In Maine, excise taxes and discretionary taxes serve different purposes and apply to various sectors:

Excise Taxes:

• Definition: Taxes levied on specific goods such as motor vehicles, boats, and aircraft, based on factors like price, age, and type.

• Impact: Owners of these goods must pay annual excise taxes, which can affect the cost of ownership. Businesses selling or leasing these items need to account for excise taxes in their pricing and financial planning.

Discretionary Taxes:

• Definition: Taxes imposed on services like lodging (hotels, motels, B&Bs) and prepared food and beverages (restaurant meals, catering).

• Impact: These taxes directly affect the hospitality and food service industries by increasing operational costs. Businesses must adjust their pricing and ensure proper tax collection, potentially impacting competitiveness and profitability.

Overall, excise taxes target ownership of specific goods, while discretionary taxes focus on particular services, requiring businesses in these sectors to incorporate these taxes into their financial strategies and compliance efforts.