Businesses push against sales tax hike proposal
Gov. Paul LePage’s proposal to increase the sales tax and include more goods and services under the tax code has met some opposition from businesses and trade groups.
The Bangor Daily News reported that the proposal would increase the sales tax from 5% to 6.5%, increase the service provider tax from 5% to 6%, decrease the lodging tax from 10% to 8% and decrease the meal tax from 8% to 6.5%. The proposal also calls for taxing nearly all goods and services, many of which are currently exempt. Groceries, medical expenses and vehicle repairs would remain exempt.
Shelley Doak, executive director of the Maine Grocers and Food Producers Association, was among those criticizing the sales tax proposal, saying that expanding the taxation of “prepared food” would have a great impact on Maine’s grocery stores and divert business to New Hampshire “because of real or perceived lower prices.” Sheena Curtis, a CPA at Portland-based BerryDunn, said taxing accounting services would put her company and others at a “competitive disadvantage” with businesses in other states.
Source: Bangor Daily News
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