Owners of self-storage and other small businesses in Maine are joining local legislators in attempting to repeal a recent tax-reform law that adds a 5 percent sales tax to their services. Signed by Gov. John Baldacci in June, the measure also reduces the state income tax and increases the meals and lodging tax.
The sales tax is to be applied to a wide range of services, including self-storage, admission to museums and amusement parks, and taxi rides. Removed from the list were businesses such as legal firms, ski resorts and golf courses, those generally patronized by more affluent consumers.
To ensure the item is addressed on the June 2010 ballot, challengers of the tax have until Sept. 15 to gather 55,087 verified signatures. If they succeed, the law set to go into effect Jan. 1 will be held in abeyance until after the election. State reps don’t feel they’ll have much trouble getting the signatures.
Eliot resident Richard Donhauser, who owns a self-storage facility and is also a certified public accountant, referred to the law as a “bait and switch,” claiming the sales tax will more than offset the reduction in income tax.
Source: Seacoastonline.com, Sales taxes drive neighbors to N.H.
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