A public hearing on tax reform legislation will be held Thursday, April 2, at 1 p.m. in Room 127 of the State House. It is rumored that some business groups may support the proposal, which sets a flat rate of 6.5 percent for the personal income tax and abolishes the alternative minimum tax, but expands the sales tax to numerous services, raises the meals and lodging tax to 8.5 percent, increases the tax to 10 percent on short-term auto rentals (less than one year), and increases the real estate transfer tax to 1 percent of the value of homes sold that exceeds $500,000. Proponents say proposal will provide over $75 million in tax relief to Maine residents. Initial estimates say most Mainers would experience $100 to $500 in tax relief; the average Mainer would experience about $225, less than $20 a month. This relief would not come as a lump sum refund check from the state. Taxpayers would see lower state income tax obligations but higher sales tax expenditures. Download the full list of services to be taxed (50KB, PDF) - From the National Federation of Independent Business