5.__Use of local sales and use tax revenue.__The revenue raised by the adoption of a local option sales and use tax must be expended by the municipality in the same manner that the municipality expends general purpose aid for local schools under Title 20-A, chapters 606 and 606-A.

6.__Referendum.__The question of whether to impose a local option sales and use tax must be submitted to the legal voters of a municipality that seeks to impose the local option sales and use tax.

The petition process and the voting at elections held in towns and plantations must be held and conducted in accordance with Title 30-A, sections 2528, 2529 and 2532 even if the municipality has not accepted the provisions of section 2528.__ The voting at

elections in municipalities must be held and conducted in accordance with Title 21-A.

The municipal clerk shall make a return of the results, certify the results and send them to the Secretary of State.__ The Secretary of State shall forward the results to the assessor.

The local option sales and use tax may be discontinued by referendum conducted in the same manner as is the referendum adopting the tax under this section.

7.__Effective date of tax.__The tax authorized by this section takes effect 120 days after the municipal referendum vote if it is accepted by a majority of the local voters voting at the election and the total number of votes cast for and against the acceptance of the local option sales and use tax equals or exceeds 20% of the total number of votes cast in that municipality in the most recent gubernatorial election.

Sec. 4. 36 MRSA §5116 is enacted to read:

§5116.__Local option income tax

1.__Municipalities authorized to adopt.__If the legal voters of a municipality give their approval in a referendum vote, the legislative body of that municipality may impose a local option income tax__on the income of a taxpayer subject to the tax