AUGUSTA, Maine (AP) — Gov. John Baldacci has signed into law an overhaul of the Maine tax code.

The new law lowers Maine’s top income tax rate but broadens the sales tax to new goods and services.

Baldacci was surrounded by legislative leaders and others who supported the bill when he signed what he called a historic bill in his office. Baldacci said the changes will stabilize the state’s revenue stream, export more of Maine’s taxes and transform the tax code for the 21st Century.

The law Baldacci signed was revised from an earlier version passed by lawmakers to include the governor’s demands.

It bumps up Maine’s meals and lodging tax while channeling some of the proceeds to tourism promotion.

As enacted, Maine’s sales tax is held at 5 percent but applied to more services, while the top income tax rate drops from 8.5 percent to 6.5 percent.

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Items and services that are now taxable:

• “Administrative support operations,” which means secretarial activities and supervision of administrative support staff; bookkeeping and accounting services; customer assistance activities; purchasing and receiving activities; human resources activities; and executive, tax compliance and legal support activities.

• Admission to entertainment venues and performances, including theaters, movies, lectures, concerts, festivals, amusement parks, water parks, fairgrounds (except for licensed agricultural fairs) race tracks, carnivals, circuses, sports activities, stadiums, amphitheaters, museums, planetariums, animal parks, petting zoos, aquariums, historical sites and convention centers

• Fees charged for participation in or entry to miniature golf courses, billiard parlors, go-cart courses and paintball

• Admission fees for exhibition shows such as auto, boat, camping, home, garden, animal and antique shows

• Fees charged for scenic and sight-seeing excursions including aircraft, helicopter, balloon, blimp, watercraft, railroad, bus, trolley and wagon rides, whitewater rafting and guided recreation, but excluding scenic and sight-seeing excursions on federally navigable waters

• Entertainment services such as those provided by bands, orchestras, disc jockeys, comedians, clowns, jugglers, children’s entertainers and ventriloquists

• Installation, repair or maintenance services

• All services involved in the installation, repair or maintenance of jewelry, cameras, guns, musical instruments, electronic and mechanical equipment, lawn and garden equipment, computer hardware and office equipment, vehicles and appliances;

• Service and maintenance contracts with regard to personal property identified in subparagraph

• Tailoring and clothing and shoe repair;

• Furniture repair and restoration.

• “Personal property services” such as dry cleaning; laundry and diaper services provided by someone else; embroidery and monogramming; car washing; pressure cleaning and washing; pet services such as exercising, sitting, training, grooming and boarding for nonmedical purposes; picture framing; domestic services, including house cleaning and furniture and rug cleaning; interior decoration; meal preparation; butchering; art restoration; warehousing and storage, including rental of storage units and warehouse space, but not including warehousing and storage services provided to a business; moving services; vehicle towing; and boat mooring.

However, you don’t still have to pay taxes on:

• Fabrication services; installation, repair or maintenance services; services performed on tangible personal property used or held for use at or located at a manufacturing facility or fabrication facility, other than tangible personal property used in administrative support operations; or services performed on aircraft including refurbishing of aircraft.

• Services performed on tangible personal property used or held for use at or located at a manufacturing facility or fabrication facility, other than tangible personal property used in administrative support operations; or

• Services involved in the installation, repair or maintenance of computer software, special mobile equipment, aircraft, watercraft or a truck or truck tractor registered in the name of a business as a commercial motor vehicle.

• Admission to an agricultural fair or charges for participation in any events or activities occurring at the fair organized by a school or incorporated nonprofit organization if all the proceeds from the event or activity are used for the charitable purposes of the school or organization;

• Fees charged by health clubs and fitness centers;

• Fees charged for lessons or training in dance, music, theater, arts and gymnastics, martial arts and other athletic pursuits; or

• Admission to museums and aquariums operated by a governmental entity or incorporated, nonprofit organization;

• Admission to concerts, dance productions, theatrical productions, sports activities or similar events or activities organized and performed by a school or incorporated, nonprofit organization, if all proceeds of the event or activity are used for the charitable purposes of that school or organization;

• Admission to festivals and special events organized by governmental entities, schools or incorporated, nonprofit organizations if all the proceeds of the festival or special event are directed to support a charitable purpose

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