An Act To Amend the Reporting Requirements for the Business Equipment Tax Exemption
Maine Legislature, Session 126, LD 1627
Committee: Taxation
Sponsors: HASKELL
Amends: 36 MRSA §693, 36 MRSA §694

Legislative Document 
No. 1627 
S.P. 618 
In Senate, December 23, 2013 
An Act To Amend the Reporting Requirements for the Business 
Equipment Tax Exemption 
(EMERGENCY) 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Received by the Secretary of the Senate on December 23, 2013.  Referred to the Committee 
on Taxation pursuant to Joint Rule 308.2 and ordered printed. 
DAREK M. GRANT 
Secretary of the Senate 
Presented by Senator HASKELL of Cumberland. 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, changes made by the First Regular Session of the 126th Legislature to the 
business equipment tax exemption program will affect the reporting of information by 
taxpayers beginning April 1, 2014; and 
Whereas, some of the information that taxpayers claiming an exemption under the 
program are required to report is proprietary information that could subject the taxpayers 
to financial harm if released publicly; and 
Whereas, this legislation protects that proprietary information and needs to take 
effect as soon as possible to prevent harm to businesses; 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 §693, sub-§1, as amended by PL 2013, c. 368, Pt. O, §7 and 
affected by §12 and c. 385, §§2 and 3, is further amended to read: 
1.  Reporting.  On or before May 1st of each year, a taxpayer claiming an exemption 
under this section shall file a report with the assessor of the taxing jurisdiction in which 
the property would otherwise be subject to taxation on April 1st of that year.  The report 
must identify the property for which exemption is claimed that would otherwise be 
subject to taxation on April 1st of that year and must be made on a form prescribed by the 
State Tax Assessor or substitute form approved by the State Tax Assessor. When the 
valuation of all property assessed to the taxpayer exceeds 2% of the total taxable 
valuation of the municipality for the prior tax year, the report must also include sufficient 
information, including income and expense information as necessary, to allow the 
assessor to determine the just value of the property owned by the taxpayer that is 
claiming the exemption as well as the property exempted under this subchapter.  The 
State Tax Assessor shall furnish copies of the form to each municipality in the State and 
the form must be made available to taxpayers prior to April 1st annually. The assessor of 
the taxing jurisdiction may require the taxpayer to sign the form and make oath to its 
truth.  If the report is not filed by April 1st, the filing deadline is automatically extended 
to May 1st without the need for the taxpayer to request or the assessor to grant that 
extension.  Upon written request, the assessor may at any time grant further extensions of 
time to file the report.  If a taxpayer fails to file the report in a timely manner, including 
any extensions of time, the taxpayer may not obtain an exemption for that property under 
this subchapter for that tax year.  The assessor of the taxing jurisdiction may require in 
writing that a taxpayer answer in writing all reasonable inquiries as to the property for 
which exemption is requested.  A taxpayer has 30 days from receipt of such an inquiry to 
respond.  Upon written request, a taxpayer is entitled to a 30-day extension to respond to 
the inquiry and the assessor may at any time grant additional extensions upon written 
request. The answer to any such inquiry is not binding on the assessor.  Information 
provided by the taxpayer in response to the inquiries that is proprietary information is 
confidential and is exempt from the provisions of Title 1, chapter 13.  An assessor of the 
taxing jurisdiction may not allow the inspection of or otherwise release such proprietary 
information to anyone other than the State Tax Assessor, who shall treat such proprietary 
information as subject to section 191, subsection 1.  As used in this subsection, 
"proprietary information" means information that is a trade secret or production, 
commercial or financial information the disclosure of which would impair the 
competitive position of the person submitting the information and would make available 
information not otherwise publicly available. 
All notices and requests provided pursuant to this subsection must be made by personal 
delivery or certified mail and must conspicuously state the consequences of the taxpayer's 
failure to respond to the notice or request in a timely manner. 
If an exemption has already been accepted and the State Tax Assessor subsequently 
determines that the property is not entitled to exemption, a supplemental assessment must 
be made within 3 years of the original assessment date with respect to the property in 
compliance with section 713, without regard to the limitations contained in that section 
regarding the justification necessary for a supplemental assessment. 
If the taxpayer fails to provide sufficient information as may be required under this 
subsection, the taxpayer may not obtain an exemption under this subchapter for that tax 
year. 
Sec. 2.  36 MRSA §693, sub-§4, as enacted by PL 2013, c. 368, Pt. O, §8 and 
affected by §12 and c. 385, §§2 and 3, is repealed. 
Sec. 3.  36 MRSA §694, sub-§1, as amended by PL 2013, c. 368, Pt. O, §9 and 
affected by §12 and c. 385, §§2 and 3, is further amended to read: 
1.  Examination and identification.  The assessor shall examine each report 
pursuant to section 693 that is timely filed, determine whether the property identified in 
the report is entitled to an exemption under this subchapter and determine the just value 
of the property.  The assessor also shall certify to the State Tax Assessor that the taxpayer 
has provided sufficient information necessary for the proper valuation of the property and 
that the assessor has considered that information in the valuation and exemption 
determinations.  Failure to provide this certification to the State Tax Assessor disqualifies 
the municipality from reimbursement pursuant to subsection 2, paragraphs B and C. 
Sec. 4.  Application.  This Act applies to property tax years beginning on or after 
April 1, 2014. 
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
This bill amends the reporting requirements for the business equipment tax 
exemption program in the following ways: 
1.  It eliminates the requirement that a taxpayer seeking an exemption on property 
exceeding 2% of the total taxable valuation of the municipality provide annually to the 
municipality income and expense information that is sufficient for the municipal assessor 
to determine the value of all property owned by the taxpayer located in the municipality 
as well as the property for which exemption is sought; 
2.  Current law specifies that a taxpayer applying for an exemption that fails to 
provide sufficient information to the assessor is ineligible for the exemption.  This bill 
eliminates that restriction; 
3.  It repeals a provision of law regarding confidential information and enacts a new 
provision to specify that proprietary information, such as trade secrets or otherwise not 
publicly available information, that is part of a taxpayer's application for the exemption is 
confidential information, exempt from the Freedom of Access Act; 
4.  It eliminates the requirement that the municipal assessor certify to the State Tax 
Assessor that the municipal assessor has received the taxpayer's income and expense 
information and has considered that information in the valuation and exemption 
determination; and 
5.  It specifies that the changes apply to property tax years beginning on or after April 
1, 2014.