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A range of state tax hikes take effect today, including the introduction of sales tax on previously exempt newspapers and magazines, in order to balance the state budget.
The Portland Press Herald reported the state’s general sales tax rose from 5% to 5.5%, starting today, and the tax on meals and lodging rose from 7% to 8%.
For the first time, the state’s sales tax — at 5.5% — will also apply to periodicals, including newspapers. Representatives in the retail, food service and hospitality industries said that whether the increases will affect business remains to be seen. They are keeping an eye on effects of the tax hikes, which are set to expire in June 2015.
The sales tax increase was passed as a compromise measure during the last legislative session in order to avoid partial cuts to the state’s sharing of revenue with municipalities.
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