A proposed bill sponsored by Representative Arthur Lerman, the following bill would impose a 3 percent tax on the gross receipts (total sales) of any stores over 60,000 square feet that are located outside of a downtown. Two-thirds of the revenue generated from the tax would be used to support the state’s Dirigo Health Care Program and one-third would be transferred to Maine’s Small Enterprise Growth Fund.
- Testimony on LD 1553, An Act To Impose a Gross Receipts Tax on “Big Box” Stores in Maine – Before the Maine Legislature’s Taxation Committee, by Stacy Mitchell, Institute for Local Self-Reliance, April 25, 2005
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA c. 370-A is enacted to read:
GROSS RECEIPTS TAX
As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.
1. Gross receipts.“Gross receipts” means all receipts from retail sales from a taxable establishment, whether in the form of money, credits or other valuable consideration, received as a result of engaging in or conducting retail sales, without deduction on account of the cost of the property sold, the cost of the materials used, labor or service costs, interest paid, taxes, losses or any other expenses.
2. Taxable establishment. “Taxable establishment” means a retail store that:
A. Has more than 60,000 square feet of retail floor space;
B. Offers consumer goods to the general public; and
C. Is located outside of a downtown, as defined in Title 30-A, section 4301, subsection 5-A.
§2832. Tax assessment
A taxable establishment is subject to a tax of 3% of the gross receipts of the taxable establishment from retail sales.
§2833. Filing; payment
1. Return. A person engaged in or conducting retail sales of consumer goods at a taxable establishment within this State that is subject to tax under this chapter shall file a return in accordance with subsection 2.
2. Deadline for filing; remittance of payment. On or before January 31st of each year, a taxable establishment shall file a return, in a form adopted by the bureau, with a remittance of the tax owed for gross receipts pursuant to section 2832 occurring during the preceding year.
§2834. Transfer of money received
The money received from the tax levied under section 2832 must be transferred in accordance with the following:
1. Dirigo Health Fund. Two-thirds must be transferred to the Dirigo Health Fund established under Title 24-A, section 6915; and
A.2. Small Enterprise Growth Fund. One-third must be transferred to the Small Enterprise Growth Fund established under Title 10, section 383.
Thebureau shall adopt rules to implement this chapter. Rules adopted pursuant to this section are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.
Thisbill imposes a gross receipts tax of 3% on certain retail stores that are located outside of a downtown, as defined in the Maine Revised Statutes, Title 30-A, section 4301, subsection 5-A. The tax is imposed on retail stores that have retail floor space greater than 60,000 square feet.
Of the amount of revenue collected pursuant to the gross receipts tax, 2/3 will be transferred to the Dirigo Health Fund established under Title 24-A, section 6915, and 1/3 will be transferred to the Small Enterprise Growth Fund established under Title 10, section 383.