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.

Update hourly