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May 20, 2013

LePage vetoes online sales tax study

Gov. Paul LePage on Friday vetoed a bill calling for Maine Revenue Services to study the impact of joining a multi-state use tax initiative that would, most notably, capture taxes on online sales.

The Bangor Daily News reported that LePage said in his veto letter that he would prefer a federal solution. Such a bill cleared the U.S. Senate Monday, but its passage in the House remains in question.

Mike Allen, the state's associate commissioner for tax policy, told a legislative committee earlier that the state is losing an estimated $25 million per year in use taxes that go uncollected. On May 7, lawmakers unanimously approved the study bill, which would need a two-thirds majority vote in both chambers to override LePage's veto.

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