LD 1110 – An Act To Establish a Local Option for Sales Tax

Summary: This bill allows a municipality to impose a local option sales tax if approved by
referendum of the voters in that municipality. The referendum question must identify the rate of the
local option sales tax, the categories of taxable items the local option sales tax will apply to and the
purposes for which the revenue will be used. The local option sales tax would be collected and
administered by the State in the same manner as the sales and use tax. Revenue from the local
option sales tax is distributed to the municipality imposing the local option sales tax. Revenue
received by a municipality may not be used to reduce or eliminate funding otherwise due the
municipality under other provisions of law.

Veiw Full Bill