An Act To Repeal the Service Provider Tax on Private Nonmedical Institutions and To Offset That Revenue Loss
Maine Legislature, Session 127, LD 0502
Committee: Taxation
Sponsors: MAREAN, McCORMICK, GOODE, GRANT, MAKER, POULIOT, SANDERSON, SEAVEY, DIAMOND, LIBBY
Amends: 36 MRSA §2552, 36 MRSA §2559

Legislative Document 
No. 502 
H.P. 341 
House of Representatives, February 24, 2015 
An Act To Repeal the Service Provider Tax on Private Nonmedical 
Institutions and To Offset That Revenue Loss 
Reference to the Committee on Taxation suggested and ordered printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative MAREAN of Hollis. 
Cosponsored by Senator McCORMICK of Kennebec and 
Representatives: GOODE of Bangor, GRANT of Gardiner, MAKER of Calais, POULIOT of 
Augusta, SANDERSON of Chelsea, SEAVEY of Kennebunkport, Senators: DIAMOND of 
Cumberland, LIBBY of Androscoggin. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §2552, sub-§1, ¶G, as amended by PL 2013, c. 331, Pt. C, 
§14, is further amended to read: 
G.  Private nonmedical institution or personal Personal home care services; 
Sec. 2.  36 MRSA §2552, sub-§1, ¶L, as amended by PL 2013, c. 368, Pt. 
OOOO, §3, is further amended to read: 
L.  Ancillary services; and 
Sec. 3.  36 MRSA §2552, sub-§1, ¶M, as enacted by PL 2013, c. 368, Pt. OOOO, 
§4, is amended to read: 
M.  Group residential services for persons with brain injuries.; 
Sec. 4.  36 MRSA §2552, sub-§1, ¶¶N and O are enacted to read: 
N.  Motion picture entertainment at locations where the primary activity is the 
showing of motion pictures; and 
O.  Skiing, snowboarding and similar winter sports activities at locations where the 
primary activity is engagement in winter sports. 
Sec. 5.  36 MRSA §2559, as amended by PL 2011, c. 542, Pt. A, §141, is further 
amended to read: 
§2559.  Application of revenues 
Revenues derived by the tax imposed by this chapter must be credited to a General 
Fund suspense account.  On or before the last day of each month, the State Controller 
shall transfer a percentage of the revenues received by the State Tax Assessor during the 
preceding month pursuant to the tax imposed by section 2552, subsection 1, paragraphs A 
to F and L to the Local Government Fund as provided by Title 30-A, section 5681, 
subsection 5.  The balance remaining in the General Fund suspense account must be 
transferred to service provider tax General Fund revenue.  On or before the 15th day of 
each month, the State Controller shall transfer all revenues received by the assessor 
during the preceding month pursuant to the tax imposed by section 2552, subsection 1, 
paragraphs G to J and M to the Medical Care Services Other Special Revenue Funds 
account, the Other Special Revenue Funds Mental Health Services - Community 
Medicaid program, the Medicaid Services - Adult Developmental Services program and 
the Office of Substance Abuse - Medicaid Seed program within the Department of Health 
and Human Services.  On or before the 15th day of each month, the State Controller shall 
transfer all revenues received by the assessor during the preceding month pursuant to the 
tax imposed by section 2552, subsection 1, paragraphs N and O to the Medical Care 
Services Other Special Revenue Funds account. 
SUMMARY 
This bill repeals the service provider tax on private nonmedical institutions and 
expands the tax to cover motion picture entertainment and certain winter sports. The 
revenue from the newly covered services is dedicated to fund medical services eligible 
for matching federal Medicaid funding currently funded by revenue from the tax on 
private nonmedical institutions. The bill also corrects an oversight by identifying the 
application of revenue from the service provider tax on group residential services for 
persons with brain injuries.