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December 23, 2015

New Maine tax rules favor bagels over doughnuts

Look for some oddities in your grocery bill starting Jan. 1, when new Maine taxes, for example, will slap a sales tax on salsa, but not on powdered dip mix.

The tax changes are part of the two-year budget passed earlier this year by the Maine Legislature.

While the budget was heralded as providing income and property tax relief when it was announced In June, it also broadened sales and meals taxes to capture more food products, the Bangor Daily News noted.

The newspaper quoted Maine tax department spokesman David Heidrich as saying the changes should generate $9.5 million in revenue in 2016.

Meantime, watch for a higher tab on items like six or more doughnuts (although six or more bagels are exempt). Salted peanuts will be taxed, but not peanut butter or raw nuts. Marshmallow Fluff fans will have to pay more, but their jam won’t be taxed.

To see which of your favorite items may fall under the new tax rules, see this Maine Revenue Services report.

 

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