Maine allows certain municipalities to impose local option taxes in addition to the state sales tax. In Portland, for example, an additional 1% local tax is levied, bringing the total sales tax rate to 6.5%. This higher rate affects businesses by increasing the overall tax burden on sales within city limits, necessitating adjustments in pricing strategies and accounting practices. Businesses operating in multiple locations must be vigilant in applying the correct tax rates based on each municipality's regulations. Additionally, understanding these local variations is crucial for accurate tax collection and compliance, ensuring that businesses avoid penalties for incorrect tax remittance.