An Act Concerning Technical Changes to the Tax Laws
Maine Legislature, Session 123, LD 2154
Committee: Taxation
Sponsors: PERRY, PIOTTI
Amends: 30-A MRSA §5250-I, 36 MRSA §111, 36 MRSA §141, 36 MRSA §145, 36 MRSA §187-B, 36 MRSA §306, 36 MRSA §314, 36 MRSA §508, 36 MRSA §551, 36 MRSA §574-A, 36 MRSA §575, 36 MRSA §581, 36 MRSA §581-B, 36 MRSA §603, 36 MRSA §652, 36 MRSA §653, 36 MRSA §655, 36 MRSA §692, 36 MRSA §694, 36 MRSA §1109, 36 MRSA §1231, 36 MRSA §1482, 36 MRSA §1483, 36 MRSA §1484, 36 MRSA §1603, 36 MRSA §1752, 36 MRSA §1760, 36 MRSA §1765, 36 MRSA §1811, 36 MRSA §2513, 36 MRSA §2521-A, 36 MRSA §2551, 36 MRSA §2552, 36 MRSA §2557, 36 MRSA §2903, 36 MRSA §3202, 36 MRSA §3203, 36 MRSA §4641-B, 36 MRSA §5142, 36 MRSA §5211, 36 MRSA §5215, 36 MRSA §5219-K, 36 MRSA §5219-L, 36 MRSA §5256, 36 MRSA §6651

Legislative Document 
No. 2154 
S.P.823 
January 15,2008 
An Act Concerning Technical Changes to the Tax Laws 
Submitted by the Department of Administrative and Financial Services pursuant to Joint 
Rule 204. 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Senator PERRY of Penobscot. 
Cosponsored by Representative PIOTTI of Unity. 
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. 1. 30-A MRSA §5250-I, sub-§12, as enacted by PL 2003, c. 688, Pt. D, §2, 
is repealed. 
Sec. 2. 30-A MRSA §5250-I, sub-§15, as enacted by PL 2003, c. 688, Pt. D, §2, 
is repealed. 
Sec. 3. 36 MRSA §111, sub-§6, as enacted by PL 1979, c. 378, §2, is repealed. 
Sec. 4. 36 MRSA §141, sub-§2, ~, as amended by PL 1981, c. 364, §8, is 
repealed. 
Sec. 5. 36 MRSA §145 is enacted to read: 
§ 145. Declaration of jeopardy 
If the State Tax Assessor determines that the collection of any tax will be jeopardized 
by delay, the assessor, upon giving notice of this determination to the person liable for the 
tax, may demand an immediate return with respect to any period or immediate payment 
of any tax declared to be in jeopardy, or both, and may terminate the current reporting 
period and demand an immediate return and payment with respect to that period. 
Notwithstanding any other provision of law, taxes declared to be in jeopardy are payable 
immediately, and the assessor may proceed immediately to collect those taxes by any 
collection method authorized by this Title. The person liable for the tax may stay 
collection by requesting reconsideration of the declaration of jeopardy in accordance with 
section 151 and depositing with the assessor, within the time period specified in section 
151, a bond or other security in the amount of the liability with respect to which the stay 
of collection is sought. A determination of jeopardy by the assessor is presumed to be 
correct, and the burden of showing otherwise is on the taxpayer. 
Sec. 6. 36 MRSA §187-B, sub-§l, ~C, as amended by PL 1999, c. 521, Pt. A, 
§2, is further amended to read: 
C. 
If the return is not filed and the assessor issues a makes a determination of 
jeopardy assessment pursuant to section 141, subseetion 2, paragraph D 145, the 
penalty is 100% ofthe tax due. 
Sec. 7. 36 MRSA §187-B, sub-§3-A, as enacted by PL 1991, c. 873, §6 and 
affected by §9, is amended to read: 
3-A. Negligence; fraud. Afly A person who files a return under this Title that 
results in an underpayment of tax, any portion of which is attributable to negligence or 
intentional disregard of this Title or rules isstte6 adopted pursuant to this Title, but is not 
attributable to fraud with intent to evade the tax, is liable for a penalty in the amount of 
$25 or 25% of that portion of the underpayment, whichever is greater. Afly A person 
who files a return under this Title that results in an underpayment of tax, any portion of 
which is attributable to fraud with intent to evade the tax, is liable for a penalty in the 
amount of $75 or 75% of that portion of the underpayment, whichever is greater. For the 
purposes of this section, tHe term "negligence" means any failure to make a reasonable 
attempt to comply with the provisions of this Title. 
This subseotioA takes effeot July 1, 1993. 
Sec. 8. 36 MRSA §187-B, sub-§4-A, as enacted by PL 1991, c. 873, §7 and 
affected by §9, is amended to read: 
4-A. Substantial understatement. Ally A person who files a return under this Title 
that results in an underpayment of tax, any portion of which is attributable to a substantial 
understatement of tax, without negligence or intentional disregard of this Title or rules ef 
regulatioAs issued uAder adopted pursuant to this Title and without fraud with intent to 
evade the tax, is liable for a penalty of $5 or 1 % of that portion of the underpayment, 
whichever is greater, for each month or fraction of a month during which the failure to 
pay that portion of the underpayment continues, !!Q to a maximum in the aggregate of $25 
or 25% of the underpayment, whichever is greater. 
There is a substantial understatement of tax if the amount of the understatement on the 
return or returns for the period covered by the assessment exceeds 10% of the total tax 
required to be shown on the return or returns for that period or $1,000, whichever is 
greater. For purposes of oaloulatiAg determining whether an understatement is substantial 
and calculating the amount of aAY £! substantial understatement that is subject to penalty 
under this subsection, the amount of aAY an understatement is reduced by that portion of 
the understatement that is attributable to the tax treatment of any item by the taxpayer if 
there is or was substantial authority for stl6fl that treatment. 
This subseotioA takes effeot July 1, 1993. 
Sec. 9. 36 MRSA §306, as amended by PL 2007, c. 438, § 11, is further amended 
to read: 
§306. Definitions 
For the purpose of this chapter, the following terms sflal.\. have the following 
meanings. 
1. 
Chief assessor. "Chief assessor" SHall meaA tHat means the person who is 
primarily responsible for the assessing function in a primary assessing unit or primary 
assessing district, designated as such by the director State Tax Assessor. 
2. Hours of classroom training. "Hours of classroom training" shall mean clock 
fleHFS means clock hours, not credit hours. 
3. Municipal assessing unit. "Municipal assessing unit" means a municipality that 
has chosen not to be designated by the State Tax Assessor as a primary assessing area, 
either siAgle uAit or district member. 
4. Primary assessing area. "Primary assessing area" shall mean that area of the 
State designated by the director as means the basic geographic division of the stat&s 
State's territory for the purpose of property tax assessment and administration. M-i4 A 
primary assessing area may be either a:- primary assessing unit or a primary assessing 
district. 
A. 
"Primary assessing unit," a single municipality designated by the director as a 
primary assessing area; 
B. "Primary assessing district," a multi municipal area of the State designated by the 
director as a ml:llti ml:lnicipal assessing area. 
4-A. 
Primary assessing district. 
"Primary assessing district" 
means a 
multimunicipal area of the State that has been designated by the State Tax Assessor as a 
primary assessing area. 
4-B. Primary assessing unit. "Primary assessing unit" means a single municipality 
that has been designated by the State Tax Assessor as a primary assessing area. 
5. Professional assessor. "Professional assessor" shall mean any means a person 
who is employed full time by one or more municipalities or by a primary assessing area 
and devoting, 75% 
or more of his or her whose time is devoted to assessment 
administration. 
6. State stlpeA'is9FY ageney. "State supervisory agency" shall mean the Bl:lreau of 
Revenl:le Services. 
Sec. 10. 36 MRSA §314, as amended by PL 1987, c. 737, Pt. C, §§77 and 106; PL 
1989, c. 6; c. 9, §2; and c. 104, Pt. C, §§8 and 10, is further amended to read: 
§314. Removal 
Chief assessors The chief assessor holds office for an indefinite term unless otherwise 
specified by contract. A chief assessor may be removed from office as follows: 
1. Probationary period. Ally A chief assessor serving a probationary term period 
may be removed by the executive committee upon 30 days' written notice stating the 
reason therefor for the removal. 
2. Tenure. A chief assessor fla¥i.Rg who has tenure may be removed for cause by the 
executive committee 00 in the form and manner provided for the removal of town 
managers in Title 30-A, section 2633. The chief tax assessor shall hold office for an 
indefinite term unless otflerwise specified by contract. 
3. Certification revoked. A chief assessor whose certification is revoked by the 
State Tax Assessor sflal.l must be immediately removed from office immediately. 
Sec. 11. 36 MRS A §329, as amended by PL 1997, c. 526, §14, is further amended 
to read: 
§329. Inability to achieve standards 
Upon an initial detennination by If the Bureau of Revenue Services determines that a 
municipality has not met the minimum standards set forth in this subchapter, the 
municipality has the following 2 options: 
1. 
Acceptance. Upon such acceptance If the municipality accepts the bureau's 
determination, the bureau shall consult with the officers of the municipality and require 
steps by which the municipality shall is to achieve an equitable acceptable level of just 
assessing practices. S-ueh In requiring those steps, the bureau shall endeavor to 
accommodate the preferences of the municipal officers aOO. 
The steps may include 
membership, where applicable, in a primary assessing district, the joining with a 
II 
companion municipality in the hiring of a part time, professional assessor or an assessing 
firm or other arrangements approved by the Bureau of Revenue Services bureau; and 
2. 
Appeal. +he If the municipality deeming itself ~ aggrieved by the bureau's 
determination, the municipality may file a written notice of appeal with the State Board 
of Property Tax Review in accordance with chapter 101, subchapter lI-A 2-A. 
Sec. 12. 36 MRSA §508 is enacted to read: 
§508. Service charges 
1. 
Imposition. A municipality may impose service charges on the owner of 
residential property, other than student housing or parsonages, that is totally exempt from 
taxation under section 652 and that is used to provide rental income. 
Such service 
charges must be calculated according to the actual cost of providing municipal services to 
that real property and to the persons who use that property, and revenues derived from the 
charges must be used to fund, to the extent possible, the costs of those services. The 
municipal legislative body shall identify those institutions and organizations upon which 
service charges are to be levied. 
A municipality that imposes service charges on any institution or organization must 
impose those service charges on every similarly situated institution or organization. For 
the purposes of this section, "municipal services" means all services provided by a 
municipality other than education and welfare. 
2. Limitation. The total service charges levied by a municipality on any institution 
or organization under this section may not exceed 2% of the gross annual revenues of the 
institution or organization. In order to qualify for this limitation, the institution or 
organization must file with the municipality an audit of the revenues of the institution or 
organization for the year immediately prior to the year in which the service charge is 
levied. The municipal officers shall abate the portion of the service charge that exceeds 
2% of the gross annual revenues of the institution or organization. 
3. Administration. Municipalities shall adopt any ordinances necessary to carry out 
the provisions of this section. Determinations of service charges may be appealed in 
accordance with an appeals process provided by municipal ordinance. Unpaid service 
charges may be collected in the manner provided in Title 38, section 1208. 
Sec. 13. 36 MRSA §551, as amended by PL 1975, c. 252, § 14, is further amended 
to read: 
§551. Real estate; defined 
Real estate, for the purposes of taxation under this Part, shall iRclude includes all 
lands in the State and all buildings, mobile homes, camper trailers and other things that 
are affixed to the same, such as, but Rot limited to, camp trailers land, together with tfle 
any appurtenant water power, shore privileges and rights, forests and mineral deposits 
appertaiRiRg thereto; interests and improvements in land, the fee of which is in the State; 
interests by contract or otherwise in real estate exempt from taxation; and lines of electric 
light and power companies. Buildings, mobile homes, camper trailers and other things 
that are affixed to the laRd, OR leased land or eA land not owned by the owner of the 
buildings, shall be cORsidered must be taxed as real estate for purposes of taxatioR aRd 
shall be taxed in the place where said that land is located. Mobile homes, except stock in 
trade, shall be are considered real estate for purposes oftaxation under this Part. 
Sec. 14. 36 MRSA §574-A, as amended by PL 1989, c. 508, §9, is further 
amended to read: 
§574-A. Ineligibility 
The Legislature finds that when the value of a recreational use lease of forest land 
exceeds the value of the tree growth wJ:He.h that can be extracted from that land on a 
sustained basis per acre as determined pursuant to section 576, then the land is no longer 
primarily used for the continuous growth of forest products. This finding is sufficient 
cause to remove from taxation under this subchapter those parcels that are more valuable 
iR terms of recreatioR for recreational use and are being leased on that basis. Therefore, 
notwithstanding sections 573 ~ 
and 574-B, this subchapter shall ROt apply to aRY l! 
parcel of forest land that is leased for consideration to any iRdividual or group of 
iRdividuals person to use for recreational purposes does not qualifY for taxation under this 
subchapter if that parcel of land exceeds 100 acres and if the consideration for that lease 
per acre exceeds the value of the growth wJ:He.h that can be extracted on a sustained basis 
per acre as determined pursuant to section 576. The owner of the leased parcels shall 
submit a copy of the lease or leases on land subject to the provisioRS of taxation under 
this subsectioR subchapter to the State Tax Assessor for land in the unorganized territory 
and to the municipal assessors for land in orgaRizoed municipalities. 
The State Tax 
Assessor or the municipal assessor shall determine if whether the value of the lease 
exceeds the sustained growth value. If the value of the lease is determined to exceed the 
sustained growth value, the owner of the forest land shall have has 60 days from the date 
of RotificatioR receipt of notice of that determination to either terminate the lease, amend 
the lease to comply with the requirements of this section or withdraw the land covered by 
the lease from the tree grov,'th taxation under this subchapter. 
IR the case of A 
withdrawal, such actioR shall be pursuant to this section is subject to the provisions of 
section 581 ofthis subchapter. 
Sec. 15. 36 MRSA §575, amended by PL 1985, c. 785, Pt. A, § 1 09, is repealed 
and the following enacted in its place: 
§575. Administration; rules 
The State Tax Assessor may adopt rules necessary to carry out this subchapter. Rules 
adopted under this section are routine technical rules as defined in Title 5, chapter 375, 
subchapter 2-A. 
Sec. 16. 36 MRSA §581, as amended by PL 2007, c. 425, § 1 and repealed and 
replaced by c. 438, § 18, is repealed and the following enacted in its place: 
§581. Withdrawal 
1. Assessor determination; owner request. If the assessor determines that land 
subject to this subchapter no longer meets the requirements of this subchapter, the 
assessor must withdraw the land from taxation under this subchapter. Before withdrawing 
I 
a parcel from taxation under this subchapter, if the sole reason the land does not meet the 
requirements of this subchapter is that the owner failed to file the sworn statement 
required under section 574-B, the assessor shall provide the owner with written notice by 
regular mail of the deadline to file the sworn statement and permit the owner at least 60 
days to respond to that notice. An owner of land subject to taxation under this subchapter 
may at any time request withdrawal of that land from taxation under this subchapter by 
certifying in writing to the assessor that the land is no longer to be classified under this 
subchapter. 
2. Withdrawal of portion. In the case of withdrawal of a portion of a parcel, the 
owner, as a condition of withdrawal, shall file with the assessor a plan showing the area 
withdrawn and the area remaining subject to taxation under this subchapter. In the case of 
withdrawal of a portion of a parcel, the resulting portions must be treated after the 
withdrawal as separate parcels under section 708. 
3. Penalty. If land is withdrawn from taxation under this subchapter, the assessor 
shall impose a penalty upon the owner. The penalty is the greater of: 
A. An amount equal to the taxes that would have been assessed on the first day of 
April for the 5 tax years, or any lesser number of tax years starting with the year in 
which the land was first classified, preceding the withdrawal had that land been 
assessed in each of those years at its just value on the date of withdrawal. That 
amount must be reduced by all taxes paid on that land over the preceding 5 years, or 
any lesser number of tax years starting with the year in which the land was first 
classified, and increased by interest at the prevailing municipal rate from the date or 
dates on which those amounts would have been payable; and 
B. An amount computed by multiplying the amount, if any, by which the just value 
of the land on the date of withdrawal exceeds the 100% valuation of the land pursuant 
to this subchapter on the preceding April 1 st by the following rates. 
(1) If the land was subject to valuation under this subchapter for 10 years or less 
prior to the date of withdrawal, the rate is 30%. 
(2) If the land was subject to valuation under this subchapter for more than 10 
years prior to the date of withdrawal, the rate is that percentage obtained by 
subtracting 1 % from 30% for each full year beyond 10 years that the land was 
subject to valuation under this subchapter prior to the date of withdrawal, except 
that the minimum rate is 20%. 
For purposes of this subsection, just value at the time of withdrawal is the assessed just 
value of comparable property in the municipality adjusted by the municipality's certified 
assessment ratio. 
4. Assessment and collection of penalties. The penalties for withdrawal under this 
section must be paid upon withdrawal to the tax collector as additional property taxes. 
Penalties may be assessed and collected as supplemental assessments in accordance with 
section 713-B. 
5. 
Eminent domain. A penalty may not be assessed under this section for a 
II 
withdrawal occasioned by a transfer to an entity holding the power of eminent domain if 
the transfer results from the exercise or threatened exercise of that power. 
6. 
Relief from reguirements. Upon withdrawal under this section, the land is 
relieved of the requirements of this subchapter immediately and is returned to taxation 
under chapter 105, subchapter 2 beginning the following April 1 st. 
7. Reclassification as farmland or open space land. A penalty may not be assessed 
upon the withdrawal of land from taxation under this subchapter if the owner applies for 
classification of that land as farmland or open space land under subchapter 10 and that 
application is accepted. If a penalty is later assessed under section 1112, the period of 
time that the land was taxed as forest land under this subchapter is included for purposes 
of establishing the amount of the penalty. 
8. Report of penalty. A municipality that receives a penalty for the withdrawal of 
land from taxation under this subchapter must report the total amount received in that 
reporting year to the State Tax Assessor on the municipal valuation return form described 
in section 383. 
Sec. 17. 36 MRSA §581-B, as enacted by PL 1973, c. 308, § 13, is amended to 
read: 
§581-B. Reclassification and withdrawal in unorganized territory 
In the case or reclassification or withdrawal of If forest land in the unorganized 
territory is reclassified or withdrawn from taxation under this subchapter, the State Tax 
Assessor shall make suefl supplementary assessments or abatements as may be necessary 
to carry out the provisions of this subchapter. 
Sec. 18. 36 MRSA §603, sub-§2, as amended by PL 1973, c. 592, §§8 to 10, is 
repealed. 
Sec. 19. 36 MRSA §603, sub-§2-A is enacted to read: 
2-A. Enumeration. The following personal property must be taxed in the place 
where it is situated: 
A. Portable mills; 
B. All store fixtures, office furniture, furnishings, fixtures and equipment; 
C. Professional libraries, apparatus, implements and supplies; 
D. Coin-operated vending or amusement devices; 
E. All camper trailers, as defined in section 1481; and 
F. Television and radio transmitting equipment. 
Sec. 20. 36 MRSA §652, as amended by PL 2007, c. 438, § 19, is further amended 
to read: 
§652. Property of institutions and organizations 
The followiflg property of iflStit\:ltioflS af\S orgaf\izatioflS is e)i:empt from taxation: 
1. Property of institutions and organizations. The property of institutions and 
II 
organizations is exempt from taxation as provided in this subsection. 
A. The real estate and personal property owned and occupied or used solely for their 
own purposes by benevolent and charitable institutions incorporated by this State are 
exempt from taxation. 
Such an institution may not be deprived of the right of 
exemption by reason of the source from which its funds are derived or by reason of 
limitation in the classes of persons for whose benefit the funds are applied. 
For the purposes of this paragraph, "benevolent and charitable institutions" includes, 
but is not limited to, nonprofit nursing homes licensed by the Department of Health 
and Human Services pursuant to Title 22, chapter 405, nonprofit residential care 
facilities licensed by the Department of Health and Human Services pursuant to Title 
22, chapter 1663, nonprofit community mental health service facilities licensed by the 
Commissioner of Health and Human Services pursuant to Title 34-8, chapter 3 and 
nonprofit child care centers incorporated by this State as benevolent and charitable 
institutions. For the purposes of this paragraph, "nonprofit" refers to an institution 
that has been determined by the United States Internal Revenue Service to be exempt 
from taxation under Section 501 (c )(3) of the Codet~ 
B. 
The real estate and personal property owned and occupied or used solely for 
their own purposes by literary and scientific institutions are exempt from taxation. If 
any building or part of a building is used primarily for employee housing, that 
building, or that part of the building used for employee housing, shalt ~ not Be 
exempt from taxation. 
C. 
Further conditions to the right of exemption under paragraphs A and B are that: 
(1) Any corporation claiming exemption under paragraph A must be organized 
and conducted exclusively for benevolent and charitable purposes; 
(2) 
A director, trustee, officer or employee of an organization claiming 
exemption -is may not entitles to receive directly or indirectly any pecuniary 
profit from the operation of that organization, e)wepting except as reasonable 
compensation for services in effecting its purposes or as a proper beneficiary of 
its strictly benevolent or charitable purposes; 
(3) All profits derived from the operation of an organization claiming exemption 
and the proceeds from the sale of its property are must be devoted exclusively to 
the purposes for which it is organized; 
(4) The institution, organization or corporation claiming exemption under this 
subseetiofl shall section must file with the twt assessors upon their request a 
report for its preceding fiscal year in such detail as the twt assessors may 
reasonably require; 
(5) An exemption is may not be allowed under this subseetiofl section in favor 
of an agricultural fair association holding pari-mutuel racing meets unless it has 
qualified the next preceding year as a recipient of a stipend from the Stipend 
Fund provided in Title 7, section 86; 
(6) An exemption allowed under paragraph A or B for real or personal property 
owned and occupied or used to provide federally subsidized residential rental 
housing is limited as follows: 
Federally subsidized residential rental housing 
placed in service prior to September 1, 1993 by other than a nonprofit housing 
corporation that is acquired on or after September 1, 1993 by a nonprofit housing 
corporation and the operation of which is not an unrelated trade or business to 
that nonprofit housing corporation is eligible for an exemption limited to 50% of 
the municipal assessed value of that property. An exemption granted under this 
subparagraph must be revoked for any year in which the owner of the property is 
no longer a nonprofit housing corporation or the operation of the residential 
rental housing is an unrelated trade or business to that nonprofit housing 
corporation. 
(a) For the purposes of this subparagraph, the following terms have the 
following meanings. 
(i) "Federally subsidized residential rental housing" means residential 
rental housing that is subsidized through project-based rental assistance, 
operating assistance or interest rate subsidies paid or provided by or on 
behalf of an agency or department of the Federal Government. 
(ii) 
"Nonprofit housing corporation" means a nonprofit corporation 
organized in the State that is exempt from tax under Section 501 (c )(3) of 
the Code and has among its corporate purposes the provision of services 
to people of low income or the construction, rehabilitation, ownership or 
operation of housing. 
(iii) "Residential rental housing" means one or more buildings, together 
with any facilities functionally related and subordinate to the building or 
buildings, located on one parcel of land and held in common ownership 
prior to the conversion to nonprofit status and containing 9 or more 
similarly constructed residential units offered for rental to the general 
public for use on other than a transient basis, each of which contains 
separate and complete facilities for living, sleeping, eating, cooking and 
sanitation. 
(iv) "Unrelated trade or business" means any trade or business whose 
conduct is not substantially related to the exercise or performance by a 
nonprofit corporation of the purposes or functions constituting the basis 
for exemption under Section 501 (c )(3) of the Code. 
(b) Eligibility of the following property for exemption is not affected by the 
provisions of this subparagraph: 
(i) Property used as a nonprofit nursing home, residential care facility 
licensed by the Department of Health and Human Services pursuant to 
Title 22, chapter 1663 or a community living arrangement as defined in 
Title 30-A, section 4357-A or any property owned by a nonprofit 
organization licensed or funded by the Department of Health and Human 
Services to provide services to or for the benefit of persons with mental 
II 
illness or mental retardation; 
(ii) Property used for student housing; 
(iii) Property used for parsonages; 
(iv) 
Property that was owned and occupied or used to provide 
residential rental housing that qualified for exemption under paragraph A 
or B prior to September 1, 1993; or 
(v) Property exempt from taxation under other provisions of law; and 
8 
(7) In addition to the requirements of subparagraphs (1) to (4), an exemption is 
not allowed under paragraph A or B for real or personal property owned and 
occupied or used to provide residential rental housing that is transferred or placed 
in service on or after September 1, 1993, unless the property is owned by a 
nonprofit housing corporation and the operation of the residential rental housing 
is not an unrelated trade or business to the nonprofit housing corporation. For the 
purposes of this subparagraph, the following terms have the following meanings. 
(a) 
"Nonprofit housing corporation" means a nonprofit corporation 
organized in the State that is exempt from tax under Section 501(c)(3) of the 
Code and has among its corporate purposes the provision of services to 
people of low income or the construction, rehabilitation, ownership or 
operation of housing. 
(b) "Residential rental housing" means one or more buildings, together with 
any facilities functionally related and subordinate to the building or 
buildings, containing one or more similarly constructed residential units 
offered for rental to the general public for use on other than a transient basis, 
each of which contains separate and complete facilities for living, sleeping, 
eating, cooking and sanitation. 
(c) 
"Unrelated trade or business" means any trade or business whose 
conduct is not substantially related to the exercise or performance by a 
nonprofit organization of the purposes constituting the basis for exemption 
under Section 501(c)(3) of the Code. 
E. 
The real estate and personal property owned, occupied and used for their own 
purposes by posts of the American Legion, Veterans of Foreign Wars, American 
Veterans, Grand /\rmy of the Republic, Sons of Union Veterans of the Civil War, 
:,panish War Veterans, Disabled American Veterans >:md Navv Clubs of the U.S.A. 
;'clr (1rr , "'f·1 solely by those organizaticns for meetings, .:ereilloniais or instruction or 
~ 
to fu I 1i"'1 ','1 the charitable activities of the organization, Including all facilities that are 
appurtenant to 5H€fl-tt5e that property and used in connection therewith with those 
purposes, are exempt from taxation. 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) 
A director, trustee, officer or employee of any organization claiming 
exemption may not receive directly or indirectly any pecuniary profit from the 
operation thereof of that organization, exeepting except as 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 sale of its property are must be devoted exclusively to the 
purposes for which it is organized; and 
(3) The institution, organization or corporation claiming exemption under this 
subsestion shall paragraph must 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. 
F. 
The real estate and personal property owned and occupied or used solely for their 
own purposes by chambers of commerce or boards of trade in this State are exempt 
from taxation. 
Further conditions to the right of exemption are that: 
(1) Ne A director, trustee, officer or employee of any organization claiming 
exemption shal-l may not receive directly or indirectly any pecuniary profit from 
the operation thereof of that organization, e}(septing except as 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 sale of its property are must be devoted exclusively to the 
purposes for which it is organized; and 
(3) The institution, organization or corporation claiming exemption under this 
subsestion shall paragraph must 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. 
G. 
Houses of religious worship, including vestries, and the pews and furniture 
within the same them; tombs and rights of burial; and property owned and used by a 
religious society as a parsonage !ill to the value of $20,000, and personal property not 
exceeding $6,000 in value are exempt from taxation, but so mush of except that any 
portion of a parsonage as that is rented is l-iahle subject to taxation. For purposes of 
the taJ( exemption provided by this paragraph a parsonage shall mean, "parsonage" 
means the principal residence provided by a religious society for its slergyman cleric 
Page II - 123LR3079(Ol)-1 
I 
whether or not the principal residence is located within the same municipality ef 
pla€e as the house of religious worship where the olergyman cleric regularly conducts 
religious services. 
H. 
Real estate and personal property owned by or held in trust for fraternal 
organizations, except college fraternities, operating under the lodge system wJ:H.€.ft 
shall be that are used solely by those fraternal organizations for meetings, 
ceremonials, or religious or moralistio moral instruction, including all facilities that 
are appurtenant to sHoh Hse that property and used in connection there'Nith with those 
purposes are exempt from taxation. If fffiY ~ building shall not be Hsed in its entirety 
for sHoh pHrposes, bHt shall be .lli used in part for sooIl those purposes and in part for 
I I 
any other purpose, exemption shall be of only the part used for sooIl those purposes .lli 
exempt. 
Further conditions to the right of exemption under this paragraph are that: 
(l) Ne A director, trustee, officer or employee of any organization claiming 
IS 
exemption sflall may not receive directly or indirectly any pecuniary profit from 
the operation thereof of that organization, exoepting except as 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 sale of its property are must be devoted exclusively to the 
purposes for which it is organized; and 
(3) The institution, organization or corporation claiming exemption under this 
subseotion shall paragraph must 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. 
J. 
The real and personal property owned by one or more of the foregoing 
organizations in paragraphs A and Band E to H and occupied or used solely for their 
own purposes by one or more other such organizations are exempt from taxation. 
K. 
The real and personal property leased by and occupied or used solely for its own 
purposes by an incorporated benevolent and charitable organization wJ:H.€.ft that is 
I 
exempt from taxation under section 50 I 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, !! health maintenance organization or 
!! blood bank are exempt from taxation. 
L. Service charges. 
(1) The ovmers of oertain institHtional and organizational real property, which is 
otherwise exempt from state or ml:lnicipal ta)(ation, may be subject to service 
charges when these oharges are oalcl:llated acoording to the actual cost of 
providing ml:lnioipal servioes to that real property and to the persons who use that 
property. These servioes shall inolude, \vithout limitation: 
(a) Fire proteotion; 
(b) Police protection; 
I 
(c) 
Road maintenance and construction, traffic control, snow and ICe 
removal; 
(d) Water and sewer service; 
(e) ~anitation services; and 
(D Any services other than education and 'Nelfare. 
(2) The establishment of service charges is not mandatory, but rather is at the 
discretion of the municipality in which the exempt property is looated. The 
municipal legislative body shall determine those institutions and organizations on 
whioh service charges are to be le'lied by charging for services on any or all of 
the following classifioations oftax exempt real property: 
II 
(a) Residential properties ourrently totally exempt from property taxation, 
yet used to provide rental inoome. This olassification shall not include 
student housing or parsonages. If a munioipality levies service oharges in any 
of the olassifications of this subparagraph, that municipality shall levy these 
service charges to all institutions and organizations mvning property in that 
classifioation. 
(3) With respeot to the determination of service charges, appeals shall be made 
in acoordance ,."ith an appeals process to be provided for by munioipal ordinance. 
(4) The collection of unpaid servioe charges shall be carried out in the same 
manner as provided in Title 38, section 1208. 
(5) Municipalities shall use the revenues accrued from service charges to fund, 
as much as possible, the costs ofthose services. 
(6) The total service charges levied by a municipality on any institution and 
organization under this section shall not exceed 2% of the gross annual revenues 
of the organization. To qualify for this limitation the institution or organization 
shall file with the municipality an audit ofthe revenues of the organization for the 
year immediately prior to the year ,t¥hich the service charge is levied. The 
municipal officers shall abate the service charge amount that is in e)wess of 2% 
of the gross annual revenues. 
(7) 
Municipalities shall adopt any necessa!)' ordinances to oar!)' out the 
provisions of this paragraph regarding service charges. 
An organization or institution that desires to seoure exemption under this section shall 
make must file a written application and file accompanied by written proof of entitlement 
for each parcel to be oonsidered on or before the first day of April in the year in which the 
exemption is first requested with the assessors of the municipality in which the property 
would otherwise be taxable. 
If granted, the exemption continues in effect until the 
assessors determine that the organization or institution is no longer qualified. Proof of 
entitlement must indicate the specific basis upon which exemption is claimed. 
Sec. 21. 36 MRSA §653, sub-§l,~, as corrected by RR 1991, c. 2, §132, is 
repealed and the following enacted in its place: 
F. An exemption may not be granted to any person under this subsection unless the 
person is a resident of this State. 
Sec. 22. 36 MRSA §653, sub-§l,~, as amended by PL 1989, c. 501, Pt. Z, is 
further amended to read: 
H. 
Afly A municipality granting exemptions under this subsection shall have a valid 
claim agaiAst is entitled to reimbursement from the State to reeover of 90% of that 
portion of the tffites property tax revenue lost b~r reasOA as a result of the exemptions 
as that exceeds 3% of the totallooaJ. municipal property tax levy, upon submission of 
proof of the faets in .!! form satisfactory to the CommissioAer of FiAaAee State Tax 
Assessor. 
The elaims shall be preseAted to the Legislatl:lre Rext eOAveAiAg. 
Exemptions granted under this subsection that are reimbursable pursuant to section 
are not eligible for reimbursement under this paragraph. 
Sec. 23. 36 MRSA §655, sub-§l, W, as amended by PL 2005, c. 652, § 1 and 
affected by §3, is further amended to read: 
P. 
All items of individually owned personal property with a just value of less than 
$1,000, except: 
(1) Items used for industrial or commercial purposes; and 
(2) Vehicles aAd eamp trailers as defined in section 1481 that are not subject to 
an excise tax; 
Sec. 24. 36 MRSA §692, sub-§4, as enacted by PL 2005, c. 623, § 1, is amended 
to read: 
4. Property tax rate. The following percentages of the value of exempt business 
equipment must be included in the total municipal valuation used to determine the 
municipal tax rate for 2008 and subsequent tax years: 
A. 
The applicable percentage specified in section 694, subsection 2, paragraph A 
for exempt business equipment for which the municipality is entitled to receive 
reimbursement under section 694, subsection 2, paragraph A; 
B. 
The applicable percentage calculated under section 694, subsection 2, paragraph 
B for exempt business equipment for which the municipality receives reimbursement 
under section 694, subsection 2, paragraph B; and 
C. 
The applicable percentage calculated under section 694, subsection 2, paragraph 
C for exempt business equipment for which the municipality receives reimbursement 
under section 694, subsection 2, paragraph C. 
For purposes of this subsection, the value of exempt business equipment must be adjusted 
by the percentage of just value upon which the assessment of the total value of all 
assessed property in the municipality is based, as certified pursuant to section 383. 
Sec. 25. 36 MRSA §694, sub-§2, ,n, as amended by PL 2007, c. 438, §24, is 
further amended to read: 
B. In the case of municipalities choosing a municipality that chooses reimbursement 
under this paragraph in which the personal property factor exceeds 5%, the applicable 
percentage for exempt business equipment is 50% plus an amount equal to 112 of the 
personal property factor. For purposes of this paragraph, "personal property factor" 
means the percentage derived from a fraction, the numerator of which is the value of 
business personal property in the municipality, whether taxable or exempt, and the 
denominator of which is the value of all taxable property in the municipality plus the 
value of exempt business equipment. For purposes of this paragraph, the taxable 
value of exempt business equipment is the value that would have been assessed on 
that equipment if it were taxable. 
Sec. 26. 36 MRSA §694, sub-§2, ~C, as amended by PL 2007, c. 438, §25, is 
further amended to read: 
C. 
In the case of a municipality that has one or more tax increment financing 
districts authorized pursuant to Title 30-A, chapter 206, subchapter 1 and effective 
under Title 30-A, section 5226, subsection 3 prior to April 1, 2008 or authorized 
pursuant to Title 30-A, former chapter 207 and effective under Title 30-A, former 
section 5253, subsection 1, paragraph F, prior to April 1, 2008, the applicable 
percentage with respect to TIF exempt business equipment is 50% plus a percentage 
amount equal to the percentage amount, if any, by which the municipal tax increment 
percentage for the tax increment financing district in which the TIF exempt business 
equipment is located exceeds 50%. This paragraph applies only when it will result in 
a greater percentage of reimbursement for the TIF exempt business equipment than 
would be provided under the greater of paragraph A or B. 
Sec. 27. 36 MRSA §694, sub-§3, as enacted by PL 2005, c. 623, § 1, is amended 
to read: 
3. Reimbursement to unorganized territory education and services. The bureau 
shall reimburse calculate the reimbursement to the Unorganized Territory Education and 
Services Fund for twtes property tax revenue lost by reason of the exemption in the same 
manner as it does for municipalities and at the same percentages as are applicable to 
municipalities. 
Sec. 28. 36 MRSA §694, sub-§4, as enacted by PL 2005, c. 623, § 1, is repealed. 
Sec. 29. 36 MRSA §1109, sub-§3, ~, as amended by PL 2003, c. 619, §2, is 
further amended to read: 
M. 
The identification of the land or of outstanding natural resources on the land by 
a legislatively mandated program, on the state, local or federal level, as particular 
areas, parcels, land types or natural resources for protection, including, but not 
limited to, the R~gister of Critical Areas register of critical areas under Title.§. 11, 
chapter 312 section 544-B; the laws governing wildlife sanctuaries and management 
areas under Title 12, section 10109, subsection 1 and sections 12706 and 12708; the 
laws governing the State's rivers under Title 12, chapter 200; the natural resource 
protection laws under Title 38, chapter 3, subchapter 1, article 5-A; and the Maine 
Coastal Barrier Resources Systems under Title 38, chapter 21; 
Page IS -123LR3079(Ol)-1 
Sec. 30. 36 MRSA §1231, as amended by PL 1979, c. 666, §27, IS further 
amended to read: 
§1231. Returns to State Tax Assessor 
Eaefl On or before the first day of May in each year, every owner or person in charge 
or control of personal property sl:lch as ',."ol:lld not be e](empt from taxation if it 'were 
located in a city or tmNn of this State, and not othepwise sl:lbject to taxation I:lnder existing 
laws of the State, which that on the first day of April in each of that year is situated, 
whether permanently or temporarily, within att the unorganized to't'l'Rship, territory shall , 
on or before the first day of M~' in each year, return to the State Tax Assessor on a form 
to be furnished by the State Tax Assessor a complete list of such property I:lpon blanks 
furnished by said Tax Assessor that would not be exempt from taxation if it were located 
in a municipality of this State and that is not otherwise subject to taxation under this Part. 
Swfl That property sflal.l must be taxed at the rate established by the State Tax Assessor 
as provided in section 1602. 
/\ny sl:lch o't'IRer or A person who knowingly makes a fraudulent return under this 
section commits a civil violation for which a furfeirure fine of not less than $100 nor 
more than $500 for each violation sflal.l must be adjudged. 
Sec. 31. 36 MRSA §1482, sub-§l, ~A, as amended by PL 1979, c. 80, §7, is 
further amended to read: 
A. 
For the privilege of operating an aircraft within the State, each heavier and 
lighter than air heavier-than-air aircraft or lighter-than-air aircraft se operated attd in 
this State that is owned or controlled by a resident of this State, or a nonresident 
operating for compensation or hire within this State and required to register under 
Title 6, shall be ~ subject to s-uOO an excise tax computed as follows: A sum eql:lal to 
mills on each dollar of the maker's average equipped price for the first or current 
year of model; 7 mills for the 2nd year; 5 mills for the 3rd year; 4 mills for the 4th 
year; and 3 mills for the 5th and succeeding years. The minimum tax shall be ~ $10. 
Nonresidents of this State who operate aircraft within this State for compensation or 
hire sflal.l and are required to register under Title 6 must pay 1/12 of the total excise 
tax amount computed as required in this sl:lbsection paragraph for each calendar 
month or fraction thereof that the aircraft remains in the State. 
(I) Every owner of an aircraft ,>vith a cl:lrrent Maine registration, valid throl:lgh 
April 30, 1980, shall receive a 2 month credit for e]wise tax paid for the aircraft 
registration year 1979 80 only. The credit provided in this sl:lbparagraph shall be 
applied to the aircraft registration renewal fur the registration year 1980 8 I. 
Sec. 32. 36 MRSA §1483, sub-§13, as amended by PL 1995, c. 12, § 1 and 
affected by §4, is further amended to read: 
13. Certain buses. 
Buses used for the transportation of passengers for hire in 
interstate or intrastate commerce, or both, by carriers granted certificates of public 
convenience and necessity, or permits, by the Maine Public Utilities Commission, 
provided sl:lch engaged in furnishing common carrier passenger service under an 
operating authority license issued pursuant to Title 29-A, section 552. At the option of 
the appropriate municipality, those buses may be subject to the excise tax provided in 
section 1482 at tHe option of tHe appropriate municipality; 
Sec. 33. 36 MRSA §1484, as amended by PL 1987, c. 769, Pt. A, § 152, is further 
amended to read: 
§1484. Place of payment 
The excise tax on a veHicle SHall imposed by this chapter must be paid in accordance 
witH tHe following: as provided in this section. 
1. Aircraft. For registration years beginning on or after March 1, 1982, the The 
excise tax on an aircraft sAalt must be paid to the Department of Transportation. The 
receipts from tHese eKcise taK payments SHall be reimbursed by tHe Department of 
Transportation shall distribute the receipts from each excise tax payment to the 
municipality where the aircraft is based except as follows. 
A. 
If the aircraft is based at an airport owned by a county, the excise tax payments 
sAalt must be reimbursed distributed to tHe that county. 
B. 
If the aircraft is based at the Augusta State Airport, the excise tax payments sAalt 
must be retained by the department Department of Transportation. 
C. 
THe location 'NHere an aircraft SHall be considered based is tHe location in Maine 
WHere it has been hangared, parked, tied do,""n or moored the most nigHts during tHe 
0 day period of active flying preceding payment of tHe eKcise taK. If the aircraft has 
not been based at a Maine location during the 30 day period of active flying 
preceding payment, tHen the location where an aircraft SHall be considered based is 
tHe location in Maine ' ..... Here it 'will be hangared, parked, tied do"i'A or moored the 
most nigHts during the 30 day period of active flying neKt following payment of tHe 
eKcise tax. 
For the purposes of this subsection, an aircraft is deemed to be based at the location in the 
State where it has been hangared, parked, tied down or moored the most nights during the 
30-day period of active flying preceding payment of the excise tax. If the aircraft has not 
been hangared, parked, tied down or moored at a location in the State during the 30-day 
period of active flying preceding payment, then the aircraft is deemed to be based at the 
location in the State where it will be hangared, parked, tied down or moored the most 
nights during the 30-day period of active flying next following payment of the excise tax. 
2. 
Mobile homes and camper trailers. Mobile homes and camper trailers are 
subject to excise tax as provided in this subsection. 
A. 
If the excise tax on a mobile home or camper trailer is paid prior to April 1 st, or 
if the mobile home or earnp camper trailer is acquired or is brought into this State 
after April 1st, the excise tax sAalt must be paid in the place where the mobile home 
or earnp camper trailer is located. 
B. 
If the excise tax on a mobile home or camper trailer is paid on or after April 1st, 
the excise tax sAalt must be paid in the place where the mobile home or earnp camper 
trailer was located on April 1 st. 
3. Motor vehicles. Motor vehicles are subject to excise tax as provided in this 
subsection. 
A..Jf..the The excise tax on a motor vehicle is owned by an individual resident of 
this State, the exeise tWl shall must be paid in the place where the owner resides. 
B..Jf..the The excise tax on a motor vehicle is owned by a nonresident person, the 
exeise tall shall individual must be paid in the place where fie the owner is 
temporarily or occasionally residing,-&;--if~ there is no such residing place, the tax 
must be paid to the Secretary of State. 
C. 
If....the The excise tax on a motor vehicle is owned by a corporation or a 
partnership, the exeise tax shall must be paid in the following manner. 
1 
(1) If it the owner is a corporation or partnership other than one described in 
subparagraph (2), the excise tax sfl.all must be paid to the place in which the 
owner's registered or main office of that organizoation is located, except that if the 
organizoation owner has an additional permanent place, or plaees, of business 
where motor vehicles are customarily kept, the tax on these vehicles sfl.all must 
be paid to the place where 500ft that permanent place of business is located. The 
temporary location of an office and the stationing of vehicles in connection with 
a construction project of less than 24 months duration is not considered to 
constitute a permanent place of business. In the ease of If the owner is a foreign 
corporation or partnership not maintaining a place of business within the State, 
the excise tax sfl.all must be paid to the Secretary of State. 
(2) In the ease of eorporations If the owner is a corporation described in Title 
35-A, sections 2101 to 2104, an;' the excise taxes owed shall tax must be paid to 
the place in which the registered or main office of that organization is located. 
(3) If a munieipality, eounty or motor vehiele ovt'fler feels the exeise tax has 
been improperly levied under the authority of this paragraph, the o't't'fler, eounty 
or municipality may request within 3 years from the date of an excise tall levy a 
determination of this question by the State Tax Assessor. 
The State Tax 
Assessor's determination is limited to the same 3 year period and shall be binding 
on all parties. Any party may seek revie't'l of the determination in accordance 
'Nith the Maine Rules of Civil Procedure, Rule 80 C. Upon notification by the 
State Tax Assessor of a determination made under this section, any municipality 
or county which has incorrectly accepted excise taJl money, within 30 days of 
that determination, shall pay the mone:)', together '""ith interest at the maximum 
rate determined by the Treasurer of State, pursuant to section 505, to the 
municipality or county named in the determination as the proper place of 
payment. 
Within 3 years from the date of an excise tax levy under the authority of this 
paragraph, a municipality, county or motor vehicle owner that feels the excise tax has 
been improperly levied may request a determination of this question by the State Tax 
Assessor. The State Tax Assessor's determination is limited to the same 3-year period 
and is binding on all of the parties. Any of the parties may seek review of the 
determination in accordance with the Maine Rules of Civil Procedure, Rule 80-C. 
Within 30 days after receipt of notice of a determination made by the State Tax 
I 
Assessor under this paragraph, a municipality or county that has incorrectly accepted 
excise tax money must pay the money, together with interest at the maximum rate 
established by the Treasurer of State pursuant to section 505, to the municipality or 
county identified in the determination as the proper place of payment. 
D. 
Notwithstanding other provisions of this subsection, if a motor vehicle is leased 
for a period of one month or longer, the excise tax shalt must be paid in the place 
where it would be paid if the lessee were the owner. 
E. When an excise tax is paid to the Secretary of State under this subsection, it must 
be deposited in the General Fund. 
4. When paid to State. '.lihen an excise tax is to be paid to the State under this 
II 
section, it shall be paid to the Treasurer of State in the case of aircraft and to the Secretary 
of State in the case of motor vehicles and deposited in the General fund. 
I3 
Sec. 34. 36 MRSA §1603, sub-§I, as amended by PL 2005, c. 686, Pt. A, §65, is 
further amended to read: 
1. Definition. For the purposes of this chapter, "municipal cost component" means 
the cost of funding services in the Unorganized Territory Tax District that would not be 
borne by the State if the Unorganized Territory Tax District were a municipality, but does 
not include a state cost allocation charge, including, without limitation, reimbursement to 
the General Fund for departmental functions such as accounting, personnel administration 
and supervision. "Municipal cost component" also includes the cost of funding 
obligations of the unorganized territory under the terms of a tax increment financing 
district agreement. The "municipal cost component" includes, but is not limited to: 
A. 
The cost of education, as would be determined by the Essential Programs and 
Services Funding Act if the unorganized territory were a municipality; 
B. 
The cost of services the state funds in the unorganized territory that are funded 
locally by a municipality; the cost of forest fire protection to be included in the cost 
component must be determined in accordance with Title 12, section 9205-A and 
collected in the same manner as other portions of the municipal cost component; and 
C. 
The cost of reimbursement by the State for services a county provides to the 
unorganized territory in accordance with Title 30-A, chapter 305. A county may not 
be reimbursed for services provided on or after January 1, 1979, unless a legislative 
allocation is obtained pursuant to this chapter. If a county receives, in addition to its 
budget, funds that are designated by the Legislature for a specific purpose and the 
county does not spend those funds for that specific purpose in that fiscal year, then 
the reimbursement under this chapter to that county for the next fiscal year must be 
reduced by an amount equal to the amount of funds so designated that were not 
expended for that specific purpose~; and 
D. The cost for payments that the unorganized territory is required to make pursuant 
to the terms of a tax increment financing district agreement with respect to taxable 
property in the Unorganized Territory Tax District. 
Sec. 35. 36 MRSA § 1606, as amended by PL 1989, c. 373, § I, is further amended 
to read: 
§1606. Property taxes credited on assessments; quarterly payments for unorganized 
territory services and annually for county taxes 
Notwithstanding any other statute to the contrary, the gross amount of property taxes 
assessed upon real and personal property in the unorganized territory through the State 
Tax Assessor for the benefit of any special fund or political subdivision of the State may 
be cred ited on the books of the State to the special fund or to the proper fiscal officer of 
the political subdivision. The Treasurer of State shall pay to that fiscal officer the amount 
of the tax so assessed, in equal quarterly amounts for unorganized territory services, on or 
before the last day of July, October, January and April and an annual installment for 
county taxes on or before October 15th following the date of the assessment. The 
Treasurer of State shall pay to any named party of a tax increment financing district in the 
unorganized territory those tax dollars obligated to that party under the terms of the tax 
increment financing district agreement. The payment must be made on or before October 
15th following the date of assessment or within 30 days after the tax increment financing 
district taxes are paid, whichever is later. The amount of the assessment is appropriated 
for the purposes of this section. Upon collection by the State Tax Assessor, swfl those 
taxes ~ 
must be deposited in the Unorganized Territory Education and Services Fund. 
All abatements of such taxes ~ 
must be charged against the Unorganized Territory 
Education and Services Fund and all interest and supplemental assessments ~ 
must be 
paid into the Unorganized Territory Education and Services Fund~ and neither may be 
charged against or credited to the special fund or political subdivision on account of 
which the tax was levied. Any excess of supplemental assessments over abatements 
accruing to the Unorganized Territory Education and Services Fund ~ 
must be 
considered as reimbursement to the Unorganized Territory Education and Services Fund 
for administrative expenses connected with the assessment of those taxes. The intent of 
the Legislature is to permit the administration of all real and personal property taxes in 
the unorganized territory through the Unorganized Territory Education and Services Fund 
as a matter of convenience and economy. 
Sec. 36. 36 MRSA §1752, sub-§l is amended to read: 
1. 
Advertise. "Advertisement" "Advertise" means aRj' to make a public 
announcement of whatever kind or character and includes any by any means whatsoever, 
including a notice or announcement in aRj' i! radio or television televised broadcast, 
newspaper, magazine, catalog, circular, handbill, sign, placard or aRj' billboard. 
Sec. 37. 36 MRSA §1752, sub-§l-B, as amended by PL 2005, c. 218, § 11, is 
further amended to read: 
1-B. Automobile. "Automobile," for purposes of subsection 17 B, "Automobile" 
means a self-propelled 4-wheel motor vehicle designed primarily to carry passengers and 
not designed to run on tracks. 
"Automobile" includes a pickup truck or van with a 
registered gross vehicle weight of 6,000 pounds or less. 
Sec. 38. 36 MRSA §1752, sub-§l-F, as enacted by PL 1997, c. 791, Pt. A, §1, is 
repealed. 
Sec. 39. 36 MRS A §1752, sub-§l-G, as enacted by PL 1997, c. 791, Pt. A, §1, is 
repealed. 
Sec. 40. 36 MRSA §1752, sub-§5-C is enacted to read: 
5-C. Loaner vehicle. "Loaner vehicle" means an automobile to be provided to a 
motor vehicle dealer's service customers for short-term use free of charge pursuant to the 
dealer's franchise, as defined in Title 10, section 1171, subsection 6. 
Sec. 41. 36 MRS A §1752, sub-§6-A, as amended by PL 1999, c. 708, §22, is 
further amended to read: 
6-A. Manufacturing facility. "Manufacturing facility" means a site at which are 
located machinery and equipment used directly and primarily in either the production of 
II 
tangible personal property intended to be sold or leased ultimately for final use or 
consumption or the production of tangible personal property pursuant to a contract with 
the United States Federal Government or any agency thereof. It includes the machinery 
and equipment and all machinery, equipment, structures and facilities located at the site 
IS 
and used in support of production or associated with the production. "Manufacturing 
facility" does not include a site at which a retailer is primarily engaged in making retail 
sales of tangible personal property not produced by the retailer. 
Sec. 42. 36 MRSA §1752, sub-§l1,~, as amended by PL 2007, c. 410, §1 and 
affected by §6, is further amended to read: 
B. 
"Retail sale" does not include: 
(I) Any casual sale; 
(2) Any sale by a personal representative in the settlement of an estate, unless 
the sale is made through a retailer, or unless the sale is made in the continuation 
or operation of a business; 
(3) The sale, to a person engaged in the business of renting automobiles, of 
automobiles, integral parts of automobiles or accessories to automobiles, for 
rental or for use in an automobile rented on a short-term basis; 
(4) The sale, to a person engaged in the business of renting video media and 
video equipment, of video media or video equipment for rental; 
(5) 
The sale, to a person engaged in the business of renting or leasing 
automobiles, of automobiles for rental or lease for one year or more; 
(6) The sale, to a person engaged in the business of providing cable or satellite 
television services, of associated equipment for rental or lease to subscribers in 
conjunction with a sale of extended cable or extended satellite television services; 
(7) The sale, to a person engaged in the business of renting furniture, or audio 
media and audio equipment, of furniture, audio media or audio equipment for 
rental pursuant to a rental-purchase agreement as defined in Title 9-A, section 11-
105; eF 
(8) The sale of loaner vehicles to a new vehicle dealer licensed as such pursuant 
to Title 29-A, section 953. For purposes of this subparagraph, "loaner vehicle" 
means an automobile to be provided to the dealer's service customers for short 
term use free of charge pursuant to the dealer's franchise, as defined in Title 10, 
section 1171, subsection 6.~ 
(9) The sale of automobile repair parts used in the performance of repair services 
on an automobile pursuant to an extended service contract sold on or after 
September 20, 2007 that entitles the purchaser to specific benefits in the service 
of the automobile for a specific duration. 
Sec. 43. 36 MRS A §1752, sub-§14, as amended by PL 2005, c. 675, § 1 and 
affected by §2, is further amended to read: 
14. Sale price. "Sale price" means the total amount of a retail sale valued in money, 
whether received in money or otherwise. 
A. 
"Sale price" includes: 
(1) Services which Any consideration for services that are a part of a retail sale; 
and 
(2) All receipts, cash, credits and property of any kind or nature and any amount 
for which credit is allowed by the seller to the purchaser, without any deduction 
on account of the cost of the property sold, the cost of the materials used, labor or 
service cost, interest paid, losses or any other expenses. 
B. 
"Sale price" does not include: 
(1) Discounts allowed and taken on sales; 
(2) 
Allowances in cash or by credit made upon the return of merchandise 
pursuant to warranty; 
(3) The price of property returned by customers, when the full price is refunded 
either in cash or by credit; 
(4) The price received for labor or services used in installing or applying or 
repairing the property sold, if separately charged or stated; 
(5) Any amount charged or coIlected, in lieu of a gratuity or tip, as a specificaIly 
stated service charge, when that amount is to be disbursed by a hotel, metel, 
restaurant or other eating establishment to its employees as wages; 
(6) The amount of any tax imposed by the United States on or with respect to 
retail sales, whether imposed upon the retailer or the consumer, except any 
manufacturers', importers', alcohol or tobacco excise tax; 
(7) The cost of transportation from the retailer's place of business or other point 
from which shipment is made directly to the purchaser, provided that those 
charges are separately stated and the transportation occurs by means of common 
carrier, contract carrier or the United States mail; 
(8) The fee imposed by Title 10, section 1169, subsection 11; 
(9) The fee imposed by section 4832, subsection I; 
(10) The lead-acid battery deposit imposed by Title 38, section 1604, subsection 
2-B; Sf 
(II) Any amount charged or collected by a person engaged in the rental of 
living quarters as a forfeited room deposit or cancellation fee if the prospective 
occupant of the living quarters cancels the reservation on or before the scheduled 
date of arrival~.;...Q[ 
(12) The premium on motor vehicle oil changes imposed by Title 10, section 
1020, subsection 6. 
Sec. 44. 36 MRSA §1752, sub-§20 is amended to read: 
II 
20. Trailer camp. "Trailer camp" means a place with or without service facilities 
where space is offered with or 'Nithout service facilities to the public for tenting or for the 
parking and accommodation of automobile camper trailers which are, motor homes or 
truck campers used for living quarters and the. The rental price shall include includes all 
service charges paid to the lessor. 
Sec. 45. 36 MRSA § 1755, as amended by PL 1997, c. 526, § 14, is further 
amended to read: 
§1755. No registration unless tax paid 
Whenever any tangible personal property ,,,,,hose sale or use is subject to tax under 
chapters 211 to 225 is required by the laws of this State to be registered for use within 
this the State by any law other than this, the applicant for registration, whether or not the 
owner, shall himself be liable for must either pay the sales tax or use tax or shatl prove 
that said the tax is not ewffi.g due. £uc.It The applicant shall file a dealer's certificate or use 
tax certificate with the registering agency a certificate in 5tI€fl !:! form as may be 
prescribed by the State Tax Assessor containing reporting the name of ven6ef the seller, 
the date of purchase, the sale price and 5tI€fl other information as may be pertinent to 
determination of tax liability; and the. The registering agency shall forward SH€-h the 
certificate promptly to the Bureau of Revenue Services. 
Sec. 46. 36 MRS A § 1759, as amended by PL 1979, c. 520, §4, is further amended 
to read: 
§1759. Bonds 
When, in the judgment of the State Tax Assessor, either Either as a condition for 
issuance or subsequent to the issuance of a sel-J.er.s registration certificate under section 
1754-B, it is necessary or advisable for the collection of sales or use taxes or both, he the 
State Tax Assessor may require from a taxpayer a bond written by a surety company 
qualified to do business in this State atld, in 5tI€fl an amount and upon such condition as 
conditions to be determined by the State Tax Assessor may determine assessor. In lieu of 
5tI€fl !:! bond he the assessor may accept, for delivery to the custody of the Treasurer of 
&tate, a deposit of money or securities in 5tI€fl an amount and of SU€-fl !:! kind as he may 
approve acceptable to the assessor. £uc.It The deposit shatl must be accepted by delivered 
to the Treasurer of State, who shall safely keep tHe same i! subject to the instructions of 
the Tax Assessor assessor. 
Sec. 47. 36 MRSA §1760, sub-§21-A, as enacted by PL 2007, c. 410, §3 and 
affected by §6, is amended to read: 
21-A. Certain loaner vehicles. The use of a loaner vehicle provided by a new 
vehicle dealer, as defined in Title 29-A, section 851, subsection 9, to a service customer 
pursuant to a manufacturer's or dealer's warranty. 
For purposes of tHis subsectioA, 
"loaAer vehicle" Has the same meaAiAg as iA sectioA 1752, subsectioA 11, paragraph B, 
subparagrapH (8). 
Sec. 48. 36 MRSA §1760, sub-§31, ~A, as amended by PL 2005, c. 12, Pt. S, 
§ 1, is further amended to read: 
A. 
For use by the purchaser directly and primarily in the production of tangible 
personal property intended to be sold or leased ultimately for final use or 
consumption or in the production of tangible personal property pursuant to a contract 
with the UAited States Federal Government or any agency thereof, or, in the case of 
sales occurring after June 30, 2007, in the generation of radio and television 
broadcast signals by broadcast stations regulated under 47 Code of Federal 
Regulations, Part 73. 
This exemption applies even if the purchaser sells the 
machinery or equipment and leases it back in a sale and leaseback transaction. This 
exemption also applies whether the purchaser agrees before or after the purchase of 
the machinery or equipment to enter into the sale and leaseback transaction and 
whether the purchaser's use of the machinery or equipment in production commences 
before or after the sale and leaseback transaction occurs; and 
Sec. 49. 36 MRSA §1760, sub-§82, as reallocated by RR 1999, c. 1, §48, is 
amended to read: 
82. Sales of property delivered outside this State. Sales of tangible personal 
property when the seller delivers the property to a location outside this State or to the 
United States Postal Service, a common carrier or a contract carrier hired by the seller for 
delivery to a location outside this State, regardless of whether the property is purchased 
F.O.B. shipping point or other point in this State and regardless of whether passage of 
title occurs in this State. This exemption does not apply to any subsequent use of the 
property in this State. 
Sec. 50. 36 MRSA §1765, as amended by PL 2007, c. 375, §3, is further amended 
to read: 
§1765. Trade-in credit 
When one or more items in one of the following items of taAgible persoAal property 
categories are traded in toward the sale price of another of tHe same iciAd of tHe folloVI'iAg 
ttems item in that same category, the tax imposed by this Part must be levied only upon 
the difference between the sale price of the purchased property and the trade-in alIowance 
I 
of the property taken in trade, exeept for. 
This section does not apply to transactions 
between dealers involving exchange of the property from inventory: 
1. Motor vehicles. Motor vehicles; 
3. Watercraft. Watercraft; 
4. Aircraft. Aircraft; 
6. Chain saws. Chain saws; 
7. Special mobile equipment. Special mobile equipment; 
8. Trailers. Trailers; or 
9. Truck campers. Truck campers. 
The trade-in credit allowed by this section is not available unless the items traded are 
II 
in the same category, except that when a truck camper is taken in trade for a camper 
trailer or a camper trailer is taken in trade for a truck camper, the tax must be levied only 
upon the difference between the sale price of the purchased property and the trade-in 
allowance of the property taken in trade. 
IS 
Sec. 51. 36 MRSA §1811, first ~, as amended by PL 2007, c. 410, §5 and 
affected by §6 and amended by c. 444, § I, is repealed and the following enacted in its 
place: 
A tax is imposed on the value of all tangible personal property and taxable services 
sold at retail in this State. The rate of tax is 7% on the value of liquor sold in licensed 
establishments as defined in Title 28-A, section 2, subsection IS, in accordance with Title 
28-A, chapter 43; 7% on the value of rental of living quarters in any hotel, rooming house 
or tourist or trailer camp; 10% on the value of rental for a period of less than one year of 
an automobile, including a loaner vehicle that is provided other than to a motor vehicle 
dealer's service customers pursuant to a manufacturer's or dealer's warranty; 7% on the 
value of prepared food; and 5% on the value of all other tangible personal property and 
taxable services. Value is measured by the sale price, except as otherwise provided. The 
value of rental for a period of less than one year of an automobile is the total rental 
charged to the lessee and includes, but is not limited to, maintenance and service 
contracts, drop-off or pick-up fees, airport surcharges, mileage fees and any separately 
itemized charges on the rental agreement to recover the owner's estimated costs of the 
charges imposed by government authority for title fees, inspection fees, local excise tax 
and agent fees on all vehicles in its rental fleet registered in the State. All fees must be 
disclosed when an estimated quote is provided to the lessee. 
Sec. 52. 36 MRSA §2513, first~, as amended by PL 2007, c. 240, Pt. KKKK, § I 
and affected by §7, is further amended to read: 
Every insurance company or association that does business or collects premiums or 
assessments including annuity considerations in the State, including surety companies 
and companies engaged in the business of credit insurance or title insurance, shall, for the 
privilege of doing business in this State, and in addition to any other taxes imposed for 
5tl€fi that privilege, pay a tax upon all gross direct premiums including annuity 
considerations, whether in cash or otherwise, on contracts written on risks located or 
resident in the State for insurance of life, annuity, fire, casualty and other risks at the rate 
of 2% a year. Every surplus lines insurer that does business or collects premiums in the 
State shall, for the privilege of doing business in this State, and in addition to any other 
taxes imposed for 5tl€fi that privilege, pay a tax upon all gross direct premiums, whether 
in cash or otherwise, on contracts written on risks located or resident in the State at the 
rate of 3% a year. The tax must be paid by the insurer's licensed producer 'Nith surplus 
.J-i.He.s- authority pursuant to Title 24 /'c, section 2016. The producer of those contracts 
must collect the tax and report and pay the tax to the State Tax Assessor as provided in 
section 2521-A. For purposes of this section, the term "annuity considerations" includes 
amounts paid to an insurance company when received for the purchase of a contract that 
may result in an annuity, even when the annuitization never occurs or does not occur until 
some time in the future and the amounts are in the meantime applied to an investment 
vehicle other than an annuity. 
This section does not apply to mutual fire insurance 
companies subject to tax under section 2517 or to captive insurance companies formed or 
licensed under Title 24-A, chapter 83 or under the laws of another state. 
Sec. 53. 36 MRS A §2513-A, as enacted by PL 1987, c. 481, §4, is amended to 
read: 
§2513-A. Tax on premiums of risk retention groups 
Each risk retention group, as defined in Title 24-A, section 6093, shall be ~ liable for 
payment of premium taxes with respect to direct business for risks resident or located 
wi-tft.ffi in this State at the same rate and subject to the same interest,.fffies and penalties 
for nonpayment as that applicable to authorized insurers. Each risk retention group shall 
file an annual report, on or before March +st 15th, file with the State Tax Assessor and 
the Superintendent of Insurance and the Treasurer of State containing a sv"om statement 
of the gross premiums charged for coverage placed, and the gross return premiums on the 
insurance canceled, during, on forms prescribed by the assessor, a return covering the 
year ending on the preceding December 31 st. At the time of filing the repert return, each 
risk retention group shall pay to the Treasurer of State assessor the applicable percentage 
of the difference between the gross and return premiums reported for ~ business 
transacted during tfle that year. 
Sec. 54. 36 MRSA §2521-A, as amended by PL 2007, c. 240, Pt. KKKK, §5 and 
affected by §7 and amended by c. 437, §12 and affected by §22, is repealed and the 
following enacted in its place: 
§2521-A. Returns; payment of tax 
Every insurance company, association, producer or attorney-in-fact of a reciprocal 
insurer subject to the tax imposed by this chapter shall on or before the last day of each 
April, the 25th day of each June and the last day of each October file with the State Tax 
Assessor, on forms prescribed by the assessor, a return for the quarter ending on the last 
day of the preceding calendar month, except for the return due on the 25th day of June, 
which is for the quarter ending June 30th. A final return must be filed on or before March 
II 
15th, covering the prior calendar year. The 3 quarterly returns may be on an estimated 
basis, as long as each April and June installment equals 35% of the total tax paid for the 
preceding calendar year or at least 35% of the total tax to be paid for the current calendar 
year and each October installment equals 15% of the total tax paid for the preceding 
calendar year or at least 15% of the total tax to be paid for the current calendar year. 
At the time of filing the returns, each insurance company, association, producer or 
attorney-in-fact of a reciprocal insurer shall pay to the assessor the amount of tax shown 
due. 
An insurance company, association, producer or attorney-in-fact of a reciprocal 
insurer whose annual tax liability under this chapter does not exceed $1,000 may file an 
annual return with payment on or before March 15th covering the prior calendar year. 
Sec. 55. 36 MRSA §2551, sub-§l-C is enacted to read: 
I-C. Ancillary service. "Ancillary service" means a service that is associated with or 
incidental to the provision of telecommunications services, including, but not limited to, 
detailed telecommunications billing service, directory assistance, vertical service and 
voice mail service. 
Sec. 56. 36 MRSA §2551, sub-§l-D is enacted to read: 
I-D. 
Conference bridging service. "Conference bridging service" means an 
ancillary service that links 2 or more participants in an audio or video conference call and 
may include the provision of a telephone number. "Conference bridging service" does not 
include the telecommunications services used to reach the conference bridge. 
Sec. 57. 36 MRSA §2551, sub-§l-E is enacted to read: 
I-E. Detailed telecommunications billing service. "Detailed telecommunications 
billing service" means an ancillary service of separately stating information pertaining to 
individual calls on a customer's billing statement. 
Sec. 58. 36 MRSA §2551, sub-§l-F is enacted to read: 
I-F. 
Directory assistance. "Directory assistance" means an ancillary service of 
providing telephone number information or address information or both. 
Sec. 59. 36 MRSA §2551, sub-§5-A is enacted to read: 
5-A. International telecommunications service. "International telecommunications 
service" means a telecommunications service that originates or terminates in the United 
States and terminates or originates outside the United States, respectively. For purposes 
of this subsection, "United States" includes a territory or possession of the United States. 
Sec. 60. 36 MRSA §2551, sub-§5-B is enacted to read: 
5-B. 
Interstate telecommunications service. "Interstate telecommunications 
service" means a telecommunications service that originates in one state, territory or 
fl-,-,,:;essioll of the Uniteli States and tt:nnlila1es ii, a different Slatt. territory or p05sessicn 
of the United States. For purQQses of this subsection. "state" includes the District of 
3'::' 9 Lt!Tl1 b i ~ 
Sec. 61. 36 MRSA §2551, sub-§7, as enacted by PL 2003, c. 673, Pt. V, §25 and 
affected by §29, is repealed. 
Sec. 62. 36 MRSA §2551, sub-§15, as amended by PL 2007, c. 438, §54, IS 
further amended to read: 
15. Sale price. "Sale price" means the total amount of consideration, including cash, 
credit, property and services, for which personal property or services are sold, leased or 
rented, valued in money, whether received in money or otherwise, without any deduction 
for the cost of materials used, labor or service cost, interest, losses and any other expense 
of the seller. "Sale price" includes any consideration for services that are a part of a sale. 
"Sale price" does not include: 
A. Discounts allowed and taken on sales; 
B. Allowances in cash or by credit made upon the return of services pursuant to 
warranty; 
C. The price of services rejected by customers when the full sale price is refunded 
either in cash or by credit; 
D. The amount of any tax imposed by the United States or the State on or with 
respect to the sale of a service, whether imposed upon the seller or the consumer; or 
E. The cost of transportation from the service provider's place of business or other 
point from which shipment is made directly to the purchaser, as long as those charges 
are separately stated and the transportation occurs by means of common carrier, 
contract carrier or the United States Postal Service. 
Sec. 63. 36 MRSA §2551, sub-§20, as enacted by PL 2003, c. 673, Pt. V, §25 
and affected by §29, is repealed. 
Sec. 64. 36 MRS A §2551, sub-§20-A is enacted to read: 
20-A. 
Telecommunications services. "Telecommunications services" means the 
electronic transmission, conveyance or routing of voice, data, audio, video or any other 
information or signals to a point or between or among points. "Telecommunications 
services" includes transmission, conveyance or routing in which computer processing 
applications are used to act on the form, code or protocol of the content for purposes of 
transmission, conveyance or routing without regard to whether the service is referred to 
as "Voice over Internet Protocol" services or is classified by the Federal Communications 
Commission as enhanced or value added. "Telecommunications services" does not 
include: 
7 
A. 
Data processing and information services that allow data to be generated, 
8 
acquired, stored, processed or retrieved and delivered by an electronic transmission to 
a purchaser when the purchaser's primary purpose for the underlying transaction is to 
obtain the processed data or information; 
B. Installation or maintenance of wiring or equipment on a customer's premises; 
C. Tangible personal property; 
D. Advertising, including, but not limited to, directory advertising; 
E. Billing and collection services provided to 3rd parties; 
F. Internet access service; 
G. Radio and television audio and video programming services, regardless of the 
medium, including the furnishing of transmission, conveyance and routing of those 
services by the programming service provider. Radio and television audio and video 
programming services include, but are not limited to, cable service as defined in 47 
United States Code, Section 522(6) and audio and video programming services 
delivered by commercial mobile radio service providers as defined in 47 Code of 
Federal Regulations, Section 20.3; 
H. Ancillary services; or 
I. Digital products delivered electronically, including, but not limited to, software, 
music, video, reading materials or ringtones. 
Sec. 65. 36 MRSA §2551, sub-§20-B is enacted to read: 
20-B. Vertical service. "Vertical service" means an ancillary service that is offered 
in connection with one or more telecommunications services and offers advanced calling 
features that allow customers to identify callers and to manage multiple calls and call 
connections. "Vertical service" includes conference bridging service. 
Sec. 66. 36 MRSA §2551, sub-§21-A is enacted to read: 
21-A. 
Voice mail service. "Voice mail service" means an ancillary service that 
enables the customer to store, send or receive recorded messages. "Voice mail service" 
does not include a vertical service that the customer may be required to have in order to 
use the voice mail service. 
Sec. 67. 36 MRSA §2552, sub-§l, ~J, as enacted by PL 2005, c. 386, Pt. S, §6 
and affected by §9, is amended to read: 
J. 
Personal support services; ami 
Sec. 68. 36 MRSA §2552, sub-§l, ~, as enacted by PL 2005, c. 386, Pt. S, §6 
and affected by §9, is amended to read: 
K. 
Residential training services~; and 
Sec. 69. 36 MRSA §2552, sub-§l, ~ 
is enacted to read: 
L. Ancillary services. 
Sec. 70. 36 MRS A §2556, sub-§4, as enacted by PL 2003, c. 673, Pt. Y, §25 and 
affected by §29, is amended to read: 
4. 
Bundled services. Notwithstanding any other provision of this PaJ:t chapter, 
otherwise nontaxable charges that are aggregated with and not separately stated from 
taxable mobile telecommunications charges are subject to taxation unless the home 
service provider can, to the satisfaction of the assessor, reasonably identify such charges 
from books and records kept in the regular course of its business. A customer may not 
rely upon the nontaxability of bundled services unless the customer's home service 
provider separately states the otherwise nontaxable services or the home service provider 
elects, after receiving written notice from the customer in the form required by the 
provider, to provide verifiable data based upon the home service provider's books and 
records that are kept in the regular course of business and that reasonably identify the 
nontaxable charges. 
Sec. 71. 36 MRSA §2557, sub-§30, as amended by PL 2005, c. 218, §35, is 
further amended to read: 
30. Sales for resale. Sales of services to another service provider for resale; aM 
Sec. 72. 36 MRS A §2557, sub-§31, as amended by PL 2005, c. 622, § 12, is 
further amended to read: 
31. Construction contracts with exempt organizations. Sales to a construction 
contractor or its subcontractor of fabrication services that are to be physically 
incorporated in, and become a permanent part of, real property for sale to any 
organization or government agency provided exemption under this section, except as 
otherwise provided by section 2560~; 
Sec. 73. 36 MRSA §2557, sub-§32 is enacted to read: 
32. Prepaid calling service. Sales of prepaid calling service; 
Sec. 74. 36 MRSA §2557, sub-§33 is enacted to read: 
33. 
International 
telecommunications 
telecommunications service; and 
service. 
Sec. 75. 36 MRSA §2557, sub-§34 is enacted to read: 
Sales 
of international 
34. Interstate telecommunications service. Sales of interstate telecommunications 
service. 
Sec. 76. 
MRS A §2865, as amended by PL 1985, c. 764, §21, IS further 
amended to read: 
§2865. Mine site and valuation determinations 
The State Tax Assessor shall make the following determinations. 
I 
1. Mine site. He The State Tax Assessor shall determine the area of a mine site, 
taking into account all relevant information, including, but not limited to, plans or permits 
approved under the site location of development law, Title 38, chapter 3, subchapter I, 
Article 6. 
He The assessor shall give notice to a the mining company and to the 
municipality in which a the mine site is located, in writing, of Itts the determination aOO 
tflat. The assessor's determination shall be ~ reviewable under section 151. 
2. Valuation. If a mine site is located in a municipality, ~ the assessor shall 
determine the valuation of mining property and the percentage of that valuation 
represented by land and buildings that are not exempt from property taxes. That valuation 
of land and buildings sfial.l must be applied in determining the property taxes. A The 
II 
municipality in which a the mine site is located may appeal that determination to the State 
Board of Property Tax Review as provided tffidef in chapter 101, subchapter l-I-A 2-A. 
Sec. 77. 36 MRS A §2903, sub-§4, ~, as enacted by PL 1997, c. 738, §4, is 
amended to read: 
B. 
Brought into this State in the ordinary standardized standard equipment fuel tank 
attached to and forming a part of a motor vehicle and used in the operation of that 
vehicle in this State; 
Sec. 78. 36 MRSA §2903, sub-§4,~, as amended by PL 2003, c. 588, §12, is 
further amended to read: 
D. 
Bought or used by any person to propel jet or turbojet engine an aircraft in 
international flights. For purposes of this paragraph, fuel is bought or used to propel 
an aircraft in an international flight if either the point of origin of the flight leg 
immediately preceding the delivery of the fuel into the fuel tanks of the aircraft or the 
destination point of the flight leg immediately following the delivery of the fuel into 
the fuel tanks of the aircraft is outside the United States; 
Sec. 79. 36 MRSA §3202, sub-§2-D is enacted to read: 
2-D. Gross gallons. "Gross gallons" means actual measured gallons of special fuel 
received, sold or used, without adjustment for temperature or barometric pressure. 
Sec. 80. 36 MRSA §3202, sub-§5-C is enacted to read: 
5-C. Retail dealer. "Retail dealer" means a person that operates in this State a place 
of business from which special fuel is sold at retail and delivered directly into the fuel 
tanks of motor vehicles or watercraft. A retailer or supplier is a retail dealer only with 
respect to special fuel delivered into a retail storage tank operated by that retailer or 
supplier or into a retail storage tank of a consignee or commission agent. 
Sec. 81. 36 MRSA §3203, sub-§5, as amended by PL 1999, c. 414, §27, IS 
further amended to read: 
5. Allowance for certain losses of undyed distillates. An allowance of not more 
than 114 of I % from the amount of undyed diesel fuel distillates received by a supplier, 
plus 1/4 of I % on all transfers in vessels, tank cars or full tank truck loads by the supplier 
in the regular course of business from one of the supplier's places of business to another 
of the supplier's places of business within the State, may be allowed by the assessor to 
cover the loss through shrinkage, evaporation or handling sustained by the supplier. The 
total allowance for these losses must be supported by documentation satisfactory to the 
assessor and may not exceed 112 of 1 % of the receipts by the supplier. The allowance 
must be calculated on an annual basis. A further deduction may not be allowed unless the 
assessor is satisfied upon definite proof submitted to the assessor that a further deduction 
should be allowed for a loss sustained through fire, accident or some unavoidable 
calamity. 
Sec. 82. 36 MRSA §4641-B, sub-§l, as enacted by PL 2001, c. 559, Pt. I, §4 and 
affected by § 15, is amended to read: 
1. Transfer of real property by deed. The State Tax Assessor shall provide for the 
collection of the tax on the transfer of real property by deed by each register of deeds aOO 
for that purpose may provide for the installation of a meter machine in each registry 
effi.€e. When any deed is offered for recordation, the register of deeds shall ascertain and 
compute the amount of tax due on the deed and shall collect that amount. The amount of 
tax must be computed on the value of the property as set forth in the declaration of value 
prescribed by section 4641-D. Payment of tax must be evidenced by affixing suoh indicia 
an indicium of payment as prescribed by the assessor to the declaration of value provided 
for in section 4641-D. 
Sec. 83. 36 MRSA §4641-B, sub-§4, as amended by PL 2007, c. 240, Pt. H, §1 
and c. 427, § I, is repealed and the following enacted in its place: 
4. Distribution of State's share of proceeds. The State Tax Assessor shall pay all 
net receipts received pursuant to this section to the Treasurer of State, and shall at the 
same time provide the Treasurer of State with documentation showing the amount of 
revenues derived from the tax imposed by section 4641-A, subsection 1 and the amount 
of revenues derived from the tax imposed by section 4641-A, subsection 2. The Treasurer 
of State shall credit 112 of the revenues derived from the tax imposed by section 4641-A, 
subsection 1 to the General Fund and shall monthly pay the remaining 112 of those 
revenues to the Maine State Housing Authority, which shall deposit the funds in the 
Housing Opportunities for Maine Fund created in Title 30-A, section 4853, except that in 
fiscal year 2007-08 and fiscal year 2008-09, $5,000,000 of the remaining 112 of those 
revenues must be transferred to the General Fund before any payments are made to the 
Maine State Housing Authority. Neither the Governor nor the Legislature may divert the 
revenues payable to the Housing Opportunities for Maine Fund to any other fund or for 
any other use. Any proposal to enact or amend a law to allow distribution of less than 1/2 
of the revenues derived from the tax imposed by section 4641-A, subsection 1 to the 
Housing Opportunities for Maine Fund must be submitted to the Legislative Council and 
to the joint standing committee of the Legislature having jurisdiction over affordable 
housing matters at least 30 days prior to any vote or public hearing on the proposal. The 
Treasurer of State shall credit to the General Fund all of the revenues derived from the tax 
imposed by section 4641-A, subsection 2. 
Sec. 84. 36 MRSA §5142, sub-§3-A, as amended by PL 2007, c. 240, Pt. Y, § 1, 
is further amended to read: 
3-A. Gain or loss on sale of partnership interest. Notwithstanding subsection 3, 
the gain or loss on the sale of a partnership interest is sourced to this State in an amount 
equal to the gain or loss multiplied by the ratio obtained by dividing the original cost of 
partnership tangible property located in Maine by the original cost of partnership tangible 
property everywhere, determined at the time of the sale. Tangible property includes 
property owned or rented and is valued in accordance with section 5211, fufffief 
subsection 10. 
If more than 50% of the value of the partnership's assets consist of 
intangible property, gain or loss from the sale of the partnership interest is sourced to this 
State in accordance with the sales factor of the partnership for its first full tax period 
immediately preceding the tax period of the partnership during which the partnership 
interest was sold. For purposes of this subsection, the sales factor of a partnership is 
determined in accordance with section 5211, subsections 14, 15 and 16-A. 
This 
subsection does not apply to the sale of a limited partner's interest in an investment 
partnership where more than 80% of the value of the partnership'S total assets consists of 
intangible personal property held for investment, except that such property cannot include 
an interest in a partnership unless that partnership is itself an investment partnership. 
If the apportionment provisions of this section do not fairly represent the extent of the 
partnership's business activity in this State, the taxpayer may petition for, or the State Tax 
Assessor may require, in respect to all or any part of the partnership'S business activity the 
employment of any other method to effectuate an equitable apportionment to this State of 
the partner's income from the sale of the partnership interest. 
Sec. 85. 36 MRSA §5211, sub-§9, as repealed by PL 2007, c. 240, Pt. Y, §3 and 
affected by § 15, is reenacted to read: 
9. Property factor. The property factor is a fraction, the numerator of which is the 
average value of the taxpayer's real and tangible personal property owned or rented and 
used in this State during the tax period and the denominator of which is the average value 
of all the taxpayer's real and tangible personal property owned or rented and used during 
the tax period. 
Sec. 86. 36 MRSA §5211, sub-§10, as repealed by PL 2007, c. 240, Pt. Y, §4 and 
affected by § 15, is reenacted to read: 
10. Property valuation at original cost. Property owned by the taxpayer is valued 
at its original cost. Property rented by the taxpayer is valued at 8 times the net annual 
rental rate. Net annual rental rate is the annual rental rate paid by the taxpayer. 
Sec. 87. 36 MRSA §5211, sub-§l1, as repealed by PL 2007, c. 240, Pt. Y, §5 and 
affected by § 15, is reenacted to read: 
11. Determination of average value of property. The average value of property 
shall be determined by averaging the values at the beginning and ending of the tax period 
but the Tax Assessor may require the averaging of monthly values during the tax period if 
reasonably required to reflect properly the average value ofthe taxpayer's property. 
Sec. 88. 36 MRS A §5211, sub-§12, as repealed by PL 2007, c. 240, Pt. V, §6 and 
affected by § 15, is reenacted to read: 
12. Payroll factor. The payroll factor is a fraction, the numerator of which is the 
total amount paid in this State during the tax period by the taxpayer for compensation, 
and the denominator of which is the total compensation paid everywhere during the tax 
period. Eighty-five percent of any amounts paid pursuant to a contract by the taxpayer to 
an employee-leasing company for leased employees, and 100% of the amount paid 
pursuant to a contract to a temporary services company for temporary employees, must be 
included in the taxpayer's payroll factor. 
The payroll factor of an employee-leasing 
company or a temporary services company must exclude compensation paid to leased or 
temporary employees who are providing personal services to client companies. 
Sec. 89. 36 MRSA §5211, sub-§13, as repealed by PL 2007, c. 240, Pt. V, §7 and 
affected by § 15, is reenacted to read: 
13. When compensation paid in this State. Compensation is paid in this State, if: 
A. 
The individual's service is performed entirely within the State; or 
B. The individual's service is performed both within and without the State, but the 
service performed without the state is incidental to the individual's service within the 
State; or 
C. 
Some of the service is performed in the State and the base of operations or, if 
there is no base of operations, the place from which the service is directed or 
controlled is in the State, or the base of operations or the place from which the service 
is directed or controlIed is not in any state in which some part of the service is 
performed, but the individual's residence is in this State. 
Sec. 90. 36 MRSA §5215, sub-§6, as amended by PL 1993, c. 672, § 1 and 
affected by §2, is further amended to read: 
6. 
Recapture. If, during any taxable year, any qualified investment property is 
disposed of, or otherwise ceases to be property covered by subsection ~ J, paragraph A 
with respect to the taxpayer, before the end of the useful life that was taken into account 
in computing the credit under subsection 1, then the tax under this Part for that taxable 
year must be increased by an amount equal to the aggregate decrease in the credit allowed 
under subsection 1 for all prior taxable years that would have resulted solely from 
substituting for the useful life, in determining qualified investment under the Internal 
Revenue Code of 1954 as of December 31, 1985, the period beginning with the time the 
property was placed in service by the taxpayer and ending with the time the property 
ceased to be property covered by subsection ~ J. 
Sec. 91. 36 MRSA §5219-K, sub-§l, as amended by PL 1999, c. 127, Pt. B, §9, 
is further amended to read: 
1. Credit allowed. A taxpayer is allowed a credit against the tax due under this Part 
equal to the sum of 5% of the excess, if any, of the qualified research expenses for the 
taxable year, over the base amount~ and 7.5% of the basic research payments determined 
under sl:IbsectioR (e)(l)(A) of SectioR 41 of the Code, Section 4l(e)(l)(A). The term 
"base amount" means the average amount per year spent on qualified research expenses 
over the last previous 3 taxable years by the taxpayer. +fie As used in this section, unless 
the context otherwise indicates, the terms "qualified research expenses," "qualified 
organization base period amount," "basic research" and any other terms affecting the 
calculation of the credit, I:IRless the cORtext otherwise reql:lires, have the same meanings 
as under the Code, Section 41 of the Code, as amended and in effect on December 3 I, 
+994, but eruy apply only to expenditures for research conducted in this State. 
In 
determining the amount of the credit allowable under this section, the State Tax Assessor 
may aggregate the activities of all corporations that are members of a controlled group of 
corporations, as defined by subseetion (D(l)(A) of Scction 41 of the Code, Section 
m( 1 )(A) and in addition may aggregate the activities of all entities, whether or not 
incorporated, that are under common control, as defined by subsection (D( 1 )(B) of 
Section 41 of the Code, Section 41 m( 1 )(B ). 
Sec. 92. 36 MRSA §5219-K, sub-§3, as amended by PL 1997, c. 504, §18, is 
further amended to read: 
3. Limitation on credit allowed. The credit allowed under this section is limited to 
100% of a corporation's first $25,000 of tax due, as determined before the allowance of 
any credits, plus 75% of the corporation'S tax due, as determined in excess of $25,000. 
The State Tax Assessor assessor shall adopt rules similar to those authorized under 
Section 38(c) (3)(B) of the Code, Section 38(c)(5)(B) for purposes of apportioning the 
$25,000 among members of a controlled group. 
Sec. 93. 36 MRSA §5219-L, sub-§l, as enacted by PL 1997, c. 557, Pt. B, § I 0 
and affected by § 14 and Pt. G, § 1, is amended to read: 
1. Super credit allowed for substantial expansions of research and development. 
A taxpayer quali1)
ring that qualifies for a the research expense tax credit allowed under 
section 5219-K is allowed an additional credit against the tax due under this Part equal to 
the excess, if any, of the qualified research expenses for the taxable year over the super 
credit base amount. For purposes of this section, "super credit base amount" means the 
average amount spent on qualified research expenses by the taxpayer in the 3 taxable 
years immediately preceding the effective date of this section, increased by 50%. +he 
sl:lper credit allo'Ned I:IAder this sl:IbsectioA applies only to the expenditures for research 
conducted in this State. 
The term For purposes of this section, "qualified research 
expenses" has the same meaning as under Section 41 of the Code, as amended and in 
effect OA December 31, 1994 Section 41 but applies only to expenditures for research 
conducted in this State. 
Sec. 94. 36 MRSA §5256, sub-§3, as amended by PL 1981, c. 698, § 188, IS 
further amended to read: 
3. Termination of taxable year for jeopardy. Notwithstanding subsections 1 and 2, 
if the assessor makes a determination of jeopardy and terminates the taxpayer's taxable 
year under section 141, relating to tax in jeopardy 145, the tax 5flatt must be computed for 
the period determined by suOO that action. 
Sec. 95. 36 MRSA §6651, sub-§l, as amended by PL 2007, c. 372, § 1 and c. 
437, §21, is repealed and the following enacted in its place: 
1. Eligible property. "Eligible property" means qualified business property first 
placed in service in the State, or constituting construction in progress commenced in the 
State, after April I, 1995 but does not include property that is eligible business equipment 
as defined in section 691, subsection 1. "Eligible property" includes, without limitation, 
repair parts, replacement parts, additions, accessions and accessories to other qualified 
business property placed in service on or before April 1, 1995 if the part, addition, 
accession or accessory is first placed in service, or constitutes construction in progress, in 
the State after April 1, 1995, unless that property is eligible business equipment as 
defined in section 691, subsection 1. "Eligible property" includes used qualified business 
property if the qualified business property was first placed in service in the State, or 
constituted construction in progress commenced in the State, after April 1, 1995 but does 
not include property that is eligible business equipment as defined in section 691, 
subsection I. "Eligible property" also includes inventory parts. 
Sec. 96. Retroactivity. Those sections of this Act that amend the Maine Revised 
Statutes, Title 36, section 1752, subsection 11, paragraph B and section 1765 apply 
retroactively to September 20, 2007. That section of this Act that repeals and replaces 
Title 36, section 1811, first paragraph, applies retroactively to September 20, 2007. That 
section of this Act that repeals and replaces Title 36, section 2521-A applies to tax 
periods beginning on or after January 1,2007. Those sections of this Act that reenact 
Title 36, section 5211, subsections 9 to 13 apply retroactively to June 7, 2007. 
SUMMARY 
This bill makes various changes and corrections to the laws governing taxation, 
including repealing superfluous or redundant definitions and effective dates, updating 
references to the Internal Revenue Code and correcting grammar, punctuation and 
internal cross-references. In addition, this bill also: 
1. Clarifies the effect of a determination by the State Tax Assessor that collection of 
a tax will be jeopardized by delay; 
2. Relocates a provision relating to service charges imposed by municipalities for 
I 
municipal services provided with respect to certain tax-exempt property that is 
inappropriately located in a statute providing exemptions for property of certain 
institutions and organizations; 
3. Replaces the imprecise term "camp trailer" with the defined term "camper trailer"; 
4. Corrects a conflict created by Public Law 2007, chapters 425 and 438, which 
affected the same provision of law, by incorporating changes made by both laws; 
5. 
Eliminates certain defunct organizations from a list of exempt institutions and 
organizations; 
6. Eliminates a reference to the Commissioner of Finance, an office that no longer 
exists; 
7. 
Clarifies the computation of "property tax revenue lost" for purposes of 
determining the reimbursement to municipalities with respect to the business equipment 
tax exemption; 
8. Amends the excise tax law to reflect the fact that licensing of common carriers has 
been transferred from the Public Utilities Commission to the Department of 
Transportation; 
9. Clarifies certain requirements relating to payment of excise taxes on aircraft; 
10. Clarifies that the same definition of "automobile" applies throughout the sales 
and use tax law and relocates the definition of "loaner vehicle" to the definitions section; 
11. Clarifies that repair parts used in the performance of repair services under certain 
extended warranty contracts are not deemed to be "sold" for purposes of the sales and use 
tax law; 
12. Clarifies requirements relating to payment of use tax on property registered for 
use in this State; 
13. Clarifies requirements relating to furnishing of bonds by certain taxpayers; 
14. Clarifies that the sales tax exemption for property delivered outside the State 
does not apply to subsequent use of the property in the State. The proposed change 
reflects current Maine Revenue Services administrative policy; 
15. Restores a trade-in credit that was inadvertently repealed by legislation enacted 
in the First Regular Session of the I23rd Legislature; 
16. 
Clarifies the responsibilities of a surplus lines producer under the insurance 
company tax law. The proposed changes reflect current Maine Revenue Services 
administrative policy; 
17. Clarifies that the annual return filed by risk retention groups is to be filed with 
the State Tax Assessor rather than the Treasurer of State and that the due date of the 
return is March 15th rather than March 1 s1. The proposed changes make the requirements 
similar to those for other insurance taxes and reflect current Maine Revenue Services 
administrative policy; 
18. Corrects a conflict created by Public Law 2007, chapters 240 and 437, which 
affected the same provision of law, by incorporating changes made by both laws; 
19. 
Amends 
prOVISIOns 
of the 
service 
provider 
tax 
law 
relating 
to 
telecommunications services to reflect cutTent telecommunications technology; 
20. Clarifies the meaning of "international flight" for purposes of exempting certain 
fuel used in international flights from the gasoline tax; 
21. Clarifies provisions of the special fuel tax law by adding definitions; 
22. Corrects a conflict created by Public Law 2007, chapters 440 and 444, which 
affected the same provision of law, by incorporating changes made by both laws; 
24. Corrects a conflict created by Public Law 2007, chapters 372 and 437, which 
affected the same provision of law, by incorporating changes made by both laws; 
25. Clarifies the authority of the State Tax Assessor to include in the establishment 
of the applicable tax mill rate in the unorganized territory the costs of payments that the 
unorganized territory district is obligated to make under a tax increment financing 
agreement and clarifies that the Treasurer of State is authorized to make the payments 
obligated under an unorganized territory tax increment financing agreement after the tax 
increment financing taxes are paid; 
26. Clarifies that the premium charged for motor vehicle oil changes is not included 
in the sale price for purposes of the sales tax; and 
27. Reenacts definitions that were repealed mistakenly in Public Law 2007, chapter 
240.