Despite the efforts of the local and national self-storage associations, Maine Governor John Baldacci signed a new tax-reform bill last week that applies a 5 percent sales tax to self-storage and several of the state’s services. Aiming to collect more tax from visitors and less from residents, the bill lowers the state’s income-tax rate and applies more tax to goods and services. It also increases the meals and lodgings tax from 7 percent to 8.5 percent.
The income-tax reduction takes effect on Jan. 1, reducing the rate from 8.5 percent to 6.5 percent for those earning less than $250,000 per year, and from 6.85 percent versus 6.5 percent for those earning more.
The bill’s supporters estimate the total savings for Maine taxpayers at approximately $55 million per year. Those opposed question whether the bill will truly result in a tax break for most residents.
Source: Bangor Daily News, Baldacci signs tax reform bill into law