An Act To Repeal the Property Tax Exemption for State and Municipal Property
Maine Legislature, Session 122, LD 0264
Committee: Taxation
Sponsors: PERRY
Amends: 36 MRSA §651, 38 MRSA §1304-B

Legislative Document 
No. 264 
S.P.84 
In Senate, January 18, 2005 
An Act To Repeal the Property Tax Exemption for State and 
Municipal Property 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Senator PERRY of Penobscot. 
Printed on recycled paper 
JOY J. O'BRIEN 
Secretary of the Senate 
Be it enacted by the People of the State of Maine as follows: 
Sec. I. 36 MRSA §651. sub-§I. as amended by PL 1981, c. 595, 
§4, is further amended to read: 
1. 
Public property. 
A. 
The property of the United States so far as the taxation 
of such property is prohibited under the Constitution and 
laws of the United StatesTL 
B-1. 
Real estate owned by the Water Resources Board of the 
State of New Hampshire and used for the preservation of 
recreational facilities in this StateT; and 
C. 
All property wRieR that by the Articles of Separation is 
exempt from taxation. 
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Sec. 2. 38 MRSA §1304-B. sub-§5, as amended by PL 1995, c. 81, 
§1, is further amended to read: 
5. 
Pub1ic waste disposa1 corporations. 
Notwithstanding any 
law, charter, ordinance provision or limitation to the contrary, 
pursuant to any inter local agreement entered into in accordance 
with Title 30-A, chapter 115, any 2 or more municipalities may 
organize or cause to be organized or may participate in one or 
more corporations organized as nonprofit corporations under Title 
13, 
chapter 
81, 
or Title 13-B for 
the purpose, 
among other 
permissible purposes, 
of owning or operating anyone or more 
waste facilities described in subsection 4, paragraph A, 
and a 
subscribing 
municipality 
may 
agree 
in 
any 
such 
interlocal 
agreement to pay fees, assessments or other payments as described 
in subsection 4, paragraph B, for such term of years and on such 
other 
terms 
as 
the inter local 
agreement 
may provide 
and 
may 
pledge the full faith and credit of the municipality to the same 
extent provided in subsection 4, 
paragraph C. 
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±i~le-~~7-~~~~~~~-~-~-~r-~a~~~a~a-QT The applicable 
interlocal agreement or the articles of incorporation or bylaws 
of the corporation must provide that: 
A. 
The 
corporation 
must 
be 
organized 
and 
continuously 
thereafter operated as a nonprofit corporation, no part of 
the net earnings of which may inure to the benefit of any 
member, director, officer or other private person; 
B. 
The directors of the corporation must be elected by the 
municipal officers of the municipalities participating ln 
the corporation; and 
C. 
Upon 
dissolution or liquidation of 
the 
title to all of its property vests in one or 
municipalities participating in the corporation. 
corporation, 
more of the 
Any interlocal agreement complying with the requirements of this 
subsection and subsection 6 must be a properly authorized, legal, 
valid, binding and enforceable obligation of the municipality, 
regardless of whether the agreement was authorized, executed or 
delivered 
prior 
to 
or 
after 
the 
effective 
date 
of 
this 
subsection. Any corporation organized in a manner that satisfies 
the requirements set forth in this subsection and subsection 6, 
whether organized prior to or after the effective date of this 
subsection, is deemed for all purposes as organized pursuant to 
this subsection. 
If so provided in the applicable inter local 
agreement, any such corporation has the power, in addition to any 
other powers that may be delegated under Title 30-A, chapter 115, 
to 
issue, 
on 
behalf 
of 
one 
or 
more 
of 
the 
municipalities 
participating 
in 
the 
corporation, 
in 
order 
to 
finance 
the 
facilities, 
revenue obligation securities issued in accordance 
with Title 10, chapter 110, subchapter IV 1, and any other bonds, 
notes or debt obligations that municipalities are authorized to 
issue by applicable law. For these purposes, the term "municipal 
officers" as used in Title 10, 
chapter 110, 
subchapter 
IV 4, 
means the board of directors of any corporation described in this 
subsection. 
Title 10, section 1064, 
subsection 6, 
may not be 
construed to prohibit the 
assignment or pledge 
as collateral 
security of any contract of a municipality authorized by this 
section or of any or all of the payments under this section, 
regardless of whether the provisions of subsection 4, paragraph 
C, are applicable to the contract or payments. 
The provisions of 
Ti tle 10, sections 1063 and 1064, sUbsection 1, paragraph A and 
paragraph C, subparagraph (4) do not apply to revenue obligation 
securities 
issued 
by 
any 
public 
waste 
disposal 
corporation 
described in this subsection. 
SUMMARY 
This bill repeals the exemption 
from taxation given for 
property owned by the State or a municipality.