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Lawmaker wants to let Maine cities levy local sales taxes

December 2, 2018

AUGUSTA, Maine (AP) — A Portland Democratic lawmaker wants to allow Maine cities and towns to levy local sales taxes.

The Portland Press Herald reports that Rep. Mike Sylvester wants lawmakers to pass such a bill, which has previously faced opposition.

Republican incoming Senate Minority Leader Dana Dow said that local-option sales taxes will pit communities against each other by encouraging people to drive around to get a better deal on large-ticket purchases.

The Maine Municipal Association estimates a 1 percent local tax would generate $16 million a year for Portland.

The nonprofit Tax Foundation says Maine is one of 12 states that don’t allow local sales tax. Maine’s 5.5 percent sales tax is among the nation’s lowest.

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