LD 65 would enable municipalities to establish via referendum vote a "local option sales tax" - year-round or seasonal - on items that are part of the existing sales tax base. The municipal tax would be collected and administered by the State in the same manner as the existing sales and use tax.

For the hospitality industry, any municipal sales tax to be collected from consumers would be in addition to the existing 9% rooms and meals tax.

Industry group Hospitality Maine opposes the municipal tax, for obvious reasons.

A hearing on the bill will be held in Augusta on the afternoon of Wednesday, 27 March.