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I just reviewed a news bulletin concerning changes in the taxation laws, one of which was the addition of a $1 fee for oil changes. Another change was the exemption of extended warranty companies from paying sales tax on parts for repairs done under their contracts. If I am understanding that change correctly, it means that a customer purchasing an extended warranty contract is now subject to a 5 percent sales tax on the sale at time of purchase, and any repairs that are made under a contract (as of Sept. 20) will not be taxed the 5 percent on parts.

So what the Legislature has done is added another tax to Maine citizens and removed any sales tax requirement from the warranty companies for any resulting repairs under their contracts.

I guess the state doesn’t need out-of-state revenue; it’ll just collect more from citizens.

Do the math: A $1,500 contract would now cost the citizen $75 on top of the purchase price. If the vehicle comes back for a $3,000 transmission, the tax of $150 will not be collected. Subtracting the citizen’s $75 tax from the $150 of lost revenue leaves $75 in revenue lost. Multiply that loss by many contracts and many repair shops. Where will that loss be recovered, as I am quite certain our government isn’t planning on cutting spending?

When people are crying about their tax burden, is that how our elected representatives respond?

John Robertson, Leeds

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