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132nd MAINE LEGISLATURE
FIRST REGULAR SESSION-2025
Legislative Document No. 908S.P. 397 In Senate, March 11, 2025
An Act to Eliminate the Sales Tax on Prepared Foods and Support
the State's Hospitality Industry
Received by the Secretary of the Senate on March 5, 2025. Referred to the Committee on
Taxation pursuant to Joint Rule 308.2 and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator MARTIN of Oxford.
Cosponsored by Senators: GUERIN of Penobscot, TIMBERLAKE of Androscoggin,
Representatives: FLYNN of Albion, HENDERSON of Rumford, JACKSON of Oxford,
RUDNICKI of Fairfield. Page 1 - 132LR0603(01)
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4 This bill is a concept draft pursuant to Joint Rule 208.
5 This bill proposes to eliminate the 8% sales tax on all prepared foods, including meals
6 served in restaurants, for the purpose of boosting economic activity by making dining out
7 more affordable. The Department of Economic and Community Development would be
8 required to initiate an advertising campaign to encourage tourism in Maine and promote
9 dining establishments as tax-free, with the exception of alcoholic beverages.
10 The loss of revenue from the repeal of the sales tax on prepared foods would be offset
11 in a number of ways, including:
12 1. Broadening the items subject to sales tax and increasing the rate of the sales tax on
13 certain high-end luxury items, such as bicycles, boating gear and other recreational
14 equipment; high-end electronics, such as smartphones and laptops; and elective medical
15 procedures that are not medically necessary;
16 2. Performing an assessment of sales tax exemptions on nonessential goods and
17 services to ensure that only those exemptions that are intended to provide a fair system of
18 taxation are retained; and
19 3. Conducting a comprehensive audit of state government programs and expenditures
20 to eliminate inefficiencies and waste.
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