Sec. 1. 36 MRSA §1754-B, sub-§4 is enacted to read:

4.__Collection allowance.__A person that is required to register pursuant to this section and that collects and remits taxes in accordance with the provisions of this Part may deduct and retain a portion of those taxes as a collection allowance for the purpose of reimbursing that person for collecting taxes, keeping records, preparing and filing returns, remitting taxes and supplying data to Maine Revenue Services on request.

A.__A collection allowance deducted and retained by a person pursuant to this subsection may equal up to 2.5% of the taxes collected by that person during the reporting period but may not exceed $50 per month per business.__If a business registered pursuant to this section has more than one location, only one of the affiliated businesses may qualify for the collection allowance.__For purposes of this paragraph, "affiliated businesses" are those owned by the same person or entity.

B.__The collection allowance does not apply to taxes collected by a state, county or municipal agency.

SUMMARY

This bill permits persons that are required to register under Maine's sales and use tax law to deduct and retain an amount equal to up to 2.5% of the sales and use taxes they collect, but not exceeding $50 per month per affiliated business, as reimbursement for the expenses they incur in the collection of sales and use taxes on behalf of the State.