FAYETTE — A public hearing on a bill by Sen. Tom Saviello, R-Wilton, to eliminate a tax on meals for nonprofit organizations will be held Thursday in Augusta.
It will be held at 1 p.m. in Room 127 of the State House.
Saviello addressed the issues with selectmen Monday and credited Livermore Falls Advertiser staff writer Pam Harnden for her research and bringing the issue to his attention, as well as American Legion member Don Simoneau of Fayette.
What occurred, Saviello said, was the Maine Revenue Service was interpreting the current law to mean that every meal for every nonprofit should be taxed. This means that not only does a tax need to be charged, but the organizations also need a cash register to make out receipts to provide proof that they collected the tax. Although most Maine nonprofit organizations haven’t been charging the meal tax, they could be forced to do so because of how the law is written, Saviello said.
“I think it’s an unintended consequence of the meal tax,” Saviello said.
As an example of the nonprofits affected, he cited the Fayette Keep Me Warm suppers. Through the years, the community has held weekly suppers during the winter to raise money for fuel assistance for the needy in town.
“It’s a great social event because this time of year, people are cooped up,” Saviello said.
Fayette is in Saviello’s legislative district. He suggested that selectmen make a resolution supporting the elimination of the meal tax.
The board voted unanimously to do so.
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