An Act To Improve the Business Equipment Tax Reimbursement Program
Maine Legislature, Session 122, LD 1557
Committee: Taxation
Sponsors: STRIMLING, HUTTON, BROMLEY, PERRY, PINEAU, WATSON
Amends: 36 MRSA §6651, 36 MRSA §6652

Legislative Document 
No. 1557 
S.P.541 
In Senate, April 7, 2005 
An Act To Improve the Business Equipment Tax Reimbursement 
Program 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Senator STRIMLING of Cumberland. 
Cosponsored by Representative HUTTON of Bowdoinham and 
JOY J. O'BRIEN 
Secretary of the Senate 
Senators: BROMLEY of Cumberland, PERRY of Penobscot, Representatives: PINEAU of Jay, 
WATSON of Bath. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRSA §6651, sub-§I, as amended by PL 2001, c. 396, 
§43, is further amended to read: 
1. 
Eligible property. 
"Eligible property" means qualified 
business property first placed in service in the State, 
or 
constituting construction in progress 
commenced in the State, 
after 
April 
1, 
1995 
but 
before 
April 
L 
2007_. 
"Eligible 
property" includes, without limitation, repair parts, replacement 
parts, additions, accessions and accessories to other qualified 
business property placed in service on or before April 1, 1995 if 
the part, addition, accession or accessory is first placed in 
service, or constitutes construction in progress, in the State 
after 
April 
1, 
1995 
but 
befOre 
April 
L 
2007. 
"Eligible 
property" also includes inventory parts. 
Sec. 2. 36 MRSA §6652, sub-§ 1, as amended by PL 2003, c . 391, 
§12, is further amended to read: 
1. 
Generally. 
A person against 
whom 
taxes 
have 
been 
assessed pursuant to Part 2, except for chapters III and 112, 
with respect to eligible property and who has paid those taxes is 
entitled to 
reimbursement of 
those 
taxes 
from 
the State as 
provided in this chapter to the extent that those taxes have not 
been returned to the taxpayer by 
a municipality due to the 
taxpayer's participation in 
a 
municipal 
development district 
pursuant to Title 30-A, chapter 206, subchapter 1. 
The combined 
reimbursement under this chapter and Title 30-A, chapter 206, 
subchapter 
may 
not exceed 
90~ of 
the 
assessed taxes 
for 
eligible property. 
For purposes of this chapter, a tax applied 
as a credit against a tax assessed pursuant to chapter III or 112 
is a 
tax assessed pursuant to chapter III or 112. 
Eligible 
property is subject to reimbursement pursuant to this chapter for 
up to 
l~ .lQ. property tax years, but the 
l~ 10 years must be 
reduced by one year for 
each year during which 
a 
taxpayer 
included the same property in its investment credit base under 
section 5219-D, 5219-E or 5219-M and claimed the credit provided 
in one or more of those sections on its income tax return, and 
reimbursement may not be made for taxes assessed in a year in 
which one or more of those credits is taken. 
A successor in 
interest of a person against whom taxes have been assessed with 
respect 
to 
eligible 
property 
is 
entitled 
to 
reimbursement 
pursuant to this section, whether the tax was paid by the person 
assessed or by the successor, 
as long as a transfer of the 
property in question to 
the 
successor has occurred and 
the 
successor is the owner of the property as of August 1stT of the 
year in which a claim for reimbursement may be filed pursuant to 
section 6654. 
For purposes of this paragraph, 
"successor in 
interest" 
includes 
the initial 
successor 
and 
any 
subsequent 
successor. 
When an eligible successor in interest exists, the 
successor is the only person to whom reimbursement under this 
chapter may be made with respect to the transferred property. 
Sec. 3. Creation of small business tax assistance program. 
The 
Department 
of 
Economic 
and 
Community 
Development 
and 
the 
Department 
of 
Administrative 
and 
Financial 
Services, 
Maine 
Revenue Services jointly shall develop a program to assist small 
businesses with the payment of taxes incurred under the Maine 
Revised Statutes, Title 36. 
The program must be needs-based, be 
available only to small businesses and provide for a rebate of 
taxes paid by the small businesses. 
Funding for the program must 
come from the savings generated by eliminating the reimbursement 
of property taxes under the Business Equipment Tax Reimbursement 
program and 
a 
tax increment financing district agreement and 
limiting the 
amount 
and 
length of 
reimbursement pursuant to 
sections 1 and 2 of this Act. 
The department and Maine Revenue Services shall report by 
December 15, 
2005 to the Second Regular Session of the 122nd 
Legislature with their recommendations and necessary implementing 
legislation. 
SUMMARY 
This bill prohibits reimbursement of property taxes under 
the Business Equipment Tax Reimbursement program if the taxes 
also are reimbursed under 
a 
tax increment financing district 
agreement for property first placed into service on or after 
April 1, 2007. 
This bill also limits the reimbursement to 90~ of 
the assessed taxes and reduces the number of years property is 
eligible for 
reimbursement 
from 
years 
to 
years. 
The 
savings 
generated 
by 
the 
elimination 
of 
this 
so-called 
"double-dip" must be used to fund a new program created jointly 
by the Department. of Economic and Community Development and the 
Department 
of 
Administrative 
and 
Financial 
Services, 
Maine 
Revenue Services to provide tax assistance to small businesses 
based on need.