AUGUSTA (AP) – Maine cottage renters who’ve been avoiding paying sales taxes in the past will have to pay up if Gov. John Baldacci’s proposed $5.7 billion budget is enacted.

The state already collects the 5 percent tax on camp rents that are handled through brokers. But state revenue officials say a loophole in the law allows other “casual” rentals that are handled privately to go untaxed. By closing that loophole, the state hopes to collect $7.5 million more over the next two-year budget cycle, which starts July 1.

Acting Executive Director Jerome Gerard of Maine Revenue Services says officials have found increased activity among owners of seasonal homes in Maine who are renting their properties, especially over the Internet. In those cases, renters aren’t paying state taxes.