An Act To Eliminate Tax Increment Financing for Retail Businesses
Maine Legislature, Session 123, LD 0208
Committee: Taxation
Sponsors: SIMPSON, STRIMLING, HARLOW, WOODBURY, MILLS
Amends: 30-A MRSA §5222, 30-A MRSA §5224, 30-A MRSA §5225

Legislative Document 
No. 208 
H.P. 179 
House of Representatives, January 16,2007 
An Act To Eliminate Tax Increment Financing for Retail Businesses 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative SIMPSON of Auburn. 
Cosponsored by Senator STRIMLING of Cumberland and 
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MILLICENT M. MacFARLAND 
Clerk 
Representatives: HARLOW of Portland, WOODBURY of Yarmouth, Senator: MILLS of 
Somerset. 
PrmteJ nil rt'L:ycleJ p'-lpt'r 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 30-A MRSA §5222, sub-§14-A is enacted to read: 
14-A. Retail business. "Retail business" means a business that serves customers 
who are physically present at the location for the purpose of selecting and purchasing 
goods at retail or for renting tangible personal property. 
"Retail business" does not 
include a warehouse or a call center facility. 
Sec. 2. 30-A MRSA §5224, sub-§l, as enacted by PL 2001, c. 669, §I, IS 
amended to read: 
1. Adoption. The legislative body of a municipality shall adopt a development 
program for each development district. The development program must be adopted at the 
same time as is the district, as part of the district adoption proceedings or, if at a different 
time, in the same manner as adoption of the district, with the same notice and hearing 
requirements of section 5226. Before adopting a development program, the municipal 
legislative body shall consider the factors and evidence specified in subsection 2-A and 
section 5223, subsection 2. 
Sec. 3. 30-A MRSA §5224, sub-§2-A is enacted to read: 
2-A. Exceptions. Beginning October 1, 2007, the legislative body of a municipality 
may not adopt a development program for the primary purpose of the establishment or 
expansion of a retail business or businesses. 
Sec. 4. 30-A MRSA §5225, sub-§2, as enacted by PL 2001, c. 669, § I, IS 
amended to read: 
2. Unauthorized project costs. Except as provided in subsection I, paragraph D, 
the commissioner may not approve as a project cost the cost of facilities, buildings or 
portions of buildings used predominantly for the general conduct of government or for 
public recreational purposes, including, but not limited to, city halls and other 
headquarters of government where the governing body meets regularly, courthouses, 
jails, police stations and other state and local government office buildings, recreation 
centers, athletic fields and swimming pools. 
Beginning October 1, 2007, the 
commissioner may not approve project costs that primarily benefit a retail business. 
SUMMARY 
This bill provides that tax increment financing may not be used for a development 
program with the primary purpose of the establishment or expansion of a retail business 
or businesses. The bill also provides that project costs within a tax increment financing 
district may not include costs that primarily benefit a retail business. 
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