An Act To Create the Maine Board of Tax Appeals
Maine Legislature, Session 125, LD 1750
Committee: Taxation
Sponsors: KNIGHT
Amends: 5 MRSA §12004-B, 36 MRSA §111, 36 MRSA §151, 36 MRSA §151-D, 36 MRSA §151-B, 36 MRSA §151-C, 36 MRSA §191

Legislative Document 
No. 1750
H.P. 1291 
House of Representatives, January 9, 2012
An Act To Create the Maine Board of Tax Appeals 
(EMERGENCY) 
Submitted by the Department of Administrative and Financial Services pursuant to Joint 
Rule 204. 
Reference to the Committee on Taxation suggested and ordered printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative KNIGHT of Livermore Falls. 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, the Independent Appeals Office, created in Public Law 2011, chapter 439, 
is to assume the responsibility of overseeing state tax appeals on July 1, 2012; and  
Whereas, this Act eliminates the Independent Appeals Office and establishes the 
Maine Board of Tax Appeals in its place and, to comply with federal law, removes 
provisions that allow for the dissemination of confidential tax information; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  5 MRSA §12004-B, sub-§10 is enacted to read: 
10.   
Sec. 2.  36 MRSA §111, sub-§1-C is enacted to read: 
1-C.  Board.  "Board" means the Maine Board of Tax Appeals as established in Title 
5, section 12004-B, subsection 10. 
Sec. 3.  36 MRSA §151, as amended by PL 2011, c. 380, Pt. J, §5 and repealed and 
replaced by c. 439, §2 and affected by §12, is repealed and the following enacted in its 
place: 
§151.  Review of decisions of State Tax Assessor 
1.  Petition for reconsideration.  A person who is subject to an assessment by the 
State Tax Assessor or entitled by law to receive notice of a determination of the assessor 
and who is aggrieved as a result of that action may request in writing, within 60 days after 
receipt of notice of the assessment or the determination, reconsideration by the assessor 
of the assessment or the determination.  If a person receives notice of an assessment and 
does not file a petition for reconsideration within the specified time period, a review is 
not available in Superior Court regardless of whether the taxpayer subsequently makes 
payment and requests a refund. 
2.  Reconsideration by division.  If a petition for reconsideration is filed within the 
specified time period, the assessor shall reconsider the assessment or the determination as 
provided in this subsection. 
Maine Board of Tax Appeals 
$100/Day 
MRSA §151-D
A.  Upon receipt by the assessor, all petitions for reconsideration must be forwarded 
for review and response to the division in the bureau from which the determination 
issued. 
B.  Within 90 days of receipt of the petition for reconsideration by the responding 
division, the division shall approve or deny, in whole or in part, the relief requested.  
Prior to rendering its decision and during the 90 days, the division may attempt to 
resolve issues with the petitioner through informal discussion and settlement 
negotiations with the objective of narrowing the issues for an appeals conference or 
court review, and may concede or settle individual issues based on the facts and the 
law, including the hazards of litigation.  By mutual consent of the division and the 
petitioner, the 90 days may be extended for good cause, such as to allow further 
factual investigation or litigation of an issue by that or another taxpayer pending in 
court. 
C.  If the matter between the division and the petitioner is not resolved within the 
90-day period, and any extension thereof, the petitioner may consider the petition for 
reconsideration denied.  The petitioner may not consider the petition for 
reconsideration denied after either the reconsidered decision has been received by the 
petitioner or the expiration of 9 years following the filing of the petition for 
reconsideration, whichever occurs first.  A petition for reconsideration considered 
denied pursuant to this paragraph constitutes final agency action.  A petitioner elects 
to consider the petition for reconsideration denied by: 
(1)  For a small claim request, filing a petition for review in Superior Court.  For 
purposes of this subparagraph, "small claim request" has the same meaning as in 
paragraph E; or 
(2)  For all other requests: 
(a)  Filing a statement of appeal with the board; or 
(b)  Filing a petition for review in Superior Court. 
D.  A reconsideration by the division is not an adjudicatory proceeding within the 
meaning of that term in the Maine Administrative Procedure Act. 
E.  A reconsidered decision rendered on any request other than a small claim request 
constitutes the assessor's final determination, subject to review by either the board or 
the Superior Court.  A reconsidered decision rendered on a small claim request 
constitutes the assessor's final determination and final agency action and is subject to 
review by the Superior Court in accordance with the Maine Administrative Procedure 
Act.  For purposes of this paragraph, "small claim request" means a petition for 
reconsideration when: 
(1)  The amount of tax or refund request in controversy, exclusive of interest or 
penalty, is less than $5,000; 
(2)  The only issue raised by the petition for reconsideration is waiver of interest 
or penalties; or 
(3)  The only issue raised by the petition for reconsideration is whether the 
request for refund or other requested relief is barred by the statute of limitations. 
F.  A person who wishes to appeal a reconsidered decision under this section: 
(1)  To the board must file a written statement of appeal with the board within 60 
days after receipt of the reconsidered decision; or 
(2)  Directly to the Superior Court must file a petition for review in the Superior 
Court within 60 days after receipt of the reconsidered decision. 
If a person does not file a request for review with the board or the Superior Court 
within the time period specified in this paragraph, the reconsidered decision becomes 
final and no further review is available. 
G.  Upon receipt of a statement of appeal or petition for review filed by a person 
pursuant to paragraph F, the board or Superior Court shall conduct a de novo hearing 
and make a de novo determination of the merits of the case.  The board or Superior 
Court shall enter those orders and decrees as the case may require.  The burden of 
proof is on the person, except as otherwise provided by law. 
Sec. 4.  36 MRSA §151-B, as enacted by PL 2011, c. 439, §3 and affected by §12, 
is repealed. 
Sec. 5.  36 MRSA §151-C, sub-§1, as enacted by PL 2011, c. 439, §4 and 
affected by §12, is amended to read: 
1.  Appointment.  The Commissioner of Administrative and Financial Services shall 
hire the taxpayer advocate as an employee of the bureau.  The taxpayer advocate need not 
be an attorney. 
Sec. 6.  36 MRSA §151-D is enacted to read: 
§151-D.  Maine Board of Tax Appeals 
1.  Board established.  The Maine Board of Tax Appeals, established in Title 5, 
section 12004-B, subsection 10, is established as an independent board within the 
Department of Administrative and Financial Services and is not subject to the supervision 
or control of the bureau.  The purpose of the board is to provide taxpayers with a fair 
system of resolving controversies with the bureau and to ensure due process. 
2.  Members; appointment.  The board consists of 3 members appointed by the 
Governor, subject to review by the joint standing committee of the Legislature having 
jurisdiction over taxation matters and confirmation by the Legislature.  No more than 2 
members of the board may be members of the same political party.  The Governor shall 
designate one board member to serve as chair.  The Governor may remove any member 
of the board for cause. 
3.  Qualifications.  The members of the board must be residents of this State and 
must be selected on the basis of their knowledge of and experience in taxation.  A 
member of the board may not hold any elective office or any public office involving 
assessment of taxes or administration of any of the tax laws of this State.  At least one 
member must be an attorney.  No more than 2 members may be attorneys. 
4.  Terms.  Members of the board are appointed for terms of 3 years.  A member may 
not serve more than 2 consecutive terms, plus any initial term of less than 3 years.  A 
vacancy must be filled by the Governor for the unexpired term subject to review by the 
joint standing committee of the Legislature having jurisdiction over taxation matters and 
confirmation by the Legislature during the next legislative session. 
5.  Quorum.  Two members of the board constitute a quorum.  A vacancy in the 
board does not impair the power of the remaining members to exercise all the powers of 
the board. 
6.  Compensation.  A member of the board is entitled to a per diem of $100.  Board 
members receive reimbursement for their actual, necessary cash expenses while on 
official business of the board. 
7.  Powers and duties.  The board has all powers as are necessary to carry out its 
functions.  The board may be represented by legal counsel.  The board may delegate any 
duties as necessary. 
8.  Appeals office.  The board shall establish and maintain an office, referred to in 
this section as "the appeals office," in the City of Augusta to assist the board in carrying 
out the purposes of this section.  The board may meet and conduct business at any place 
within the State. 
9.  Chief Appeals Officer; appeals office.  The Commissioner of Administrative and 
Financial Services shall appoint the Chief Appeals Officer to assist the board and manage 
the appeals office.  The Chief Appeals Officer must be a citizen of the United States and 
have substantial knowledge of tax law.  The salary of the Chief Appeals Officer is within 
salary range 47.  The Chief Appeals Officer shall: 
A.  Subject to policies and procedures established by the board, manage the work of 
the appeals office and hire personnel, including subordinate appeals officers and 
other professional, technical and support personnel; 
B.  Assist the board in the development and implementation of rules, policies and 
procedures to carry out the provisions of this section and section 151 and comply 
with all applicable laws; 
C.  Prepare a proposed biennial budget for the board, including supplemental budget 
requests as necessary, for submission to and approval by the Commissioner of 
Administrative and Financial Services; 
D.  Attend all board meetings and maintain proper records of all transactions of the 
board; and 
E.  Perform other duties as the board and the Commissioner of Administrative and 
Financial Services may assign. 
10.  Appeals procedures.  Appeals of tax matters arising under this chapter are 
conducted in accordance with this subsection. 
A.  If requested by a petitioner in a statement of appeal, the appeals office shall hold 
an appeals conference to receive additional information and to hear arguments 
regarding the protested assessment or determination.  The board shall set a rate of no 
more than $150 as a processing fee for each petition that proceeds to an appeals 
conference.  These fees must be credited to a special revenue account to be used to 
defray expenses in carrying out this section.  Any balance of these fees in the special 
revenue account does not lapse but is carried forward as a continuing account to be 
expended for the same purposes in the following years. 
B.  The appeals office shall provide a petitioner with at least 10 working days' notice 
of the date, time and place of an appeals conference.  The appeals conference may be 
held with fewer than 10 working days' notice if a mutually convenient date, time and 
place can be arranged. 
C.  An appeals officer shall preside over an appeals conference. The appeals officer 
has the authority to administer oaths, take testimony, hold hearings, summon 
witnesses and subpoena records, files and documents the appeals officer considers 
necessary for carrying out the responsibilities of the board. 
D.  If a petitioner does not include a request for an appeals conference in the 
statement of appeal, the appeals officer shall determine the matter based on written 
submissions by the petitioner and the division within the bureau making the original 
determination. 
E.  Both a petitioner and the assessor may submit to the appeals officer, whether or 
not an appeals conference has been requested, written testimony in the form of an 
affidavit, documentary evidence and written legal argument and written factual 
argument.  In addition, if an appeals conference is held, both the petitioner and the 
assessor may present oral testimony and oral legal argument.  The appeals officer 
need not observe the rules of evidence observed by courts, but shall observe the rules 
of privilege recognized by law.  If the appeals officer considers it appropriate, the 
appeals officer may encourage the petitioner and the assessor to resolve disputed 
issues through settlement or stipulation.  The appeals officer may limit the issues to 
be heard or vary any procedure adopted for the conduct of the appeals conference if 
the parties agree to that limitation. 
F.  Except when otherwise provided by law, a petitioner has the burden of proving, 
by a preponderance of the evidence, that the assessor has erred in applying or 
interpreting the relevant law. 
G.  The appeals officer shall exercise independent judgment.  The appeals officer 
may not have any ex parte communications with any party, including the petitioner, 
the assessor or any other employee of the Department of Administrative and 
Financial Services except those employees in the appeals office; however, the appeals 
officer may have ex parte communication limited to questions that involve ministerial 
or administrative matters that do not address the substance of the issues or position 
taken by the petitioner or the assessor. 
H.  The appeals officer shall prepare a recommended final decision on the appeal for 
consideration by the board based upon the evidence and argument presented to the 
appeals officer by parties to the proceeding.  The decision must be in written form 
and must state findings of fact and conclusions of law.  The appeals officer shall 
deliver copies of the recommended final decision to the board. 
I.  The board shall consider the recommended final decision on a timely basis.  After 
considering the recommended final decision, the board may: 
(1)  Adopt the recommended final decision as delivered by the appeals officer; 
(2)  Modify the recommended final decision; 
(3)  Send the recommended final decision back to the same appeals officer, if 
possible, for the taking of further evidence, for additional consideration of issues, 
for reconsideration of the application of law or rules or for such other 
proceedings or considerations as the board may specify; or 
(4)  Reject the recommended final decision in whole or in part and decide the 
appeal itself on the basis of the existing record. 
A decision adopted under this paragraph is the final administrative decision on the 
appeal and is subject to review by the Superior Court in accordance with the Maine 
Administrative Procedure Act. 
Subject to any applicable requirements of the Maine Administrative Procedure Act, the 
board shall adopt rules to accomplish the purposes of this section.  Those rules may 
define terms, prescribe forms and make suitable order of procedure to ensure the speedy, 
efficient, just and inexpensive disposition of all proceedings under this section.  Rules 
adopted pursuant to this subsection are routine technical rules pursuant to Title 5, chapter 
375, subchapter 2-A. 
Beginning in 2014 and annually thereafter, the board shall prepare and submit a report by 
January 1st on the activities of the board to the Governor, the assessor and the joint 
standing committee of the Legislature having jurisdiction over taxation matters. 
Sec. 7.  36 MRSA §191, sub-§2, ¶C, as enacted by PL 1977, c. 668, §2, is 
amended to read: 
C.  The inspection by the Attorney General of information filed by any taxpayer who 
has requested review of any tax under this Title or against whom an action or 
proceeding for collection of tax has been instituted; or the production in court or to 
the board on behalf of the State Tax Assessor or any other party to an action or 
proceeding under this Title of so much and no more of the information as is pertinent 
to the action or proceeding; 
Sec. 8.  36 MRSA §191, sub-§2, ¶UU, as reallocated by RR 2011, c. 1, §52, is 
amended to read: 
UU.  The production in court on behalf of the assessor or any other party to an action 
or proceeding under this Title, or the production pursuant to a discovery request 
under the Maine Rules of Civil Procedure or a request under the freedom of access 
laws, of any reconsideration decision or other document setting forth or discussing 
the assessor's practice, interpretation of law or application of the law to particular 
facts advisory ruling issued on or after July 1, 2012, in redacted format so as not to 
reveal information from which the taxpayer may be identified, except that federal 
returns and federal return information provided to the State by the Internal Revenue 
Service may not be disclosed except as permitted by federal law.  A person 
requesting the production of any such document shall pay, at the time the request is 
made, all direct and indirect costs associated with the redacting of information from 
which the taxpayer or other interested party may be identified, plus an additional fee 
of $100 per request; and 
Sec. 9.  36 MRSA §191, sub-§2, ¶VV, as reallocated by RR 2011, c. 1, §53, is 
repealed. 
Sec. 10.  36 MRSA §191, sub-§2, ¶WW is enacted to read: 
WW.  The disclosure of information by the assessor to the board and the subsequent 
inspection and disclosure of that information by the board, except that such disclosure 
is limited to information that is pertinent to an appeal or other action or proceeding 
before the board. 
Sec. 11.  PL 2011, c. 439, §9 is repealed. 
Sec. 12.  PL 2011, c. 439, §11 is amended to read: 
Sec. 11.  Cost administration.  The Commissioner of Administrative and 
Financial Services, the State Tax Assessor and the Chief Appeals Officer Maine Board of 
Tax Appeals established pursuant to the Maine Revised Statutes, Title 36 5, section 151-
B 12004-B, subsection 2 10 shall manage the implementation of this Act to ensure that 
this Act is implemented within existing resources.  The following principles govern costs 
associated with this Act. 
1.  The Independent Appeals Office Maine Board of Tax Appeals, the Chief Appeals 
Officer appointed pursuant to Title 36, section 151-D, subsection 9 and the appeals office 
established in Title 36, section 151-B 151-D may have no greater cost than the appellate 
division of the Department of Administrative and Financial Services, Bureau of Revenue 
Services prior to enactment of this Act and all positions within the Independent Appeals 
Office must have equivalent salary ranges as the positions in the appellate division prior 
to enactment of this Act.  The Commissioner of Administrative and Financial Services 
shall take any steps necessary to ensure that the total costs associated with the 
Independent Appeals Office appeals office are no greater than the costs that would have 
been associated with the appellate division prior to enactment of this Act. 
2.  The funding associated with the current taxpayer advocate of the Department of 
Administrative and Financial Services, Bureau of Revenue Services must be used to fund 
the new taxpayer advocate hired by the Commissioner of Administrative and Financial 
Services and the new taxpayer advocate must have the same salary range as the current 
taxpayer advocate.  The commissioner shall take any steps necessary to ensure that the 
costs associated with the new taxpayer advocate do not exceed the costs associated with 
the current taxpayer advocate prior to enactment of this Act. 
3.  No additional positions within the Department of the Attorney General or the 
Department of Administrative and Financial Services, Bureau of Revenue Services may 
be created as a result of this Act. 
Sec. 13.  PL 2011, c. 439, §12 is amended to read: 
Sec. 12.  Effective date.  This Act takes effect July 1, 2012, except that the 
Commissioner of Administrative and Financial Services is authorized to hire the Chief 
Appeals Officer pursuant to the Maine Revised Statutes, Title 36, section 151-B and the 
taxpayer advocate pursuant to Title 36, section 151-C prior to July 1, 2012 as long as 
those appointments do not take effect until July 1, 2012. 
Sec. 14.  Creation of Maine Board of Tax Appeals; elimination of 
appellate division; transition provisions.  The following provisions govern the 
elimination of the appellate division within the Department of Administrative and 
Financial Services, Bureau of Revenue Services and the creation of and the transfer of 
appeals cases to the Department of Administrative and Financial Services, Maine Board 
of Tax Appeals, established in the Maine Revised Statutes, Title 5, section 12004-B, 
subsection 10. 
1.  The Maine Board of Tax Appeals is established on July 1, 2012. 
2.  The Commissioner of Administrative and Financial Services shall appoint the 
Chief Appeals Officer under the Maine Revised Statutes, Title 36, section 151-D no later 
than November 1, 2012.  The commissioner shall set the number of appeals officers and 
any other employees and rate of compensation in accordance with Public Law 2011, 
chapter 439, section 11 and direct the Chief Appeals Officer to fill those positions no 
latter than January 1, 2013. 
3.  The appellate division is eliminated on January 1, 2013, and all open cases of the 
appellate division must be transferred to the Maine Board of Tax Appeals.  The Maine 
Board of Tax Appeals, the Bureau of Revenue Services and the Commissioner of 
Administrative and Financial Services shall develop a process to provide for the transition 
of cases in process by the appellate division on the date of its elimination. 
4.  All Other funds and Personal Services funds from the elimination of positions in 
the appellate division must be transferred to the Maine Board of Tax Appeals to carry out 
the provisions of this Act. 
5.  To the extent not inconsistent with the provisions of the Maine Revised Statutes, 
Title 36, section 151-D, all existing rules, regulations and procedures in effect, in 
operation or adopted in or by the appellate division are hereby declared in effect and 
continue in effect until rescinded, revised or amended by the Maine Board of Tax 
Appeals. 
6.  To the extent not inconsistent with the provisions of the Maine Revised Statutes, 
Title 36, section 151-D, all existing contracts, agreements and compacts currently in 
effect in the appellate division continue in effect. 
7.  All records, property and equipment previously belonging to or allocated for the 
use of the appellate division become the property of the Maine Board of Tax Appeals. 
8.  All existing forms, licenses, letterheads and similar items bearing the name of or 
referring to the appellate division may be used by the Maine Board of Tax Appeals until 
existing supplies of those items are exhausted. 
Sec. 15.  Staggered terms of members of the Maine Board of Tax Appeals.  
Notwithstanding the Maine Revised Statutes, Title 36, section 151-D, subsection 4, the 
terms of the members of the Maine Board of Tax Appeals, established in Title 36, section 
151-D, are staggered. Of the initial appointees to the board, the Governor shall designate 
one to be appointed for one year, one for 2 years and one for 3 years. 
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
This bill makes the following changes to the laws governing appeals of decisions of 
the State Tax Assessor. 
It provides the means for a taxpayer to consider that a petition for reconsideration has 
been denied if a decision has not been issued by the Department of Administrative and 
Financial Services, Bureau of Revenue Services within 90 days of the receipt of the 
petition. 
It provides for a reconsidered decision on a small claim request at the bureau level, 
which may be appealed directly to the Superior Court, and defines a small claim request.  
It provides that all other reconsidered decisions may be appealed de novo to either the 
Superior Court or the Maine Board of Tax Appeals.   
It eliminates the Independent Appeals Office, as created in Public Law 2011, chapter 
439, and instead creates the Maine Board of Tax Appeals, an independent, 3-member 
board appointed by the Governor.  The members of the board serve 3-year terms.  It 
provides for per diem compensation to the board members and outlines the powers and 
duties of the board, including adopting rules necessary to oversee formal appeals of 
decisions of the State Tax Assessor.  It creates a special revenue account for appeals fees 
to be used for operating expenses of the board. 
It amends the provision in current law allowing for a redacted copy of certain 
documents to be made public to comply with federal confidentiality statutes and to clarify 
that the dissemination of those documents is on a prospective basis only. 
It eliminates the restriction on the disclosure of information by the State Tax Assessor 
to the taxpayer advocate, since this bill also maintains the taxpayer advocate as an 
employee of the Bureau of Revenue Services. 
It allows the State Tax Assessor to disclose information to the Maine Board of Tax 
Appeals and allows the board to disclose that information, but limits the disclosure to 
information that is pertinent to an appeal or other action or proceeding before the board. 
It provides for the transfer of funds from the Bureau of Revenue Services to the 
Maine Board of Tax Appeals, the elimination of positions within the bureau, the creation 
of new positions in the appeals office of the Maine Board of Tax Appeals and the 
transition of cases from the bureau to the board.