Sec. 1. 30-A MRSA §5686 is enacted to read:

§5686.__Revenue sharing of lodging taxes

1.__Lodging Tax Relief Fund established.__There is established the Lodging Tax Relief Fund, referred to in this section as the "fund," for the purpose of returning a portion of the revenue generated by lodging taxes to the municipalities in which those taxes were collected.__As used in this section, "lodging tax" means the tax imposed pursuant to Title 36, section 1811 on the value of rental of living quarters in any hotel, rooming house or tourist or trailer camp.

2.__Amount of transfer; duties of Treasurer of State.__ Beginning October 1, 2001, on the last day of each month, the Treasurer of State shall transfer to the fund an amount equal to 25% of the receipts from the lodging tax credited to the General Fund.__Beginning November 2001, on the 28th day of each month, the Treasurer of State shall distribute the balance in the fund to the municipalities based on the information provided by the State Tax Assessor pursuant to subsection 3.

3.__Duties of State Tax Assessor.__Beginning November 2001, by the 25th day of each month, the State Tax Assessor shall calculate the amount of the lodging tax collected in each municipality and the amount to be returned to each municipality pursuant to subsection 2 and provide the calculation to the Treasurer of State.

4.__Plantation and unorganized territory.__For purposes of this section, plantations and the unorganized territory are treated as if they were municipalities.

5.__Indian territory.__For purposes of this section, the Passamaquoddy Tribe and the Penobscot Nation Indian territories are treated as if they were municipalities.

SUMMARY

This bill returns 25% of the sales tax imposed on lodging to the municipalities in which those taxes were levied.