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Gov. LePage Vetoes Bill Calling for Internet Tax Sales Study

(USGovernment-News.Com, May 27, 2013 ) San Francisco, CA -- Mike Allen, the state’s associate commissioner for tax policy, estimated that Maine is losing up to $25 million a year in use taxes that are not being collected. Use taxes are sales taxes that are due when a customer buys a good or service from retailers in another state, including online retailers.



This has become a growing concern all over the country as online retailers, such as iTunes, Amazon, and others do not require purchasers to pay sales tax according to whatever state they buy or sell from.



Although LD 39 was enacted by unanimous vote on May 7, Governor LePage wrote a veto letter to lawmakers that said joining the federal agreement would add to the bureaucracy in an area where Maine should be free to make its own decisions regarding consumers and taxes.



While it’s useful as a guide, LePage says, it would tie up value resources in the state’s government. He argues that if legislature wants to pursue the study, they should do so by looking into its own office for fiscal review.



However, proposers and authors of the bill say it would be much more of a burden to on the Legislature’s Office of Fiscal and Program Review than it would for Main’s Revenue Service. MRS has already been tracking some of the data that would be needed for the study. They could do it without additional work.



Allen said estimated that the state could save between $1 and 3 million under the new state coalition, and up to $25 million with the new federal law.



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