This bill is a concept draft pursuant to Joint Rule 208. This bill proposes to eliminate the 8% sales tax on all prepared foods, including meals served in restaurants, for the purpose of boosting economic activity by making dining out more affordable. The Department of Economic and Community Development would be required to initiate an advertising campaign to encourage tourism in Maine and promote dining establishments as tax-free, with the exception of alcoholic beverages. The loss of revenue from the repeal of the sales tax on prepared foods would be offset in a number of ways, including:
1. Broadening the items subject to sales tax and increasing the rate of the sales tax on certain high-end luxury items, such as bicycles, boating gear and other recreational equipment; high-end electronics, such as smartphones and laptops; and elective medical procedures that are not medically necessary;
2. Performing an assessment of sales tax exemptions on nonessential goods and services to ensure that only those exemptions that are intended to provide a fair system of taxation are retained; and
3. Conducting a comprehensive audit of state government programs and expenditures to eliminate inefficiencies and waste.