Store takes exception to Maine tax Cabela’s threatens to pull out of Scarborough project

PORTLAND – Cabela’s Inc. may scuttle plans for a retail store that’s supposed to anchor a major development in Scarborough unless it’s granted a waiver from being required to charge sales tax on catalog purchases from Maine.

Cabela’s, which contends its retail business is separate from the catalog business, has asked for an advisory ruling from Maine Revenue Services.

Nebraska-based Cabela’s has been granted exceptions in the other states where it has stores. But there’s opposition in Maine, home to L.L. Bean.

“It is not about competition; bring the competition on,” said Rich Donaldson, spokesman for L.L. Bean, which sells outdoor gear through catalogs and retail stores. “It is about playing by the same rules.”

The Senate and House chairmen of the Legislature’s Taxation Committee said Monday that such a major tax policy question should be decided by elected lawmakers, not a tax administrator.

“It’s always been that if you have a presence in Maine, like a store, than you must collect sales taxes,” said Rep. Richard Woodbury, I-Yarmouth. “This has ramifications for a lot of other companies and it has potential impact on state revenues.”

“I’m going to ask for the committee to meet on this and find out what is going on,” said Sen. Joe Perry, D-Bangor.

The 125,000-square-foot Cabela’s would anchor a $75 million project featuring office buildings, a 200-room hotel, restaurants and a bank.

Scarborough officials have opened their arms to Cabela’s while seeking to jumpstart development at the location near Exit 42 of the Maine Turnpike.

Cabela’s is apparently prepared to withdraw its plans for Scarborough if the state does not agree with its tax proposition.

“It is a dealbreaker for Cabela’s,” said Gene Beaudoin of New England Expedition LLC, which put together the proposal.

Both sides have hired prominent Maine lobbyists and political consultants.

Ted O’Meara, campaign manager for U.S. Sen. Olympia Snowe, R-Maine, is working for the developer that’s seeking to bring Cabela’s to Scarborough. Dennis Bailey, who orchestrated anti-casino efforts in Maine, has spoken in opposition to the development.

The Maine State Chamber of Commerce and the state chapter of the National Federation of Independent Businesses also have expressed their opposition to the sales tax waiver for Cabela’s.

Cabela’s representatives were in Augusta last week, according to Beaudoin and Jack Cashman, commissioner of the state Department of Economic and Community Development.

“I am in favor of Cabela’s coming in, but not preferential treatment,” Cashman said. “The question is: Would they be providing treatment to Cabela’s that they have refused to others.”

State finance commissioner Becky Wyke, whose department includes Maine Revenue Services, said Cabela’s request is for an interpretation of existing tax law. She said there is very little she can say publicly about the request which is protected under the confidentiality provisions of state tax law.

She also indicated that under the same law, Maine Revenue Services’ decision about whether to grant the sales tax waiver or not would also have to remain confidential.

That news upset Sen. Jonathan Courtney, R-Sanford, the lead GOP member of the tax committee.

“This is a tax policy matter and the public has a right to know what is decided and why,” he said. “This could have revenue implications that we need to know about.”

Mal Leary of Capitol News Service contributed to this report.