An Act To Replace Municipal Revenues Subject to Business Equipment Property Tax Exemption
Maine Legislature, Session 122, LD 2056
Committee Amendment CA_A-SA_A_S653 (Senate)
Amends: 36 MRSA §459

SENATE AMENDMENT .;4" to COMMITTEE AMENDMENT "A" to H.P. 1452, 
L.D. 2056, Bill, "An Act To Replace Municipal Revenues Subject to Business Equipment 
Property Tax Exemption" 
Amend the amendment by inserting before section 1 the following: 
'Sec. 1. 36 MRSA §459 is enacted to read: 
§459. State tax on property of nonprofit hospitals 
1. Tax imposed. Notwithstanding section 652, a state tax is imposed on the real and 
personal property of nonprofit hospitals at the rate of 10 mills multiplied by the just value 
of the property. Just value and ownership of the property must be determined as of the 
April 1st preceding the assessment. For purposes of this section, "real and personal 
property of a nonprofit hospital" means the real and personal property owned or leased by 
and occupied or used solely for its own purposes by an incorporated benevolent and 
charitable organization that is exempt from taxation under Section 501 of the Internal 
Revenue Code of 1954, as amended, and the primary purpose of which is the operation of 
a hospital licensed by the Department of Health and Human Services. 
2. Assessment. The State Tax Assessor shall assess a tax on the real and personal 
property of nonprofit hospitals. 
3. Procedure. The tax imposed pursuant to this section must be assessed and paid in 
accordance with this subsection. 
A. The State Tax Assessor shall make the assessment by May 30th of each year. 
B. The tax assessment must be paid no later than the August 15th following the date 
of assessment. 
4. 
Collection. Taxes assessed by the State Tax Assessor must be enforced as 
generally provided by this Title. 
5. Penalty. Underpayment of the tax imposed by this section and the prepayment of 
estimated tax required by this section are subject to the penalties imposed by section 187-
B. 
6. Application of revenues. All revenues received by the State Tax Assessor under 
this section must be credited to a General Fund suspense account. No later than the last 
day of each month, the State Controller shall transfer all revenues received by the 
SENA TE AMENDMENT 
f~. ." 
SENATE AMENDMENT ,4" to COMMITTEE AMENDMENT "A" to H.P. 1452, L.D. 2056 
assessor during the month under this section to the Medical Care - Payments to Providers 
Other Special Revenue funds account in the Department of Health and Human Services.' 
Further amend the amendment by relettering or renumbering any nonconsecutive Part 
letter or section number to read consecutively. 
SUMMARY 
This amendment imposes a tax, at the state level, on the real and personal property 
owned or occupied by nonprofit hospitals at the rate of 10 mills multiplied by the just 
value of the property. 
Revenue generated by the tax is credited to the MaineCare 
program. 
SPONSORED BY: ----JIW.:fQ:.U+r.#~[d&~---
(Senator PERRY, 
COUNTY: Penobscot 
FISCAL \UTE RU2l i ld.D 
(See a!t.~~hed) 
SENATE AMENDMENT 
, 
, 
Approved: 04/28/06 ;t;?ae 
LD2056 
LR 3069(05) 
An Act To Replace Municipal Revenues Subject to Business Equipment Property Tax Exemption 
Fiscal Note for Senate Amendment "A" to Committee Amendment" A" 
Revenue 
Sponsor: Sen. Perry 
Fiscal Note Required: Yes 
Fiscal Note 
Future biennium cost increase - General Fund 
Future biennium revenue decrease - Federal Expenditures Fund 
Future biennium revenue increase - Other Special Revenue Funds 
2005-06 
2006-07 
Projections 
2007-08 
Other Special Revenue Funds 
$0 
$0 
$15,205,794 
Fiscal Detail and Notes 
Projections 
2008-09 
$15,556,968 
This bill will increase Other Special Revenue Funds in the Department of Health and Human Services by 
approximately $15,000,000 annually beginning in fiscal year 2007 -08 as a result of the property tax on nonprofit 
hospitals. If this tax violates federal regulations regarding limitations on health care-related taxes this amendment will 
trigger a reduction in federal Medicaid funds. The Department of Health and Human Services will require additional 
General Fund appropriations equal to the lost Federal Expenditures Fund revenue to support MaineCare program 
costs. 
LR3069(5) - Fiscal Note - Page 1 of 1