LePage budget would expand sales tax to many digital services
PORTLAND — Gov. Paul LePage’s latest budget proposal seeks to expand Maine’s sales tax to a range of in-person services from haircuts to movie tickets. It’s also extending the state’s ongoing tax fight into the digital realm.
In a move that mirrors past efforts to apply Maine’s sales tax to online retailers such as Amazon, LePage’s latest budget reaches into the realm of online services for revenue, joining other states pursuing a “cloud tax” on streaming subscription services such as Netflix, Hulu, and Apple and Amazon music. It would tax those services at a rate of 6 percent.
The governor’s budget proposal reaches further into the digital realm, too, requiring rental platforms such as Airbnb to collect taxes for Maine rentals booked through what the budget bill defines as a ” transient rental platform.” The budget separately raises the lodging tax to 10 percent, from 9 percent.
The governor’s budget proposal extends a push by the state and federal government to capture revenue from online retail sales. A 2013 state law broadened the state’s power to collect tax from such retailers.
Read more: http://www.sunjournal.com/news/business/0001/11/30/lepage-budget-would-expand-sales-tax-many-digital-services/2061360