Resolve, To Study The Economic Effects Of Instituting A Seasonal Sales Tax

132nd Legislature (2025-2026) Introduced by Joe Baldacci and 1 co-sponsor

Directs a study on the economic impact of a seasonal sales tax, assessing revenue stability, prices, business burden, and cross-border effects to inform future policy.

Pursuant to Joint Rule 310.3 Placed in Legislative Files (DEAD)

#provisionsrevised #salesandusetax #seasonaltax

Overview

Bill Number: LD 440

Title: Resolve, To Study The Economic Effects Of Instituting A Seasonal Sales Tax

Type: Resolve (directs a study, not a new law)

Introduced: February 4, 2025

Subject: Provisions revised; Sales and use tax; Seasonal tax

Status: Dead. Placed in Legislative Files pursuant to Joint Rule 310.3

Introducer/Committee: Referenced to the Joint Committee on Taxation

Purpose and Intent

The bill would direct a formal study to analyze the potential economic effects of creating a seasonal sales tax. The aim is to assess whether implementing a tax only during certain times of the year would have material impacts on revenue, consumer behavior, business activity, tourism, and overall state economy.

Key Provisions (What the bill would do)

Direct the Legislature to study:

Economic impacts of instituting a seasonal sales tax, including the expected effect on state revenue stability and variability.
Impacts on consumers, such as changes in purchasing patterns, price levels during taxable seasons, and any regressive effects.
Implications for businesses, including compliance costs, administrative complexity, and potential effects on small businesses and seasonal industries.
Administrative design considerations (seasonal window, tax rate, exemptions, thresholds, and enforcement challenges).
Potential impact on cross-border shopping and regional economic activity (including neighboring states without a seasonal tax).
Use of any anticipated revenue (e.g., funding for public services) and how it would fit with current tax structure.

Require the preparation of findings, conclusions, and recommendations to be reported to the Legislature.

Note: As a Resolve, the bill itself would not impose a seasonal tax; rather, it would authorize and direct a study to inform future policy decisions.

Affected Parties and Impacts

State Government and Tax Authorities: Additional research workload for the Department/Committee designated to conduct the study; potential recommendations affecting tax policy design.

Businesses: Input on administrative feasibility and potential cost of compliance if a seasonal tax were contemplated.

Consumers and Tourists: Potential impact on prices during taxable seasons; changes in purchasing behavior if a seasonal tax were implemented.

Local Economies: Possible effects on seasonal industries (retail, tourism) and cross-border commerce.

Procedural and Timeline Aspects

February 4, 2025: Referred to the Committee on Taxation; suggested and ordered printed; sent for concurrence.

March 11, 2025: Work Session held; Voted ONTP (Ought Not To Pass).

March 19, 2025: Reported Out - ONTP.

March 20, 2025: Placed in Legislative Files (DEAD) pursuant to Joint Rule 310.3.

The bill did not advance into substantive law and is considered dead under current tracking.

Notes for Context

The bill reflects a policy inquiry rather than immediate legislative action. If revived, a similar Resolve would typically authorize a legislative study committee to examine data, model fiscal impacts, solicit stakeholder input, and produce a final report with recommendations for potential future legislation.

If you’d like, I can provide a concise one-page briefing for policymakers or a more detailed stakeholder impact memo.

Bill