This week Scarborough town officials hope to meet with Gov. John Baldacci and state legislators to talk about the economic impact Cabela’s would have on both the town and the state.

The meeting will also cover sales tax exemptions Cabela’s has requested. Cabela’s is asking that the 5 percent Maine sales tax not be applied to their Internet and catalog sales because they are run separately from their store. The company would charge sales tax on all their items sold at the Scarborough location.

In a statement, Gov. Baldacci said that state is currently working to interpret Cabela’s request in order to make sure that all businesses are treated equally.

“The Administration is continuing to work with Cabela’s to encourage them to look favorably on the Scarborough location,” he said.

According to Scarborough Town Manager Ron Owens, the town asked for this meeting in order to tell the governor why they believe Cabela’s would be good for Maine and Scarborough.

“We felt that we needed to let the governor know the impacts of this project,” said Owens.

This meeting comes soon after Connecticut based developers New England Expedition announced plans to build a number of offices, stores, a hotel and other buildings along 75 acres of the Haigis Parkway. The anchor of their project would be a 130,000-square-foot Cabela’s sporting goods store.

This is the first major plan that has been proposed since the town decided to spend $10 million in utility improvements to lure large development to the area. Though the town initially hoped for businesses along the lines of research and technology development, they are excited about Cabela’s.

L.L. Bean spokesmen Richard Donaldson and Dave Teufel also said the company is open to the idea of the Nebraska-based company opening its first Maine store.

“We embrace any competition as long as it’s on equal terms,” said Donaldson. He added that he is aware that Cabela’s and some other large businesses ask for sales tax exemptions. He does not consider that to give Cabela’s an edge.

“We have a very strong loyalty with our customers, and we don’t expect that would change,” said Teufel. “Competition in any business is healthy,” he added.

Cabela’s has not yet determined whether or not they will come to Maine, though spokesman Ed Eckman said at a joint meeting with the Town Council and Planning Board recently that Cabela’s is excited about coming to Scarborough and Maine.

In every state that Cabela’s comes to it asks that sales tax be applied to only its physical store. For it to expand to Maine they ask that no sales tax be charged on their Internet and catalog sales, based on the argument that Cabela’s is actually three separate companies – retail, Internet and catalog.

Sens. Phil Bartlett (D-Gorham), Lynn Bromley (D-South Portland) and Darlene Curley (R-Scarborough) vowed that they will do what they can to see Cabela’s come to Maine and would support any necessary law changes to allow for the tax exemption.

“We will certainly push it as much as we can to get Cabela’s here,” said Bartlett, adding that he and others are “advocates” for Cabela’s and Scarborough.

“We’re going to push people to keep this on top of the pile,” he said.

“I’m so pleased that Cabela’s is coming to Scarborough,” said Curley, adding that both the jobs it will bring and the tourism would be significant. “It will be a great anchor for the Haigis Parkway. We’re here to do whatever we can to see it come.”

Bromley, who is on the Business and Economic Development Committee, said Maine Revenue Services is looking into whether or not Maine law would allow for the sales tax exemption Cabela’s is asking for. Should they decide it is against Maine law, Bromley said they would introduce legislation to help Cabela’s.

“We want to support them as much as we can under Maine law,” said Bromley. “We certainly don’t want to skirt the law.”

Like Bartlett, Bromley hopes Cabela’s will be able to come and will do everything she can to see that it does.

According to Bromley, the problem Revenue Services has to review is the issue of nexus – in other words, where Internet, catalog and store sales connect.

The problem is in areas like returns. If a customer buys an item from the catalog without paying sales tax and then returns it to the store, the question is what do you do about the sales tax, and does that mean the three are actually connected enough not to grant the exemption.

“The nexus, the place where those things connect, that’s where the question is,” said Bromley.

Right now, it is not clear whether or not Maine law is sufficient enough to grant Cabela’s the exemption, she added.

According to Bromley, questions like that one are what Revenue Services has to weigh before giving an opinion.

Bromley is confident that both Cabela’s and the state are working hard and cooperating with each other on coming to an agreement.

“What I’m seeing is people wanting to do it right,” said Bromley. “You just can’t go in and change the rules, so let’s see how far we can go and see how many adjustments we need on Cabela’s side and on the state’s side.”

Jerome Gerard, director of Maine Revenue Services, declined to comment on Cabela’s request, saying that he is unable to talk about any taxpayer.

Jack Cashman, Gov. Baldacci’s director of Economic and Community Development, wants Cabela’s to come to Maine. “We promote Maine as an outdoor facility. Having both Beans headquartered here and a Cabela’s here helps to support that.” He added that Cabela’s could both increase tourism and help boost Maine’s economy.

“Now it’s a question of what the law in Maine will allow,” he said.