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LD 1505

An Act To Phase Out The Sales And Use Tax

132nd Legislature (2025-2026) Introduced by Dick Campbell and 4 co-sponsors

Maine bill to eliminate sales and use tax failed in House 99-46, lacking sufficient support for phased elimination of major state revenue source.

Placed in Legislative Files (DEAD)
#phasedout #rate #salesandusetax
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WeVote Research Nonpartisan
Bill Summary · LD 1505

Legislative bill overview

LD 1505 proposes to phase out Maine's sales and use tax, which currently generates significant state revenue. The bill was introduced with bipartisan sponsorship but faced substantial opposition in the House, where it was rejected 99-46 on June 9, 2025.

Why is this important

Sales and use taxes represent a major funding source for Maine's state budget, supporting education, infrastructure, healthcare, and public services. Eliminating this revenue stream would require either dramatic spending cuts, alternative revenue sources (such as income tax increases), or both—creating significant fiscal implications for state operations and potentially affecting service delivery.

Potential points of contention

  • Revenue replacement: Eliminating sales tax revenue (~$1+ billion annually) necessitates identifying alternative funding sources, whether through increased income taxes, property taxes, or reduced services
  • Regressivity concerns: Sales taxes are regressive and elimination could be framed as tax relief, but losing this revenue may force increases in less regressive taxes that could offset benefits for lower-income Mainers
  • Economic transition: Removing a consumption tax could affect business operations, pricing structures, and interstate commerce dynamics with neighboring states that retain sales taxes

Compiled from official sources — confirm details with the bill’s official record.

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