To help alleviate this problem, Representative Gary Friedmann of Bar Harbor has introduced legislation to impose an additional 2% tax on lodging, at the option of the municipality. Revenue from the new 2% tax would be split into two segments, with 90 cents of every new tax dollar staying in the municipality to be spent on community priorities, and 10 cents going toward a state kitty for affordable/workforce housing managed by the Maine State Housing Authority. Each municipality would vote on whether or not to impose this extra tax on lodging only in their town. It is hardly likely to change the behavior of tourists. Maine would remain one of the most affordable tourist destinations in the nation – a $100 room would cost $102.
Action: You can support LD746, "an Act to Authorize a Local Option Sales Tax on Short-term Lodging to Fund Municipalities and Affordable Housing" by testifying in person or on Zoom or writing to the Taxation Committee.
Contact:
Here is information you need to help you register for the March 12 public hearing:
Links to full text, actions so far, and committee hearing details:
To submit written or Zoom testimony:
https://www.mainelegislature.org/testimony/
Individual Members of the Taxation Committee are:
Senators: Nicole Grohoski, Bruce Bickford, Michael Tipping
Representatives: Kristen Cloutier, Ed Crockett, Gary Friedmann, Thomas Lavigne, Ann Matlack, Tracy Quint, Shelley Rudnicki, Dan Sayre, Gregg Swallow and Russell White.
Website http://legislature.maine.gov/committee/#Committees/TAX
Urgency: The hearing is scheduled for March 12 at 1 PM
Extra Credit:
An in-depth analysis of the bill is available from localoptiontaxid746@gmail.com