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% 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% 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 1/2% 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 §1811, as amended by PL 1995, c. 281, §§18 and 19 and affected by §42, is further amended by adding a new 2nd paragraph to read:

A tax is imposed at the rate of 5 1/2% on the value of prepared food sold for off-premises consumption in an establishment that is licensed for on-premises consumption of liquor pursuant to the Maine Revised Statutes, Title 28-A, chapter 43 if the prepared food is sold in an area separate from where liquor is served.

SUMMARY

This bill sets the sales tax at the rate of 5 1/2% on the sale of prepared food for take out sold at an establishment licensed to serve liquor if the food is sold in an area separate from the area where liquor is being served.