Below are some of the hundreds of tax exemptions Maine currently offers and the amount of revenue they would have provided to the state this year. To pay for Question 1A without cutting other state programs, exemptions worth $245 million would have to be removed in the first year.
As you can see, there are plenty of places from which to choose – each with a constituency that would object. Dozens more sales-tax exemptions aren’t listed here because they would amount to so little revenue, but for the exacting, exemptions also exist for fish-passage facilities, farm animal bedding, portable classrooms, eye banks and credit for worthless accounts among many others. Where there is a broad range listed for the amount of revenue expected, it is because the Maine Revenue Service did not have adequate information to be more specific.
So whom would you tax?
Separately charged labor service fees, $23 million
Tips given directly to employees, $847,937
Various telecommunications services, $12,790,416
Exemptions by constitutional provisions, $1 million to $3 million
Certain government entities (such as towns), $114 million
Grocery staples, $112 million
Ships’ stores, $250,000-$999,999
Medicines, $32.8 million
Prosthetic devices, $1.4 million
Certain motor fuels, $63 million
Jet fuel, $1.5 million
Coal, oil and wood, $21 million
Residential electricity, $11 million
Residential gas, $8 million
Fuel and electricity used at a manufacturing facility, $29.8 million
Packaging materials, $11 million
Publications, $4.7 million
Hospitals, research centers, churches and schools, $6 million or more
School living quarters, sleeping or housekeeping accommodations, $3 million to $6 million
Rental charged to any person who resides continuously for 28 days at any one hotel, rooming house, tourist or trailer camp under certain conditions, $128.6 million
Certain vehicles purchased by nonresidents, $250,000-$999,999
Funeral services, $3 million
Nonprofit fire departments and nonprofit ambulance services, $50,000- $249,999
Community mental health facilities, community mental retardation facilities and community substance abuse facilities, $50,000-$249,999
Water pollution control facilities, $250,000-$999,999
Machinery and equipment, $24.7 million
Diabetic supplies, $484,853
Coin-operated vending machines, $754,017
Residential water, $5 million
Mobile and modular homes, $3 million
Nursery schools and day care centers, $50,000-$249,999
Food stamp and WIC purchases, $462,769
Nonprofit youth organizations., $250,000-$999,999
Construction contracts with exempt organizations, $1 million-$3 million
Schools and school-sponsored organizations, food, books, clothing, $250,000- $999,999
Seedlings for commercial forestry use, $50,000-$249,999
Property used in production, $242 million
Meals and lodging provided to employees at their place of employment, $1.8 million
Sales of property delivered outside this state, $6 million or more
Trade-in credits used toward the sale price of another of the same kind of certain motor vehicles including tractors, watercraft, aircraft, lumber harvesting vehicles or loaders, $28.8 million
Refund of sales tax on depreciable machinery and equipment purchases, $4.5 million
Personal services such as haircuts and other services provided by barbershops and beauty parlors, health clubs services, cleaning, laundering, pressing and alteration services, $9.8 million
Business and legal services, $12 million
Amusement and recreational services, $28.3 million
Health services, $25.8 million
Educational services, $43.9 million
Finance, insurance and real estate services purchased by consumers, $75 million
Finance, insurance and real estate services purchased by businesses, $142.7 million
Transportation services purchased by consumers, $10.7 million
Transportation services purchased by businesses, $49 million
Other services purchased by businesses, such as advertising, legal, management, public relations, research, development and testing, $174 million
Gasoline exported from the state, $51.5 million
Gasoline shrinkage allowance, $738,598
State & Local Government Exemption from the Special Fuel Tax, $2.6 million
Fuel Used Solely for Heating or Cooking, $13.5 million
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