Sec. 1. 5 MRSA §13090-K is enacted to read:

§13090-K.__Tourism Marketing Promotion Fund

1.__Fund established.__The Tourism Marketing Promotion Fund is established in the Office of Tourism and Community Development as a nonlapsing dedicated account.

2.__Source of fund.__On or before July 31, 2002, the State Controller shall transfer $6,842,290 from General Fund unappropriated surplus to the Tourism Marketing Promotion Fund.__ Beginning July 31, 2003 and the last day of each subsequent month, the State Controller shall transfer to the Tourism Marketing Promotion Fund an amount equal to 5% of the sales tax revenues imposed at 7% pursuant to Title 36, section 1811 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; on the value of rental of living quarters in any hotel, rooming house or tourist or trailer camp; and on the value of prepared food collected in the previous month after the reduction for the transfer to the Local Government Fund as described in Title 30-A, section 5681, subsection 5.__The tax amount must be based on actual sales for that fiscal year and may not consider any accruals that may be required by law.__The amount transferred from General Fund sales tax revenues does not affect the calculation for the transfer to the Local Government Fund.

3.__Restrictions on expenditures.__The Maine Tourism Commission, established by section 12004-I, subsection 87, shall review and approve the annual budget of the Tourism Marketing Promotion Fund.__A minimum of 10% of the funds received by the Tourism Marketing Promotion Fund in accordance with subsection 2 must be used for regional marketing promotion and regional special events promotion.

Sec. 2. 36 MRSA §1811, first ¶, as amended by PL 1999, c. 401, Pt. X, §1 and affected by §5, 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, or 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 5% on the value of all other tangible personal property and taxable