AUGUSTA — Senate President Justin Alfond of Portland has presented a measure aimed at “leveling the playing field” for Maine businesses.
Alfond’s sponsored LD 435, “A Resolve, To Require the State Tax Assessor To Develop Agreements with Online Retailers for the Collection of Sales and Use Tax” would direct the state tax assessor to enter into negotiations with online retailers to develop an agreement to collect sales taxes.
“With so many businesses struggling to survive, it is imperative that we require online retailers to do what thousands of Maine businesses do every day: collect the sales tax,” said Alfond.
At Monday’s public hearing held in the Taxation Committee, the bill received support from business owners and leaders from all across the state. Alfond’s bill was one of several heard regarding an online sales tax.
“Maine businesses and Maine products compete nationally and it is most important that we level the playing field for Maine businesses,” said Alfond.
Online sales were more than $560 million in 2011, which means approximately $28 million in tax revenue was lost. Online shoppers are currently required to itemized their online purchases and pay a use tax, but with no enforcement mechanism, compliance is extremely low.
The work session for the bill will be Monday, March 25, at 1 p.m.
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