An Act To Repeal the Tax on Private Nonmedical Institutions
Maine Legislature, Session 122, LD 0146
Committee: Taxation
Sponsors: DAVIS, DOW, BRYANT-DESCHENES, CRAVEN, MAREAN, TARDY, HASTINGS, NASS, ROSEN, WESTON, WOODCOCK, CARR, EDGECOMB, THOMAS
Amends: 36 MRSA §2552, 36 MRSA §2557, 36 MRSA §2559

Legislative Document 
No. 146 
S.P.52 
In Senate, January 13,2005 
An Act To Repeal the Tax on Private Nonmedical Institutions 
(EMERGENCY) 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Senator DAVIS of Piscataquis. 
JOY J. O'BRIEN 
Secretary of the Senate 
Cosponsored by Senator DOW of Lincoln, Representatives: BRYANT-DESCHENES of 
Turner, CRAVEN of Lewiston, MAREAN of Hollis, McKANE of Newcastle, Representative 
TARDY of Newport and 
Senators: HASTINGS of Oxford, NASS of York, ROSEN of Hancock, WESTON of Waldo, 
WOODCOCK of Franklin, Representatives: CARR of Lincoln, EDGECOMB of Caribou, 
THOMAS of Ripley. 
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, Public Law 2003, chapter 673 imposed a 
5°t> tax on 
services rendered by private nonmedical institutions that provide 
services to 4 or more MaineCare-eligible residents 
and other 
residents in a facility licensed by the Department of Health and 
Human Services: and 
Whereas, the imposition of this tax is harmful 
to such 
institutions and the patients of those institutions; 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 §2552. sub-§I. "E and F, as enacted by PL 
2003, c. 673, Pt. v, §25 and affected by §29, are amended to read: 
E. 
Telecommunications services; and 
F. 
The 
installation, 
maintenance 
or 
repair 
of 
telecommunications equipmentT-aBg~ 
Sec. 2. 36 MRSA §2552, sub-§I, ,G. as enacted by PL 2003, c. 
673, Pt. V, §25 and affected by §29, is repealed. 
Sec. 3. 36 MRSA §2557. sub-§4. as enacted by PL 2003, c. 673, 
Pt. v, §25 and affected by §29, is amended to read: 
4. 
Other 
institutions. 
Sales 
to 
incorporated 
private 
nonprofit residential child care institutions that are licensed 
by the Department of Human Services as child care institutions 
and sales to private nonmedical institutions: 
Sec. 4. 36 MRSA §2559. as enacted by PL 2003, c. 673, Pt. v, 
§25 and affected by §29, is amended to read: 
§2559. Application of revenues 
Revenues derived by the tax imposed by this chapter must be 
credi ted to a General Fund suspense account. 
On or before the 
last day of each month, 
the State Controller shall transfer a 
percentage of the revenues received by the State Tax Assessor 
during the preceding month pursuant to the tax imposed by section 
Page l-LR0187(l) 
2552, 
subsection 1, paragraphs A to F to the Local Government 
Fund as provided by Title 30-A, section 5681, subsection 5. 
The 
balance remaining in the General Fund suspense account must be 
transferred to service provider tax General Fund revenue. 
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Emergency clause. 
In view of the emergency cited in the 
preamble, this Act takes effect when approved. 
SUMMARY 
This bill repeals the 
50" service provider tax imposed on 
private nonmedical institutions.