Revenues would be used to fund the Maine Department of Education.

A bill introduced into the Maine House - LD 225 (HP 148) - by Rep. Michael Brennan (D-Portland) with numerous cosponsors would create an additional 3% lodging tax - on top of the current 9% - with the proceeds going to the Maine Department of Education to fund school construction and K-12 education.

The new tax would become effective 1 January 2026.

Per the title of this Bill, one purpose is to "reduce property taxes," but it's not clear how that would necessarily come about.

At 12%, Maine's state lodging tax rate would be second-highest in the US.

And at least in part for reasons related to the US economy, visitation to Maine was down by 9% year-on-year in the summer of 2024.

Because a higher lodging tax rate puts Maine lodging places at a competitive disadvantage to other destinations, the Maine Tourism Association opposes this legislation.