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 Executive Director of Bureau of Revenue Services.__Beginning October 1, 2005, on the last day of each month, the Executive Director of the Bureau of Revenue Services within the Department of Administrative and Finanical Services shall transfer to the fund an amount equal to 30% of the receipts from the lodging tax credited to the General Fund.__ Beginning November 2005, on the 27th day of each month, the executive director 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 2005, 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 Executive Director of the Bureau of Revenue Services within the Department of Administrative and Financial Services.

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.

Sec. 2. 36 MRSA §1811, first ¶, as amended by PL 2001, c. 439, Pt. TTTT, §2 and affected by §3, 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% 10% 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