Maine's discretionary taxes on lodging (increasing from 9% to 9.5% in 2024) and prepared food (increasing from 8% to 8.5%) have a significant impact on the tourism and restaurant sectors. These tax increases raise the overall cost of services for consumers, potentially affecting demand for lodging and dining. Hotels, motels, bed and breakfasts, restaurants, and catering services must adjust their pricing to accommodate the higher tax rates, which may influence customer spending and business profitability. Additionally, increased taxes require these businesses to implement accurate tax collection and reporting systems to comply with state regulations, adding to operational complexities and costs. Overall, these tax changes could influence competitiveness, pricing strategies, and profitability within these industries.