Sec. 1. 36 MRSA §1811, first ¶, as amended by PL 1993, c. 701, §6 and affected by §10, is further amended to read:

A tax is imposed on the value of all tangible personal property and taxable services sold at retail in this State. The rate of tax is 7% 5% on the value of liquor sold in licensed establishments as defined in Title 28-A, section 2, subsection 15, in accordance with Title 28-A, chapter 43; 7% on the value of rental of living quarters in any hotel, rooming house, tourist or trailer camp; 10% on the value of rental for a period of less than one year of an automobile; 7% 5% on the value of prepared food sold in establishments that are licensed for on-premises consumption of liquor pursuant to Title 28-A, chapter 43; and 6% 5% on the value of all other tangible personal property and taxable services. Value is measured by the sale price, except as otherwise provided.

Sec. 2. 36 MRSA §1812, sub-§1, ¶A, as repealed and replaced by PL 1991, c. 591, Pt. XX, §3 and affected by §§7 and 8, is repealed and the following enacted in its place:

A.__If the tax rate is 5%:

Amount of Sale Price________________ Amount of Tax

$0.01 to $0.10, inclusive__________________0¢

.11 to__ .20, inclusive__________________1¢

.21 to__ .40, inclusive__________________2¢

.41 to__ .60, inclusive__________________3¢

.61 to__ .80, inclusive__________________4¢

.81 to__1.00, inclusive__________________5¢

Sec. 3. Review of tax-exempt status. Every organization that is exempt from the sales tax pursuant to the Maine Revised Statutes, Title 36, section 1760 shall reapply to the Bureau of Revenue Services for exempt status within 120 days of the effective date of this Act. The Bureau of Revenue Services shall review each application to determine the eligibility of the applicant to retain exempt status pursuant to Title 36, section 1760. The applicant retains exempt status during the pendency of the application as long as the application is timely filed. The Bureau of Revenue Services shall revoke the exempt status of any organization that fails to reapply for exempt status within 120 days of the effective date of this Act and may not restore exempt status to the applicant until the bureau determines that the applicant is eligible for exempt status pursuant to Title 36, section 1760.