Maine’s business community is divided over a plan to change Maine’s tax structure.
The bill, LD 1088, proposed by a bipartisan group of lawmakers, would reduce the personal income tax rate, increase the meals and lodging taxes and levy a 5% sales tax on previously tax-free services like car repairs and bowling, according to the Bangor Daily News. Proponents say the bill would stabilize the state’s tax revenue base. But at a recent hearing in Augusta, members of the business community spoke out against the bill, saying it would hurt the tourism industry.
The Maine Merchants Association opposes the bill, the Maine State Chamber of Commerce is hoping for amendments to limit spending and tax rates, and the Portland Regional Chamber of Commerce and the Maine Municipal Association are in favor of it, according to the Associated Press.