News

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.

Latest Headlines

9 hours ago in Local

New Hampshire Man Faces Attempted Murder After York Co. Stabbing

Deputies say the victim was taken to Maine Medical Center in Portland.

11 hours ago in Local

Man Accused of Threatening to Detonate Bomb During Bangor Burglary

Officers say they found the suspect inside a closed business in Bangor

11 hours ago in Local

CMP Transformer Move to Delay Traffic Through Scarborough

Drivers are asked to plan alternate routes and expect delays.

12 hours ago in Local

Standish woman accused of fatally shooting boyfriend appears in court

A Standish woman charged with murder for the shooting death of her boyfriend made her first court appearance on Monday.

12 hours ago in Local

Police looking for leads after drive-by shooting damages Auburn home

There were no injuries but a home was struck by gunfire during a drive-by shooting in Auburn over the weekend.