An Act To
Maine Legislature, Session 126, LD 1627
Committee Amendment CA_A_S462 (Senate)
Amends: 36 MRSA §693, 36 MRSA §694, 36 MRSA §706

COMMITTEE AMENDMENT "A " to S.P. 618, L.D. 1627, Bill, "An Act To 
Amend the Reporting Requirements for the Business Equipment Tax Exemption" 
1 
Amend the bill by striking out everything after the enacting clause and before the 
emergency clause and inserting the following: 
'Sec. 1. 36 MRSA §693, sub-§l, as amended by PL 2013, c. 368, Pt. 0, §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 1 st of that year. The report 
must identify the property for which exemption is claimed that would otherwise be 
subj ect to taxation on April 1 st 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. '¥heH the 
valuatioH of all property assessed to the taxpayer exceeds 2% of the total taxable 
valuatioH of the mUHicipality for the prior tax year, the report must also iHclude sufficieHt 
iHformatioH, iHcludiHg iHcome aHd expeHse iHformatioH as Heoessary, to allo';'l the 
assessor to determiHe the just value of the property oWHed by the taxpayer that is 
olaimiHg the exemptioH as well as the property exempted uHder this subohapter. 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 1 st 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 1 st, the filing deadline is automatically extended 
to May I st 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 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT"A"to S.P. 618, L.D. 1627 
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. 
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 infonnation 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. 0, §8 and 
affected by § 12 and c. 385, §§2 and 3, is repealed. 
Sec. 3. 36 MRSA §694, sub-§l, as amended by PL 2013, c. 368, Pt. 0, §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 detennine the just value 
of the property. The assessor also shall oertify to the State Tax Assessor that the taxpayer 
has provided suffioient information neoessary for the proper valuation of the property and 
that the assessor has oonsidered that information in the valuation and exemption 
detenninations. Failure to provide this certifioation to the State Tax Assessor disqualifies 
the munioipality from reimbursement pursuant to subseotion 2, paragraphs Band C. 
Sec. 4. 36 MRSA §694, sub-§2,~, as amended by PL 2013, c. 368, Pt. 0, §10 
and affected by § 12 and c. 385, §§2 and 3, is further amended to read: 
B. In the case of a municipality that chooses reimbursement under this paragraph in 
which the personal property factor exceeds 5%, the applicable percentage for exempt 
business equipment is 50% plus an amount equal to 112 of the personal property 
factor. 
For purposes of this paragraph, "personal property factor" means the 
percentage derived from a fraction, the numerator of which is the value of business 
personal property in the municipality, whether taxable or exempt, and the 
denominator of which is the value of all taxable property in the municipality plus the 
value of exempt business equipment. For purposes of this paragraph, the taxable 
value of exempt business equipment is the value that would have been assessed on 
that equipment if it were taxable. In order to obtain the reimbursement under this 
paragraph on or after April 1, 2014, the ffiUflieipality must provide to the State Tax 
Assessor a report providing an appraisal of the exempt business equipment of all 
taxpayers "'lhose equalized munioipal valuation makes up at least 2% of the overall 
equalized valuation of the municipality. The appraisal report must in dude a summary 
of the appraiser's oonsideration of the oost, inoome oapitalization and sales 
oomparison approaohes to the valuation of property. The appraisal must determine a 
value for the orooertv 'uithin the 5 'lears orior to the date of the claim and must be 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A"to S.P. 618, L.D. 1627 
prepared by a qualified professional appraiser, as defined in section 208 A. This 
appraisal must be the basis on \vhich the property is assessed for municipal property 
tax purposes. 
Sec. 5. 36 MRSA §706, as amended by PL 1981, c. 30, § § 1 and 2, is further 
amended to read: 
§706. Taxpayers to list property, notice, penalty, verification 
Before making an assessment, the assessor or assessors, the chief assessor of a 
primary assessing area or the State Tax Assessor in the case of the unorganized territory 
may give seasonable notice in writing to all persons liable to taxation or qualifying for 
exemption pursuant to subchapter 4-C in the municipality, primary assessing area or the 
unorganized territory to furnish to the assessor or assessors, chief assessor or State Tax 
Assessor true and perfect lists of all their estates, not by la'N exempt from taxation, of 
which they were possessed on the first day of April of the same year. 
The notice to owners may be by mail directed to the last known address of the 
taxpayer or by any other method that provides reasonable notice to the taxpayer. 
If notice is given by mail and the taxpayer does not furnish the list, fle the taxpayer is 
barred of his the right to make application to the assessor or assessors, chief assessor or 
State Tax Assessor or any appeal therefrom from an application for any abatement of his 
those taxes, unless fie the taxpayer furnishes the list with his the application and satisfies 
tftem the assessing authority or authority to whom an appeal is made that fie the taxpayer 
was unable to furnish it the list at the time appointed. 
The assessor or assessors, chief assessor or State Tax Assessor may require the 
person furnishing the list to make oath to its truth, which oath any of them may 
administer, and may require him to anSVler in writing all proper inquiries as to the nature, 
situation and value of his property liable to be ta](ed in the State; and a refusal or neglect 
to answer such inquiries and subscribe the same bars an appeal, but such list and answers 
shall not be conclusive upon the assessor or assessors, chief assessor or the State Tax 
Assessor. 
The assessor or assessors, chief assessor or State Tax Assessor may require the 
taxpayer to answer in writing all proper inquiries as to the nature, situation and value of 
the taxpayer's property liable to be taxed in the State or subject to exemption pursuant to 
subchapter 4-C. As may be reasonably necessary to ascertain the value of property 
according to the income approach to value pursuant to the requirements of section 208-A 
or generally accepted assessing practices, these inquiries may seek information about 
income and expenses, manufacturing or operational efficiencies, manufactured or 
generated sales price trends or other related information. 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. Information provided by the taxpayer in response to an 
inquiry that is proprietary information, and clearly labeled by the taxpayer as proprietary 
and confidential 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, 
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COMMITTEE AMENDMENT" A" to S.P. 618, L.D. 1627 
subsection 1, except that the exemption provided in section 191, subsection 2, paragraph I 
does not apply to such proprietary information. 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 and information protected from disclosure by federal or state 
law or regulations. A person who knowingly violates the confidentiality provisions of 
this paragraph commits a Class E crime. 
A taxpayer's refusal or neglect to answer inquiries bars an appeal, but the answers are 
not conclusive upon the assessor or assessors, chief assessor or State Tax Assessor. 
If the assessor or assessors, chief assessor or the State Tax Assessor fail to give notice 
by mail, the taxpayer is not barred of ffis the right to make application for abatement 
prO'lided tHat; however, upon demand the taxpayer shall answer in writing all proper 
inquiries as to the nature, situation and value of ffis the taxpayer's property liable to be 
taxed in the State; aHd a. A taxpayer's refusal or neglect to answer the inquiries and 
subscribe the same bars an appeal, but the list and answers shall are not be conclusive 
upon the assessor or assessors, chief assessor or the State Tax Assessor. 
Sec. 6. PL 2013, c. 368, Pt. 0, §11, as repealed and replaced by PL 2013, c. 385, 
§ 1 and affected by §3, is repealed. 
Sec. 7. Application. This Act applies to property tax years beginning on or after 
April 1,2014.' 
SUMMARY 
This amendment replaces the bill and removes changes to the business equipment tax 
exemption enacted by Public Law 2013, chapter 368, Part O. This amendment also 
specifies the information that an assessor or the State Tax Assessor may request pursuant 
to the Maine Revised Statutes, Title 36, section 706 regarding property subject to taxation 
and adds confidentiality provisions applicable to proprietary information provided 
pursuant to that section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03117114 frac 
LD 1627 
LR 2405(02) 
An Act To Amend the Reporting Requirements for the Business Equipment Tax Exemption 
Fiscal Note for Bill as Amended by Committee Amendment ''/4.' ( s - C1ll?~) 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Minor revenue increase - General Fund 
Correctional and Judicial Impact Statements 
Establishes new Class E crimes. 
The collection of additional fines may also increase General Fund revenue by minor amounts. 
LR2405(02) - Fiscal Note - Page 1 of 1