Sec. 1. 36 MRSA §1760, sub-§88 is enacted to read:

88.__Processing fees.__Processing fees or forfeited advance deposits held by an innkeeper in connection with a cancelled reservation or the failure of a guest to appear at the inn on the scheduled day of arrival.__For purposes of this subsection, "inn" includes a hotel, motel, lodging house and bed and breakfast and any other facility that, for compensation, provides lodging to travelers and others on a temporary basis.

SUMMARY

This bill clarifies the sales tax law to provide a specific exemption from the sales tax for processing fees or forfeited advance deposits held by an innkeeper in connection with a cancelled reservation or the failure of a guest to be present on the scheduled day of arrival.