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Tax Increases Take Affect Today

Photo by Jim Marston

You might notice the cost of your cup of coffee this morning was slightly higher. It’s all due to the sales tax increase that takes affect starting today in Maine, it goes from 5% to 5.5%. The meals and lodging tax will increase from 7% to 8%.This is ‘a temporary’ tax increase that is set to expire in June 2015.

Food-based groceries will continue to be tax exempt.

Here’s an example on how the new tax will affect you.

  • A $50 restaurant bill will be taxed $4 instead of $3.50
  • $100 spent on new clothes will be taxed $5.50 instead of $5
  • $299 for a hotel weekend will see a tax increase from $20.93 to $23.92

Another change starting today with Maine taxes is periodicals will be taxed 5.5%. That means newspapers, magazines and other regular publications will be taxed.

Will the higher sales tax make you tighten your belt even more?

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