An Act To Clarify the Sales Tax Exemptions Regarding Assisted Housing Programs
Maine Legislature, Session 121, LD 1718
Committee: Taxation
Sponsors: MAYO, DUDLEY, LaFOUNTAIN, DAVIS, KOFFMAN, MAILHOT, O'NEIL, RICHARDSON, SUSLOVIC, WATSON
Amends: 36 MRSA §1760

Legislative Document 
No. 1718 
S.P.650 
In Senate, December 17, 2003 
An Act To Clarify the Sales Tax Exemptions Regarding Assisted 
Housing Programs 
(EMERGENCY) 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Received by the Secretary of the Senate on December 16, 2003. Referred to the Committee 
on Taxation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401. 
Presented by Senator MAYO of Sagadahoc. 
Cosponsored by Representative DUDLEY of Portland and 
JOY J. O'BRIEN 
Secretary of the Senate 
Senator: LaFOUNTAIN of York, Representatives: DAVIS of Falmouth, KOFFMAN of Bar 
Harbor, MAILHOT of Lewiston, O'NEIL of Saco, RICHARDSON of Brunswick, SUSLOVIC 
of Portland, WATSON of Bath. 
Printed on recycled paper 
Emergency preamble. Whereas, Acts of the Legislature do not 
become effective until 90 days after adjournment unless enacted 
as emergencies; and 
Whereas, sales to residential care facilities are exempt 
from sales tax; and 
Whereas, recent changes to the law differentiated between 
residential care facilities and assisted housing programs for the 
elderly; and 
Whereas, these 
changes 
have 
led to 
some 
whether assisted housing programs for the elderly 
the sales tax; and 
ambiguity 
over 
are exempt from 
Whereas, it is vital that this ambiguity be dealt with as 
soon as possible to prevent 
harm 
to 
those assisted housing 
programs; and 
Whereas, in the judgment of the Legislature, these facts 
create an emergency within the meaning of the Constitution of 
Maine 
and 
require 
the 
following 
legislation 
as 
immediately 
necessary for the preservation of the public peace, health and 
safety; now, therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRSA §1760, sub-§16, as amended by PL 1999, c. 708, 
§25, is further amended to read: 
16. 
Hospitals, 
research centers, 
churches 
and 
schools. 
Sales to incorporated hospitals, incorporated nonprofit nursing 
homes licensed by the Department of Human Services, incorporated 
nonprofit 
residential 
care 
facilities 
and 
assisted 
housing 
programs for the elderly licensed by the Department of Human 
Services, incorporated nonprofit home health agencies certified 
under the United States Social Security Act of 1965, Title XVIII, 
as amended, incorporated nonprofit rural community health centers 
engaged 
in, 
or 
providing 
facilities 
for, 
the 
delivery 
of 
comprehensive primary health care, incorporated nonprofit dental 
heal th 
centers, 
insti tutions 
incorporated 
as 
nonprof it 
corporations for the sole purpose of conducting medical research 
or for the purpose of establishing and maintaining laboratories 
for scientific study and investigation in the field of biology or 
ecology or operating educational television or radio stations, 
schools, incorporated nonprofit organizations or their affiliates 
whose purpose is to provide literacy assistance or free clinical 
assistance to children with dyslexia and 
regularly organized 
churches or houses of religious worship, excepting sales, storage 
or use in activities that are mainly commercial enterprises. 
"Schools" means incorporated nonstock educational institutions, 
including institutions empowered to confer educational, literary 
or academic degrees, that have a regular faculty, curriculum and 
organized body of pupils or students in attendance throughout the 
usual school year and that keep and furnish to students and 
others records required and accepted for entrance to schools of 
secondary, 
collegiate or graduate 
rank, 
no 
part of the net 
earnings of which inures to the benefit of any individual. 
Emergency clause. 
In view of the emergency cited in the 
preamble, this Act takes effect when approved. 
SUMMARY 
This 
bill 
clarifies 
that 
sales 
made 
to 
incorporated 
nonprofit assisted housing programs for the elderly licensed by 
the Department of Human Services are exempt from taxation.