An Act To Avoid Potential Loss of Revenue by Municipalities and the Unorganized Territory from Donated Property
Maine Legislature, Session 126, LD 1478
Committee: Taxation
Sponsors: JOHNSON, TUTTLE, BENNETT, CAMPBELL, GIFFORD, LOCKMAN, LONG, LONGSTAFF, PEASE, BURNS
Amends: 36 MRSA §651

Legislative Document 
No. 1478 
H.P. 1059 
House of Representatives, April 30, 2013 
An Act To Avoid Potential Loss of Revenue by Municipalities and 
the Unorganized Territory from Donated Property 
(AFTER DEADLINE) 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
205. 
Reference to the Committee on Taxation suggested and ordered printed. 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative JOHNSON of Eddington. 
Cosponsored by Senator TUTTLE of York and 
Representatives: BENNETT of Kennebunk, CAMPBELL of Orrington, GIFFORD of Lincoln, 
LOCKMAN of Amherst, LONG of Sherman, LONGSTAFF of Waterville, PEASE of Morrill, 
Senator: BURNS of Washington. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §651, as amended by PL 1981, c. 492, Pt. D, §6 and c. 595, §4, 
is further amended to read: 
§651.  Public property 
The following public property is exempt from taxation: 
1.  Public property.  The following public property is exempt from taxation: 
A.  The property of the United States so far as the taxation of such property is 
prohibited under the Constitution and laws of the United States.  
B.  The property of the State of Maine.  
B-1.  Real estate owned by the Water Resources Board of the State of New 
Hampshire and used for the preservation of recreational facilities in this State. 
C.  All property which that by the Articles of Separation is exempt from taxation.  
D.  The property of any public municipal corporation of this State appropriated to 
public uses, if located within the corporate limits and confines of such public 
municipal corporation.  
E.  The pipes, fixtures, hydrants, conduits, gatehouses, pumping stations, reservoirs 
and dams, used only for reservoir purposes, of public municipal corporations engaged 
in supplying water, power or light, if located outside of the limits of such public 
municipal corporation.  
F.  All airports and landing fields and the structures erected thereon or contained 
therein of public municipal corporations whether located within or without the limits 
of such public municipal corporations. Any structures or land contained within such 
airport not used for airport or aeronautical purposes shall is not be entitled to this 
exemption. Any public municipal corporation which that is required to pay taxes to 
another such corporation under this paragraph with respect to any airport or landing 
field shall must be reimbursed by the county wherein the airport is situated.  
G.  The pipes, fixtures, conduits, buildings, pumping stations and other facilities of a 
public municipal corporation used for sewage disposal, if located outside the limits of 
such public municipal corporation. 
Property donated to a public entity on or after October 1, 2013 is not exempt from 
taxation under this section unless the donation is approved by the legislative body of the 
municipality where the property is located or, in the case of property located in the 
unorganized territory, by the county commissioners of the county where the property is 
located or the donor establishes an account to make payments in lieu of property taxes to 
the municipality where the property is located or, in the case of property located in the 
unorganized territory, to the Unorganized Territory Education and Services Fund under 
section 1605. 
SUMMARY 
This bill provides that the property tax exemption for publicly owned property does 
not apply to property donated to a public entity on or after October 1, 2013 unless the 
donation is approved by the legislative body of the municipality where the property is 
located or, in the case of property located in the unorganized territory, by the county 
commissioners of the county where the property is located or the donor establishes an 
account to make payments in lieu of taxes.