ME LD632

Municipalities may impose a 2% local option sales tax on short-term lodging (hotels, rooming houses, tourist/trailer camps) if approved by local referendum with majority support and at least 20% voter turnout

15% of collected revenue goes to Maine State Housing Authority for rural affordable rental housing programs; up to 2% covers state administrative costs; the remainder returns to the participating municipality

Municipal revenue must be used exclusively for affordable housing programs (where at least 50% of units are affordable), rental assistance for lower and moderate income households, or general assistance costs

Revenue from this tax cannot reduce or eliminate other state funding to municipalities, including aid for schools, roads, public assistance, or jails

Tax cannot take effect before January 1, 2026, and municipalities must notify the State Tax Assessor at least 90 days before implementation