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Maine Sees Spike in Revenue With More Online Sales Tax

Maine Sees Spike in Revenue With More Online Sales Tax

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AUGUSTA, Maine (AP) Maine officials say online taxes from merchandise and lodging sales are responsible for an increase in revenue this winter.

A Maine Revenue Services report released earlier this month found that revenue from specialty items and lodging in January and February has added over $4 million in state taxes. Experts tell the Portland Press Herald mounting pressure has convinced companies like Amazon and Airbnb to collect sales taxes.

Previously, most online retailers avoided sales taxes. Maine law requires residents to pay a 5.5 percent “use tax,” but officials say most don’t.

The Supreme Court is currently reviewing a case that could pave the way for nationwide collection. The case stems from a 2016 South Dakota law requiring large out-of-state sellers to collect and turn over sales tax to the state.

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