An Act Concerning the Taxation of Property Owned by Certain Nonprofit Organizations
Maine Legislature, Session 123, LD 1338
Committee Amendment CA_A_H561 (House)

COMMITTEE AMENDMENT ,/J " 
to H.P. 947, L.D. 1338, Bill, "An 
Concerning the Taxation of Property Owned by Certain Nonprofit Organizations" 
Act 
Amend the bill in section 1 by striking out all of paragraph H (page 1, lines 4 to 24 in 
L.D.) and inserting the following: 
'H. 
Real estate and personal property owned by or held in trust for fraternal 
organizations, except college fraternities, operating under the lodge system wIHeh 
sHall he that is used solely by fraternal organizations for meetings, ceremonials, 
religious or moralistic instruction or to further the charitable activities of the 
organization, including all facilities appurtenant to such use and used in connection 
therewith. If any building sHall lli not be used in its entirety for such purposes, but 
sHall he is used in part for such purposes and in part for any other purpose, exemption 
sHall be of is for the part used for such purposes. If an organization is not the sole 
occupant of the property, the exemption granted under this paragraph applies only to 
that portion of the property owned, occupied and used by the organization for its 
purposes. 
Further conditions to the right of exemption are that: 
(1) Ne A director, trustee, officer or employee of any organization claiming 
exemption sHall may not receive directly or indirectly any pecuniary profit from 
the operation tHeFeof of the organization, excepting reasonable compensation for 
services in effecting its purposes or as a proper beneficiary of its purposes; 
(2) All profits derived from the operation thereof of the organization and the 
proceeds from the rental or sale of its property are devoted exclusively to the 
purposes for which it is organized; and 
(3) The institution, organization or corporation claiming exemption under this 
subsection shall file with the tax assessors upon their request a report for its 
preceding fiscal year in such detail as the tax assessors may reasonably require.' 
Amend the bill by adding before the summary the following: 
COMMITTEE AMENDMENT 
~6· 
COMMITTEE AMENDMENT '4 "to H.P. 947, L.D. 1338 
'Sec. 2. Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Revenue Services - Bureau of 0002 
Initiative: Provides funds to reimburse municipalities for 50% of the estimated property 
tax revenue loss associated with changes to the property tax exemption for fraternal 
organizations. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
SUMMARY 
2007-08 
$0 
$0 
2008-09 
$253,121 
$253,121 
This amendment clarifies the intent of the bill to maintain property tax exemption for 
fraternal organizations that use portions of their property for purposes other than 
meetings, ceremonials and instruction if the other uses further the charitable activities of 
the fraternal organization. Portions of the organization's property that are occupied by 
another entity remain subject to taxation. This amendment also adds an appropriations 
and allocations section. 
FISCAL ~OTE REQlJlRED 
{~ee attached) 
COMMITTEE AMENDMENT 
Approved: 06/08/07 ;t;pae 
LD 1338 
LR 2183(02) 
An Act Concerning the Taxation of Property Owned by Certain Nonprofit Organizations 
Fiscal Note for Bill as Amended by Committee Amendment "A" 
Committee: Taxation 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
State Mandates 
Required Activity 
Fiscal Note Required: Yes 
Fiscal Note 
State Mandate.: Unfunded 
2007-08 
$0 
$0 
Administrative activities associated with this new property tax exemption. 
Fiscal Detail and Notes 
2008-09 
$253,121 
$253,121 
Projections 
2009-10 
$261,981 
$261,981 
Projections 
2010-11 
$271,150 
$271,150 
Unit Affected 
Costs 
Municipality 
Significant 
The General Fund cost of reimbursing municipalities for 500/0 of the estimated property tax revenue loss is $253,121 
in fiscal year 2008-09 and an appropriation is provided in the bill for that. The bill still has an unfunded mandate for 
90% of the cost of the local administrative activities necessitated by the new exemption. 
LR2183(02) - Fiscal Note - Page I of I