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Senators Bartlett and Bromley Urge Favorable Ruling for Cabela's Retail Project

August 30, 2006

AUGUSTA–Senators Phil Bartlett, D-Cumberland County, and Lynn Bromley, D-Cumberland County, are urging the Maine Revenue Services to support the request by Cabela’s Retail, Inc. for a ruling that it’s presence in Maine would not trigger an obligation on the part of separate companies, Cabela’s Catalog, Inc. and Cabelas.com, Inc. to collect sales tax from Maine customers.

"Maine is not currently collecting tax from these sales,” said Bartlett. "Joining with many other states in interpreting federal law to maintain the status quo would allow Cabelaâs Retail, Inc. to bring hundreds of jobs to Maine and generate millions of dollars in new tax revenue."

Responding to criticism that Cabela's Retail, Inc. is seeking special treatment, Senator Bromley said, "Call it smart or call it clever, Cabela's has structured their business model to address the issue of sales tax collection. This ruling from the Maine Revenue Services would not be specific to Cabela's Retail, Inc., but would apply to any company that chose to structure its business in the same way."

Bartlett added, "We routinely provide tax exemptions and provide other incentives to bring businesses to Maine , so a reluctance to give up zero dollars to attract good paying jobs with outstanding benefits is hard for me to understand."
Bromley concluded, "Nineteen other states have ruled favorably and are in agreement with Cabela’s position. I really don’t want Maine hanging out there as the only New England State to say 'No'."