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Bill Would Increase Maine Hotel Taxes For School Construction

Bill Would Increase Maine Hotel Taxes For School Construction

Photo: 560 WGAN Newsradio


A bill in the state legislature would add a three percent sales tax on hotel or lodging stays with the money going to school construction and K through 12 education in general.

The bill from Democratic Representative Michael Brennan of Portland would take effect next January.

The Maine Monitor reports Brennan believes the tax would generate $60 million per year for schools.

Maine currently has a nine percent tax on hotel stays, known as a lodging tax.

The bill is meant to reduce property taxes used for education.

The state pays for 55 percent of the cost of local schools under a referendum approved by voters in 2004. Municipalities largely finance the rest of the cost through property taxes

But the percentage of state funding varies in each district, based on a district’s property values and student enrollment, and some other factors. Property values have risen sharply in recent years, leaving taxpayers in high property value areas to foot a constantly increasing share of public education costs.

Brennan’s bill has nine Democratic cosponsors: Sen. Joe Rafferty (D-York), Rep. Daniel J. Ankeles (D-Brunswick), Rep. W. Edward Crockett (D-Portland), Rep. Janice S. Dodge (D-Belfast), Rep. Lori K. Gramlich (D-Old Orchard Beach), Rep. Marc G. Malon II (D-Biddeford), Rep. Anne-Marie Mastraccio (D-Sanford), Rep. Matt Moonen (D-Portland), and Rep. Kelly Noonan Murphy (D-Scarborough).

The bill has been referred to the tax committee but has not been scheduled for a hearing yet.

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