In 2024, Maine increased the sales tax rates on prepared foods from 8% to 8.5%, and lodging from 9% to 9.5%. These increases have directly impacted the hospitality and food service industries by raising the tax burden on their services. Restaurants, catering services, hotels, motels, and bed and breakfasts must adjust their pricing structures to account for the higher taxes, potentially affecting customer pricing and profitability. The higher rates may influence consumer spending patterns, possibly reducing the frequency of dining out or staying in lodging establishments. Additionally, businesses in these sectors need to ensure accurate tax collection and compliance with the new rates, which may increase administrative efforts and costs.