PORTLAND, Maine (AP) — Maine’s independent senator has joined an effort to try to help car dealerships cope with supply chain difficulty.
Sen. Angus King said dealerships in his state are facing higher costs and limited inventory due to supply chain disruption. He said he is co-sponsoring a bill that would offer a tax adjustment for dealerships that can’t maintain a minimum amount of inventory.
King said the proposal stems from the fact many car dealers use a “last in, first out” inventory method. The method can result in a large tax bill for dealers that don’t maintain a minimum level of inventory at year’s end, he said.
However, the COVID-19 pandemic has created a shortfall in vehicles for sale. King said changing the tax rules would “provide much needed temporary relief to the small auto businesses across our state that are working to keep their doors open and support their employees.”
Source: AP News