LD746

Municipalities can impose a 2% local option sales tax on short-term lodging with voter approval.

This bill allows municipalities to impose a 2% local option sales tax on short-term lodging, such as hotels and tourist camps, if approved by a majority of voters in a referendum. The tax cannot take effect before January 1, 2026. Ten percent of the revenue generated must be transferred to the Maine State Housing Authority for rural affordable housing programs. The remaining revenue is distributed to the imposing municipality. The tax is subject to specific administrative and notification requirements.