AUGUSTA — Gov. Paul LePage has decided not to sign a bill that would have exempted nonprofits from charging sales tax on fundraising meals.

Without the governor’s signature, the bill will not become law. Theoretically, a nonprofit still must pay an 8 percent meal tax to the state on monthly fundraising suppers and a 5.5 percent sales tax on money from rummage sales held more than twice a year.

Sen. Tom Saviello, R-Wilton, submitted the emergency legislation after learning nonprofits are liable for collecting and submitting meals and sales taxes on those activities. While some organizations knew of the law and were doing so, many others were not.

Saviello on Wednesday advised nonprofits not to worry.

“Don’t call Maine Revenue Services; don’t ask,” Saviello said. “Continue as you have been doing. I don’t think they’ll come looking.”

Saviello said he would resubmit the bill in January 2017.

“I’ll expedite it quickly so we can override a veto if need be,” he said.

The Joint Standing Committee on Taxation unanimously supported an amended version of the bill, but fiscal notes of almost $2 million were attached to it.

Saviello worked closely with the governor’s office and Maine Revenue Services to reduce or eliminate the fiscal notes.

Additional amendments were attached to the bill so that catered events and those where alcohol were served would not be exempt from tax liability. Another amendment provided exempt status only 23 days per year.

Those amendments would have reduced the fiscal note to $35,000. Staff at Maine Revenue Services said that loss could be absorbed.

The amended bill was approved by both the Senate and the House on April 29. It then went to the governor for his signature.

“I have no understanding of why the governor didn’t sign the bill,” Saviello said. “We did everything we could.”

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