My sister is in a nursing home in Bangor. I manage her affairs and have been told that the new “no new tax” state budget contains a so-called gross receipts tax. This tax will be applied to each patient in a nursing home at a 7-percent monthly rate.
Since the daily cost of a nursing home is about $117 that would amount to an additional $243 each month added to her expenses $3,000 more per year. This is a tax on room, board, and services. Each time a nursing home person gives her a bath or her medication that service will be taxed at 7 percent. The nursing facility already pays 6-percent sales tax on all its purchases like any other business.
The door is now open for a gross receipts tax to be applied on any service such as those provided by doctors and lawyers, etc.
This tax is another burden on those who pay their own expenses. They already pay an unequal daily amount to help carry the cost of Medicaid patients.
The message we are sending is, don’t work, don’t save any money, do not prepare to take care of yourself when you become infirm, spend it all because if you don’t the state legislature will take it. Harriet Tilley Bangor