Sec. B-5. 36 MRSA c. 216 is enacted to read:

CHAPTER 216

LIMITED LOCAL OPTION SALES TAX

§1871.__Local option sales tax authority

1.__Authority.__Beginning January 1, 2004, the legislative body of a municipality, subject to the requirements of this chapter, may elect to adopt within the municipality a limited sales tax of 1% or 2% of the value of prepared food and lodging sold in the municipality.

2.__Definitions.__As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.

A.__"Lodging" means the rental of living quarters in any hotel, rooming house or tourist or trailer camp.

B.__"Prepared food" has the same meaning as in section 1752, subsection 8-A.

§1872.__Referendum required

1.__Adoption.__The adoption of a limited sales tax in a municipality must be approved by the legal voters of a municipality that seeks to adopt the 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 town or plantation has not accepted the provisions of Title 30-A, section 2528.__The voting at elections held in municipalities must be held and conducted in accordance with Title 21-A, and the referendum must take place at a municipal general election with a turnout equal to or greater than 30% of the votes cast in the municipality in the last gubernatorial election or at the last general election.__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 State Tax Assessor.__