News

Maine Sales Tax Threatens Your Bottom Line!!

By: JJones, 5/14/13

Imagine having to remit at least 5.0% of your gross sales to the state of Maine each year, without being able to collect this tax from customers on a daily basis.

What’s the threat?
Like most states, Maine currently exempts coin laundries from collecting sales tax. With LD 1496, a tax reform bill has been introduced to the Maine legislature would broaden the sales tax base to include presently-exempt industries, including self-serve laundries. This could mean that all laundry owners will remit more than 5.0% of gross sales to the state each year, costing the average owner $5,000 – $10,000 per year!

What’s New England Coin Laundry Association (NECLA) doing to help?
As soon as word came that sales tax reform was underway, NECLA engaged a lobbyist to protect the sales tax exemption for Maine laundry owners. The same lobbyist who kept us exempt during the 2007 threat is back on the job to protect you. At the bill hearing on May 9th, we were able to submit written testimony supporting the exemption for self-service laundry. As the legislature continues to debate the best path forward for tax reform, all Maine laundry owners need this representation to ensure that the exemption remains in place. Time is of the essence with only a few weeks remaining in the legislative session.

Of course, effective representation comes at a cost. While the campaign mounted in 2007 had a cost of more than $18,000, this year’s fees will be $4,000 because of our prior experience with the issue. These dollars need to be raised by the Maine laundry owners to make sure that the exemption remains in place. This is a small price to pay to protect your future profits!

What can I do to help?
1. There is strength in numbers! The most immediate need is fundraising. NECLA is asking for a contribution of $250 to $500 for each laundry you own. This is a wise investment when considering the sales tax will cost the average laundry owner $5,000 to $10,000 per year – every year! To contribute, send checks made out to NECLA: NECLA, P.O. Box 56, Danvers, MA 01923.
2. Reach out to your legislators and let them know (politely!) what impact losing the sales tax exemption would have on your business. You can play an important role in educating your representatives about this critical issue.
3. If you are not yet a member of Coin Laundry Association and NECLA, protect your livelihood by visiting www.coinlaundry.org or call 800-570-5629 to become part of our community.