Posted on 04/03/2006 11:43:14 AM PDT by SheLion
AUGUSTA - A majority of the Legislature's Taxation Committee wants to shelve overhaul of the state sales tax for this year, even though several studies indicate Maine is losing tens of millions of dollars in Internet sales because the state has not joined an interstate agreement on collection of sales taxes.
"I think if we still didn't have the working waterfront, LD 2 [property tax relief] and the personal property tax [on business equipment] I think we would deal with it this year," Sen. Joe Perry, D-Bangor, said Friday. "We just have too much to do."
Perry also said he believes the state will need to sign on to the so-called streamlined sales tax plan because not collecting sales taxes on Internet sales is hurting the "bricks and mortar" stores in Maine by making them less competitive.
"I think we should do this, but not this year," he said.
Rep. Herb Clark, D-Millinocket agreed. He said the hearing was held last week on what he called an extremely complex bill that would rewrite the state sales tax.
"We ought to work on this over the summer and come back with a bill for right at the beginning of the next session," he said.
Sen. Jon Courtney, R-Sanford also opposed working on the bill this session, but for a different reason. He believes the process required by joining the multistate agreement could be unconstitutional by making several changes in what is taxed and at what rate based on the decisions of the streamlined sales tax commission.
"An example is that we may have to bring back the snack tax to meet the requirements of streamlining our tax," he said. "I don't want to do that and I don't think there are many people that do."
Including states, counties, communities and special districts, there are more than 7,500 jurisdictions in the country that impose sales taxes. In some states, consumers pay a state sales tax, a county sales tax and a sales tax on certain items to help fund schools or sporting arenas through a special sales tax district.
The model law would standardize definitions and do away with specific exemptions groups have carved out over the years.
"That is where there will be problems," Courtney said.
Matthew Schaefer, a tax lawyer with the Brann & Isaacson law firm in Lewiston, told the panel the legislation submitted by the Baldacci administration did not spell out what items are being recommended to be taxed at what rates to meet the terms of the multistate agreement.
"There are provisions of the agreement that would exclude, as candy, anything that includes flour, so Kit Kat bars, for example, would not be candy," he said. "But as I understand the way the candy definition is written, other items like fruit rollups would be swept into the definition of candy."
Finance Commissioner Becky Wyke said Friday a federal study estimates the state is losing between $30 million and $100 million a year in untaxed Internet sales. She said the goal of the administration is to work with the Legislature to make the measure as revenue neutral as possible. Even higher amounts are estimated in a University of Tennessee study that extrapolated lost tax revenues based on actual sales of some major Web and mail-order companies to individuals in the states.
"We are looking to make a fairer system, not to generate additional revenue," Wyke said.
She said a coalition of state and local government officials from around the country joined by many large and small retailers is pushing Congress to enact the Simplified Sales and Use Tax Act, which would allow states to compel "remote sellers" to collect sales taxes as long as the states agree to eliminate a lot of the multiple exemptions, conflicting definitions and multiple rates that now make compliance difficult for businesses.
"Right now it is a voluntary agreement;" she said, "if Congress acts, it would be mandatory for these remote sellers to collect the sales tax."
Even when Maine consumers now buy goods from a retailer in another state - either while visiting that state or through the Internet - they should pay Maine Revenue Services the general 5 percent sales tax because Maine's sales tax is really a sales and use tax.
That means an individual owes the 5 percent sales tax on the book or DVD he or she bought online from an out-of-state company because the product is used in this state.
For years the state has grappled with the problem of how to collect the tax that is owed. Maine currently has a line on its personal income tax form aimed at collecting some of the taxes due on personal purchases made on the Internet or made while visiting a sales tax-free state such as New Hampshire.
But it is voluntary - the state relies on individuals being honest about reporting such purchases, but has no means of verifying if they don't. Tax officials privately admit that the goal of many Americans is to avoid paying any taxes they are not forced to pay.
"We would have liked to see the Legislature tackle this during this session." Wyke said, "But I can understand why they would not. But, we are going to have to deal with this issue; it is not going to go away."
So now, when you go on vacation out of state and buy all those souvenirs, don't forget you will have to pay Maine taxes on these items, because they will be USED IN THE STATE. What a crock.
And for everyone ordering off of the internet, even if there is no outlet in Maine, don't forget to pay Maine taxes on these items, because we will be using them IN THE STATE.
Yep! Maine lawmakers are getting desperate. Wonder where the money went?!
No more shopping LL Bean online for me.
Maine's government and economic model inch closer to all out socialism. I thank the poster for reminding me why I moved from that beautiful but backwards place.
Ok,
Who's got the "Not this S$$T again" photo.?
Since they won't be able to collect taxes on every item brought into the state, I'm sure they'll take the tack of setting a minimum tax for everybody. They do that so that the ones who do not make such purchases will make up for the ones who aren't "taxed enough".
Stupid government types. They always see the lack of a tax as the citizens stealing from them. These stupid leftist media types play right along with them and report as this one did, that the state is "losing millions". The honest headline would be, "State thinks its not stealing enough from the citizens".
Yeah ... riiiiiiiiiight!
Also, you should see when the Maine State Troopers go on their Gastapo raids as they set them selves up just on the Maine side of the NH/Maine boarder to pull over Mainer's coming back into Maine from NH with liquor, TV's, Washer's, etc... so they can report them to Maine Dept of Revenue for trying to skirt paying sales tax. Maine sends undercover police into the parking lots of the Newington, NH mall and other large business areas in the Portsmouth area and radio ahead the licence plate numbres of Mainers coming back into Maine with goods ... what Nazi tactics
Thanks.
OMG! Don't stand between a bunch of east coast lefties and their taxes!
Whatever the State loses the people KEEP... groooovey..
The STATE has Zero RESOURCES except what its stolen from the people..
I think the federal courts will rule this is interference with interstate commerce. Maine is free to tax what is sold inside the state boundaries, but not what is purchased outside the state.
Gives credence to the saying,you can get away with murder,just dont run a stop sign on the way out of town!
That's a great way to drive business out of the state. Why would any potential employee agree to that kind of abuse? If the employer won't cough up the "tax" as part of the recruiting process, they won't be getting any offers accepted.
When I go to Maine for vacation or for the weekend I always get my beer at the same place. NEW HAMPSIRE!
Business is like a lick cow. The pols won't recongize that cows can be pumped dry.
WHAT'S NEXT - A CONDIMENT TAX?
What kills ME is it's OUR MONEY! Damn state lawmakers! Always looking for a way to dig deeper into our pockets.
I don't think it's anyone's business where or how we shop!
You're kidding me! I live way north and haven't traveled to southern Maine and across the border in several years. The State Troopers really do this? What about that NH liquor store right off of the Interstate? Can Maine people still shop there and bring liquor home???
Yep. It sticks in my craw too. They always approach it as them losing money, that's it's theirs to begin with.
Note to self: Do not purchase anything from Maine, made in Maine, sold in Maine, etc. I always search the web page for home location and make decision accordingly. Blue states automatically have a strike against them, others that tax, want to task, wish to tax sales get two....
I'm with you!!! I'm tired of being treated like sheeple by these idiots in the state house.
Maine will put L. L. Bean, one of its finest companies, right out of business.
Wasn't there a story about a goose and some eggs?
Note to self: Do not purchase anything from Maine, made in Maine, sold in Maine, etc. I always search the web page for home location and make decision accordingly. Blue states automatically have a strike against them, others that tax, want to task, wish to tax sales get two....
Ssssh - don't let the politicos in Washington State find out about this. They're already on the lookout for people who live in Washington State who buy and register their vehicles in no-sales-tax Oregon so as to avoid WA sales tax.
Is it me, or is the Baldacci regime selling Maine down the Kennebec?
How pathetic:
http://www.maine.gov/governor/baldacci/index.shtml
These are the best photos available? Gone to the dogs, indeed. That page is just downright embarrassing.
That’s why I always ask myself the same question my father posed to me everyday when I was a state senator: What did you do for the people today?
Judging my the photo next to the text, the answer to that question is, "Cr@pped on their lawns."
Just like Gov King......he will try to screw the state even further into the ground before his time is up. He is one disgusting creature!
GAHHHHHHHHHH Return Of The Living Dead!!
"You're kidding me! I live way north and haven't traveled to southern Maine and across the border in several years. The State Troopers really do this? What about that NH liquor store right off of the Interstate? Can Maine people still shop there and bring liquor home???"
Yes Maine Troopers and Revenue agents do these "stings" every once in a while. Yes Mainer's can buy liquor at the Portsmouth circle store or any NH Liquor store and bring it back, but people who go in and drop $500, $1000 (I have had someone buy $1200 in liquor in front of me before), and have cases can be targeted if an undercover rev. agent just happens to be around.
These agents/trooper are more prevelent in the Newington Mall or other big shopping areas down here. Now they do this this very infrequently, just a "show of force" every once or so a year. But it does and has happened.
ping
We used to travel to Cape Cod a few times a year and always stopped at the NH State Liquor Store on the way home and kinda stock up. Nothing close to a thousand dollars though. But we were never bothered.
But with Maine state lawmakers getting so desperate for tax money, nothing would surprise me now on how people are going to be treated bringing liquor in from NH.
They are trying to put strings on our hands and feet and turn us into puppets now. Not many of us are happy about this either!
Agreed!! But, he'll win re-election with around 60%. Real Republicans are few and far between up here.
MAINE TAX BURDEN RANKED HIGHEST IN THE NATION
04/14/2005
AUGUSTA: Coming off of the news that Maine has earned top honors as the highest-taxed state in the nation according to the Tax Foundation's recent findings, the Maine Republican Party announced its disappointment in Governor Baldacci and majority Democrat efforts to claim meaningful tax-relief for the people of Maine. Maine Republican Party Chairman Randy Bumps made the following statement:
"As Mainers prepare this week for April's dreaded tax-filing deadline this announcement by the Tax Foundation is particularly disheartening, but altogether not surprising. Given that John Baldacci's budget priorities this year called for more borrowing, more spending, and more taxes, it should come as no surprise that Maine ranks Number 1 as the highest-taxed state in the nation. This serves as a reminder to all Mainers that majority Democrats - in power in Augusta for thirty years - are doing nothing to ease the tax burden on the people of Maine. It is unfortunate that the Governor is failing to provide real, meaningful tax-relief which he promised the people of Maine. Governor Baldacci has certainly earned this dubious distinction.”
If what you say is true, somebody in Maine should sue the living s$$t out of the cops for this. And you're right. It literally is Gestapo tactics, as over-used as that phrase is. Despicable, and unacceptable in America. or at least the America I used to live in.
Yes, and the stink just keeps rubbing off on a lot of people from the rats. Mainers sure must love misery!! :(
Libertarian ping. To be added or removed from my ping list, freepmail me or post a message here.
The more money government wastes, the more money they need.
And they find a way to extort it from the citizens, one way or the other.
I didn't think Fat Teddy K. did his own shopping up there.
"(I have had someone buy $1200 in liquor in front of me before),
I didn't think Fat Teddy K. did his own shopping up there."
Fat Teddy ... ha ha ha. Thats good, I wouldn't put it past him to send someone up to NH to save some $$$ on liquor.
But seriously ... it was last summer and this guy in front of me on line had TWO SHOPPING CARTS full of cases of top quality scotch, vodka, wine and stuff. I see the cash register ring up over $1,200!!!! The guy (from out of state) wips out his credit card then he and his wife roll out the stuff to their Escalade ... man thats gonna be some PARTY ... TOOOOGA TOOOOGA TOOOOOGA.
I have it...but can't afford to pay the taxes and fees to post it.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.