AUGUSTA — A bill to exempt nonprofits from collecting sales tax on fundraising meals has been amended and is expected to be reconsidered by the House of Representatives on Friday.

LD 1613, “An Act to Exempt from Sales Tax Meals Sold by Nonprofit Organizations,” is sponsored by Sen. Tom Saviello, R-Wilton. He said many representatives did not understand the changes he made on the bill’s fiscal note, or its cost to taxpayers.

The fiscal note attached to the bill from Maine Revenue Services estimated the loss of revenue to the state in fiscal year 2017 at $1.7 million and in fiscal year 2018 at $1.9 million. 

Saviello met with Rob Weaver, director of Governmental and Legislative Affairs, and Mike Allen of Maine Revenue Services, leading to a fiscal note of $35,000, which Maine Revenue Services felt could be absorbed, Saviello said.

The three amendments added to the bill, bringing the lower fiscal note are: meals catered by nonprofits are not exempt; events where alcohol is served are not exempt; and nonprofits are exempt from collecting meals taxes for up to 23 days per year.

[email protected]


Only subscribers are eligible to post comments. Please subscribe or to participate in the conversation. Here’s why.

Use the form below to reset your password. When you've submitted your account email, we will send an email with a reset code.