An Act To Create the Maine Board of Tax Appeals
Maine Legislature, Session 125, LD 1750
Committee Amendment CA_B_H861 (House)
Amends: 36 MRSA §143, 36 MRSA §151, 36 MRSA §151-B

COMMITTEE AMENDMENT" 5" to H.P. 1291, L.D. 1750, Bill, "An Act To 
Create the Maine Board of Tax Appeals" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Restore the Maine Tax Appeals Process' 
Amend the bill by striking out everything after the title and before the summary and 
inserting the following: 
'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 restores the state 
tax appeals process that was in place prior to enactment of Public Law 2011, chapter 439; 
and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRSA §143, first" as amended by PL 2011, c. 439, §1 and affected 
by § 12, is further amended to read: 
The State Tax Assessor may compromise a tax liability arising under this Title upon 
the grounds of doubt as to liability or doubt as to collectibility, or both. Upon acceptance 
by the assessor of an offer in compromise, the liability of the taxpayer in question is 
conclusively settled and neither the taxpayer nor the assessor may reopen the case except 
by reason of falsification or concealment of assets by the taxpayer, fraud or mutual 
mistake of a material fact or if, in the opinion of the assessor, justice requires. The 
COMMITTEE AMENDMENT 
~." 
COMMITTEE AMENDMENT~" to H.P. 1291, L.D. 1750 
decision of the assessor to reject an offer in compromise is not subject to review under 
section 151. The assessor's authority to compromise a tax liability pursuant to this 
section is separate from and in addition to the assessor's authority to cancel or abate a tax 
liability pursuant to section 142. 
Sec. 2. 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 J, §5 and repealed and 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 
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 by 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 who receives notice of an assessment does not request reconsideration of the 
assessment in writing within 60 days, the assessor may not reconsider the assessment 
pursuant to this section and no review is available in Superior Court regardless of whether 
the person subsequently makes payment and requests a refund. 
If a request for reconsideration is filed within the specified time period, the assessor 
shall reconsider the assessment or the detennination. If the petitioner has so requested in 
the petition, the assessor shall hold an informal conference with the petitioner to receive 
additional infonnation and to hear arguments regarding the protested assessment or 
detennination. The assessor shall give the petitioner 10 working days' notice of the time 
and place of the conference. The conference may be held with less than 10 working days' 
notice if a mutually convenient time and place can be arranged. The reconsideration, with 
or without an informal conference, is not an "adjudicatory proceeding" within the 
meaning of that term in the Maine Administrative Procedure Act. If the requested 
reconsideration involves a denial or deemed denial of a refund claim, a refund claim with 
respect to which a conference has been requested under section 5280 or an assessment 
that is paid in full or part and the assessor fails to mail to the taxpayer a decision on the 
reconsideration within 9 months after the reconsideration request was filed, the taxpayer 
may elect but is not obligated to deem the request for reconsideration denied. The 
taxpayer elects to deem the reconsideration denied by filing in Superior Court a petition 
for review of the deemed denial. The deemed denial constitutes final agency action and is 
subject to court review as otherwise provided in this section. The taxpayer may not make 
the deemed denial election after either the assessor's reconsideration decision has been 
received by the taxpayer or the expiration of 9 years following the filing of the 
reconsideration request, whichever occurs first. Notwithstanding any other provision of 
law, any claim for credit or refund of any tax imposed under this Title is deemed denied 
years after it was filed if the claim has not previously been allowed or denied as final 
agency action. A deemed denial constitutes final agency action. 
The assessor's decision on reconsideration must be mailed to the taxpayer or the 
taxpayer's designated representative by certified or registered mail and the decision must 
set forth briefly the assessor's findings of fact and the basis of decision in each case 
decided in whole or in part adversely to the taxpayer. The assessor's decision on 
reconsideration constitutes final agency action that is subject to review by the Superior 
Court in accordance with the Maine Administrative Procedure Act, except that Title 5, 
COMMITTEE AMENDMENT 
1'". ,. 
COMMITTEEAMENDMENT~"tOH.P.1291,L.D.1750 
sections 11006 and 11007 do not apply. The Superior Court shall conduct a de novo 
hearing and make a de novo determination of the merits of the case. Either the taxpayer 
or the assessor may raise on appeal in Superior Court any facts, arguments or issues that 
relate to the assessor's decision on reconsideration, regardless of whether the facts, 
arguments or issues were raised during the reconsideration proceeding being appealed, as 
long as the facts, arguments or issues are not barred by any other provision of law. The 
court shall make its own determination as to all questions of fact or law, regardless of 
whether the questions of fact or law were raised during the reconsideration proceeding. 
The Superior Court shall enter such orders and decrees as the case may require. The 
burden of proof is on the taxpayer. 
Sec. 3. 36 MRSA §151-B, as enacted by PL 2011, c. 439, §3 and affected by §12, 
is repealed. 
Sec. 4. PL 2011, c. 439, §9 is repealed. 
Sec. 5. PL 2011, c. 439, §11 is repealed and the following enacted in its place: 
Sec. 11. 
Cost administration. 
The Commissioner of Administrative and 
Financial Services 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 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. 
2. 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. 6. 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 
i\:ppeals Officer pl:lfsl:1aat te the MaiHe Revised 8tatl:1tes, Title 36, sectieH 151 B aad the 
taxpayer advocate pursuant to the Maine Revised Statutes, Title 36, section IS1-C prior 
to July 1, 2012 as long as these appointments do the appointment does not take effect 
until July 1,2012. 
Sec. 7. Appropriations and allocations. 
The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Departmentwide - DAFS 0013 
COMMITTEE AMENDMENT 
tt. vi I. 
COMMITTEE AMENDMENT::B" to H.P. 1291, L.D. 1750 
Initiative: Provides appropriations for the Personal Services and related All Other costs of 
one Staff Attorney -
Taxpayer Advocate position within the Department of 
Administrative and Financial Services. 
GENERAL FUND 
POSITIONS - LEGISLATIVE COUNT 
Personal Services 
All Other 
GENERAL FUND TOTAL 
Revenue Services, Bureau of 0002 
2011-12 
0.000 
$0 
$0 
$0 
2012-13 
1.000 
$89,189 
$13,378 
$102,567 
Initiative: Eliminates appropriations for the Personal Services and related All Other costs 
of one Staff Attorney - Taxpayer Advocate position within the Department of 
Administrative and Financial Services, Bureau of Revenue Services. 
GENERAL FUND 
POSITIONS - LEGISLATIVE COUNT 
Personal Services 
All Other 
GENERAL FUND TOTAL 
ADMINISTRATIVE AND FINANCIAL 
SERVICES, DEPARTMENT OF 
DEPARTMENT TOTALS 
GENERAL FUND 
DEPARTMENT TOTAL-ALL FUNDS 
2011-12 
0.000 
$0 
$0 
$0 
2011-12 
so 
$0 
2012-13 
(1.000) 
($89,189) 
($13,378) 
($102,567) 
2012-13 
so 
so 
Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect when approved.' 
SUMMARY 
This amendment, which is the minority report, restores the tax appeals process that 
was in place prior to enactment of Public Law 2011, chapter 439. It retains the provisions 
of Public Law 2011, chapter 439 pertaining to the taxpayer advocate. This amendment 
adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03/28/12 ,;tvac 
LD 1750 
LR2S49(03) 
An Act To Create the Maine Board of Tax Appeals 
Fiscal Note for Bill as Amended by Committee Amendment .£y{ +\-8<0 D 
Committee: Taxation 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Revenue 
General Fund 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2011-12 
FY 2012-13 
$0 
$15,000 
$0 
$0 
$0 
($15,000) 
Projections 
FY 2013-14 
$15,000 
$0 
($15,000) 
Projections 
FY 2014-15 
$15,000 
$0 
($15,000) 
The bill restores the appeals process to the process that was in place prior to the enactment of Public Law 2011, 
chapter 439. The bill provides an appropriation in FY 2012-13 of $102,567 to the Department of Administrative and 
Financial Services to fund the personnel and related costs of one staff attorney - taxpayer advocate position and 
de appropriates the same amount to Maine Revenue Services to remove funding for a staff attorney - taxpayer advocate 
position. The bill would result in a $15,000 annual reduction in revenue from filing fees beginning in FY 2012-13. 
LR2549(03) - Fiscal Note - Page 1 of 1