An Act To Qualify the Port of Eastport as Tax Exempt for Purpose of Bonding
Maine Legislature, Session 125, LD 0557
Committee: Taxation
Sponsors: BURNS, RAYE, FITTS, HOGAN, KNAPP, LAJOIE, MAKER, PRESCOTT, TILTON

Legislative Document 
No. 557 
H.P. 440 
House of Representatives, February 15, 2011 
An Act To Qualify the Port of Eastport as Tax Exempt for Purpose 
of Bonding 
(EMERGENCY) 
Reference to the Committee on Taxation suggested and ordered printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative BURNS of Whiting. 
Cosponsored by President RAYE of Washington and 
Representatives: FITTS of Pittsfield, HOGAN of Old Orchard Beach, KNAPP of Gorham, 
LAJOIE of Lewiston, MAKER of Calais, PRESCOTT of Topsham, TILTON of Harrington. 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, Private and Special Law 1977, chapter 14 established the Eastport Port 
Authority to provide vitally needed economic stimulus to the City of Eastport; and 
Whereas, Private and Special Law 1979, chapter 8 increased the bonding authority 
of the Eastport Port Authority to $6,000,000; and 
Whereas, the federal Internal Revenue Service has determined that Eastport Port 
Authority as currently constituted does not qualify as a "political subdivision" under the 
Internal Revenue Code for purposes of issuing tax-exempt bonds; and 
Whereas, the ability to exercise its current bonding authority on a tax-exempt basis 
will assist the Eastport Port Authority to improve and expand its facilities and contribute 
to job creation and economic development in Washington County; 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.  P&SL 1977, c. 14, last ¶, as amended by P&SL 1993, c. 82, §1, is further 
amended to read: 
The directors are the administrative officers of the authority and may employ 
assistants as they may consider necessary to carry out this Act.  They shall make plans to 
obtain title to the wharf or wharves, or locations for the wharf or wharves, and they have 
the authority to acquire, construct, operate, maintain, repair and replace piers, terminals, 
industrial parks and transportation and warehouse facilities, roads, railways and other 
facilities on the land and in the waters within the limits of the City of Eastport, as will in 
their judgment improve and increase the harbor, docking and warehousing facilities in the 
City of Eastport and enter into contracts for administration, operations, management and 
consulting services within and beyond the boundaries of the City of Eastport.  With the 
consent of the Eastport city council, or a vote of a majority of the Eastport city council, 
the The authority may take or acquire within the limits of the City of Eastport, real 
property by purchase or otherwise, by gift or grant, or by the exercise of the right of 
eminent domain, which right is expressly delegated to the Eastport Port Authority, and 
hold the real property and rights and easements to the real property as the directors may 
from time to time consider necessary for the purpose of constructing and maintaining the 
Eastport Port Authority piers, docks and warehouses, highways and other port facilities, 
and have has the right to construct suitable buildings, filling stations, and restaurants or 
engage in other business opportunities that are not in direct competition with established 
businesses, and have has the authority to lease the same, upon the terms as the directors 
or a majority of the directors may determine to be in the best interests of the authority, the 
proceeds from leases to accrue to the credit of the Eastport Port Authority.  These 
wharves, buildings and property are exempt from taxation by the City of Eastport, except 
that this exemption does not exempt any lessee or person in possession, other than the 
port authority, from taxes or assessments payable under the Maine Revised Statutes, Title 
36, section 551.  The Port Authority has the right to acquire property without the approval 
of the city council, except that the property so acquired may not be exempted from 
taxation.  The authority shall render annually, at the end of the fiscal year, an annual 
report to the city council, showing financial reports, together with recommendations and 
plans for the improvement and operation of facilities.  The board of directors has the 
power to establish bylaws and all rules and regulations governing the operation and 
maintenance of facilities under the control of the Eastport Port Authority; charge such 
fees as may, in their judgment, be necessary for parking, docking and storage privileges; 
contract for the construction of the wharf or wharves, or warehouse or warehouses, and 
borrow money for these purposes; arrange for its financing; and provide for its protection 
by insurance against damage by fire, water or wind and for any other casualty which that 
the directors wish to insure against, and for liability against injury to persons and 
property.  The directors may accept federal, state and private grants and contributions for 
the purposes of this Act and may enter into partnerships, joint ventures or other business 
relationships, either directly or through an affiliate corporation owned by the authority. 
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
This bill removes the requirement that the Eastport Port Authority seek and obtain the 
consent of the Eastport city council to acquire real property in the City of Eastport.  The 
intent of this change is to allow the Eastport Port Authority to qualify as a "political 
subdivision" under the federal Internal Revenue Code for purposes of issuing bonds that 
are exempt from federal income taxation.