An Act To Make Telecommunications Personal Property Tax Law Equitable
Maine Legislature, Session 125, LD 0441
Committee Amendment CA_A_H477 (House)
Amends: 36 MRSA §457, 36 MRSA §458

COMMITTEE AMENDMENT -A "to H.P. 334, L.D. 441, Bill, "An Act To Make 
Telecommunications Personal Property Tax Law Equitable" 
Amend the bill by striking out the title and substituting the following: 
'An Act To Reform Telecommunications Taxation' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 36 MRSA §457, as amended by PL 2009, c. 213, Pt. P, § 1 and affected by 
§3, is further amended to read: 
§457. State telecommunications excise tax 
1. Definitions. As used in this section subchapter, unless the context otherwise 
indicates, the following terms have the following meanings. 
A. 
"Telecommunications business" means a person engaged in the activity of 
providing interactive 2-way communication services for compensation. 
B. 
"Telecommunications personal property Qualified telecommunications 
equipment" means personal property equipment used for the transmission of any 
interactive 2-way communications, including voice, image, data and information, via 
a medium such as wires, cables, microwaves, radio waves, light waves or any 
combination of those or similar media. "Telecommunications personal property 
Qualified telecommunications equipment" includes qualifying property equipment 
used to provide telegraph service. "Telecommunications personal property Qualified 
telecommunications equipment" does not include property equipment used solely to 
provide value-added nonvoice services in which computer processing applications are 
used to act on the form, content, code and protocol of the infonnation to be 
transmitted, unless those services are provided under a tariff approved by the Public 
Utilities 
Commission. 
"Telecommunications 
personal 
property 
Qualified 
telecommunications equipment" does not include single or multiline standard 
telephone instruments. Notwithstanding section 551, "telecommunications personal 
COMMITTEE AMENDMENT 
<,.~. 
(J'} 
~.-
'. 
COMMITTEE AMENDMENT" A" to H.P. 334, LD. 441 
property qualified telecommunications equipment" includes any interest of a 
telecommunications business in poles. 
e. 
"Distribution facilities" 
means 
facilities 
used primarily to 
transport 
communications between fixed locations, including but not limited to cables, wires, 
wireless transmitters and utility poles. 
2. Tax imposed. A state tal( is imposed on telecommunications personal property at 
the rate provided in this subsection times the just value of the property. Just value and 
ovmership of the property must be determined as of the April 1 st preceding the 
assessment. The rate of tax is: 
l\. For assessments made in 2004, 26 mills; 
B. For assessments made in 2005, 25 mills; 
C. For assessments made in 2006, 24 mills; 
D. For assessments made in 2007,23 mills; 
E. For assessments made in 2008, 22 mills; 
F. For assessments made in 2009, 22 mills; 
G. For assessments made in 2010, 22 mills; 
H. For assessments made in 2011, 22 mills; 
L For assessments made in 2012, 19 mills; and 
J. For assessments made in 2013 and subsequent years, 18 mills. 
2-A. Excise tax levied. An excise tax is levied on a telecommunications business at 
the rate .provided in this subsection times the just value of the qualified 
telecommunications equipment for the privilege of operating within the State as follows: 
A. Just value of the qualified telecommunications equipment must be determined 
pursuant to section 70 I-A as of the April 1 st preceding the assessment; and 
B. The rate of tax is 19 mills for assessments made in 2012. For assessments made 
in 2013 and subsequent years, the State Tax Assessor shall apply the tax rate of the 
municipality or unorganized territory in which the qualified telecommunications 
equipment is located to the just value of the equipment as adjusted by the 
municipality's or unorganized territory's certified assessment ratio. 
3-A. Returns to State Tax Assessor prior to July 1, 2012. Ea€h Prior to July 1, 
2012, each telecommunications business owning or leasing telecommunications personal 
property qualified telecommunications equipment that on the first day of April in any 
year is situated, whether permanently or temporarily, within this State shall, on or before 
the 20th day of April in that year, return to the State Tax Assessor a complete list of such 
property equipment on a form to be furnished by the State Tax Assessor. 
3-B. Returns to State Tax Assessor beginning July 1, 2012. Beginning July 1, 
2012, each telecommunications business owning or leasing qualified telecommunications 
equipment on April!' 2012 and annually thereafter shall, on or before December 31, 
2012 and annually thereafter, return to the State Tax Assessor a complete list of such 
COMMITTEE AMENDMENT 
,~ 
(-0,::::'" 
"«,,,.." ? 
COMMITTEE AMENDMENT "A "to H.P. 334, L.D. 441 
equipment and each municipality or unorganized territory where any such equipment is 
situated on the first day of April on a fonn to be furnished by the State Tax Assessor. 
4. Assessment. The State Tax Assessor shall assess a tax on telecommunications 
personal property qualified telecommunications equipment owned or leased by a 
telecommunications business. 
Telecommunications personal property Qualified 
telecommunications equipment owned or leased by a person that is not a 
telecommunications business must be assessed a tax by the municipal assessor in the 
municipality in which the property equipment is located on April 1st of the taxable year. 
The 
date 
of assessment 
of telecommunications 
personal 
property 
qualified 
telecommunications equipment by municipalities must be consistent with etheF property 
subject to property taxation by the municipalities. 
5-B. Procedure. The excise tax on telecommunications personal property qualified 
telecommunications equipment of a telecommunications business must be assessed and 
paid in accordance with this subsection. 
A. 
+he Prior to July 2012, the State Tax Assessor shall make the assessment by 
May 30th of each year. After July 1, 2012, the State Tax Assessor shall make the 
assessment by March 30,2013 and by March 30th annually thereafter. 
C. 
The tax assessment must be paid no later than the August 15th following the date 
of assessment. 
7. Collection. Taxes assessed under this section by the State Tax Assessor must be 
enforced as generally provided by this Title. 
Taxes assessed under this section by 
municipal assessors must be enforced in the same way as ~ 
locally assessed personal 
property taxes. 
9. Appeal. A taxpayer receiving an assessment under this section may appeal a 
decision of the State Tax Assessor in the manner set forth in section 151. 
Sec. 2. 36 MRSA §458, as enacted by PL 1987, c. 507, §l, is amended to read: 
§458. Continuation of exemption 
Telecommunications personal property Qualified telecommunications equipment 
subject to taxation under this chapter shall continue must be assessed through application 
of a state excise tax in lieu of a state property tax and continues to be exempt from 
ordinary local property taxation as fonnerly provided under section 2696. It is the intent 
of the Legislature that this section not be considered a new property tax exemption 
requiring state reimbursement under the Constitution of Maine, Article IV, Part Third, 
Section 23. 
Sec. 3. Rules. The Department of Administrative and Financial Services, Bureau 
of Revenue Services shall adopt routine technical rules pursuant to the Maine Revised 
Statutes, Title 5, chapter 375, subchapter 2-A to implement the provisions of this Act. In 
developing rules, the bureau must include provisions for reporting the location of the 
qualified telecommunications equipment, which include a method for allowing a 
telecommunications business to apportion the values of distribution facilities among 
municipalities. 
The 
bureau 
shall 
establish 
a 
method 
of valuing 
qualified 
telecommunications equipment and procedures for the declaration of value of the 
COMMITTEE AMENDMENT 
.. C," 1 
r-,'~ v 
A 
\)' 
'«_0 
, 
COMMITTEE AMENDMENT"~ "to H.P. 334, L.D. 441 
qualified telecommunications equipment established in Title 36, Part 2 consistent with 
methods in place on January 1, 2011. In establishing a method of valuing qualified 
telecommunications equipment, the bureau may develop average age and depreciation 
formulas for classes of equipment 
Sec. 4. Maine Revised Statutes headnote amended; revision clause. In the 
Maine Revised Statutes, Title 36, chapter 103, subchapter 2, in the subchapter headnote, 
the words "assessment of state property taxes" are amended to read "assessment of state 
property and excise taxes" and the Revisor of Statutes shall implement this revision when 
updating, publishing or republishing the statutes.' 
SUMMARY 
The amendment replaces the bill and changes the title of the bill. The amendment 
replaces the telecommunications personal property tax with an excise tax on 
telecommunications businesses for the privilege of operating in the State. The excise tax 
is equal to the just value of qualified telecommunications equipment taxed at a rate of 19 
mills in fiscal year 2012. 
For fiscal year 2013 and subsequent years, the State Tax 
Assessor will apply the tax rate of the municipality or the unorganized territory in which 
the qualified telecommunications equipment is located to the just value of the equipment 
as adjusted by the municipality's or the unorganized territory'S certified assessment ratio. 
The amendment establishes procedures for the assessment, collection and appeal of the 
excise tax. It provides for routine technical rules to implement this legislation. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05119111 hac:: 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
LD441 
LR 557(02) 
An Act To Make Telecommunications Personal Property Tax Law Equitable 
Fiscal Note for Bill as Amended by Committee Amendment "~,, 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2011-12 
FY 2012-13 
$0 
$152,518 
$0 
($152,518) 
Projections 
FY 2013-14 
$305,036 
($305,036) 
Fiscal Detail and Notes 
Projections 
FY 2014-15 
$305,036 
($305,036) 
Repealing the existing telecommunications tax and establishing an excise tax on telecommunications at 19 mills in 
fiscal year 2011-12 with provision for later mill adjustments starting in fiscal year 2012-13 by the State Tax Assessor 
will reduce General Fund revenue starting in fiscal year 2012-13. Any rulemaking and other administrative costs can 
be absorbed by Maine Revenue Services within existing budgeted resources. 
LR0557(02) - Fiscal Note - Page 1 of 1