Sec. 1. 36 MRSA §1951-A, sub-§3 is enacted to read:

3.__Retention of 1%.__A retailer that collects tax under this Part and that files reports and makes payment under this section in a timely manner may retain 1% of the amount collected as compensation for the costs of collecting the tax.__ Notwithstanding section 187-B, for the first 10 days that a report or payment of tax under this Part is late, the loss of the retention otherwise permitted by this subsection is the sole penalty.

SUMMARY

This bill permits retailers to retain 1% of sales tax collections as a compensation for the costs of collecting the tax. A retailer that files a late report or makes a late payment may not retain the 1%. For the first 10 days that a report or payment is late, the loss of the retention is the sole penalty.