PORTLAND, Maine (AFP) – The independent Maine state senator has joined an effort to try to help auto dealerships deal with supply chain difficulty.
Senator Angus King said agents in his state are facing higher costs and limited inventory due to supply chain disruptions. He said he’s co-sponsoring a bill that introduces a tax adjustment to agencies that can’t maintain a minimum inventory.
King said the suggestion stems from the fact that many auto dealers use a “last in first out” inventory method. This method can lead to a large tax bill for merchants who do not keep a minimum inventory at the end of the year, he said.
However, the COVID-19 pandemic has caused a shortage of cars for sale. King said the tax rule change “will provide a much-needed temporary relief to small car companies across our state that are working to keep their doors open and support their employees.”
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