An Act To Adjust the Personal Property Tax Exemption for Farm Machinery
Maine Legislature, Session 129, LD 0241
Committee Amendment CA_A_H335 (House)
Amends: 36 MRSA §655

COMMITTEE AMENDMENT" ,4,, to H.P. 204, L.D. 241, Bill, "An Act To Adjust 
the Personal Property Tax Exemption for Farm Machinery" 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'Sec. 1. 36 MRSA §655, sub-§1, ,iM, as amended by PL 1977, c. 263, is further 
amended to read: 
M. All farm machinery used exclusively in production of hay and field crops to the 
aggregate actual market value, excluding motor vehicles, not exceeding $10,000, 
tl*cluclmg motor vehicles and on or after April 1, 2020 not exceeding $45,000. Meter 
vehicle shall l'H:ean As used in this paragraph, "motor vehicle" means any 
self-propelled vehiclet.,_ 
(1) On or before April 1st annually, a taxpayer claiming an exemption under this 
paragraph 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 an exemption is claimed and must be 
on a form prescribed by or approved by the bureau. The bureau shall provide 
copies of the form to each municipality in the State. and the form must be made 
available to taxpayers before April 1st annually. 
(2) The bureau may audit the records of a municipality to ensure compliance 
with this paragraph. The bureau may review the records of a municipality to 
determine if exemptions granted under this paragraph have been properly 
approved. If the bureau determines that an exemption under this paragraph has 
been improperly approved,· the bureau shall ensure, either by setoff against other 
payments due the municipality or otherwise, that the municipality is not 
reimbursed for the revenue lost as a result of the improperly approved exemption. 
A municipality that is aggrieved by a determination of the bureau under this 
paragraph may appeal pursuant to section 151. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" jq,, to H.P. 204, L.D. 241 
(3) 
Notwithstanding section 661, a municipality that experiences a loss in 
property tax revenue attributable to the increase in the exemption limitation over 
$10,000 on or after April 1, 2020 is entitled to reimbursement in the manner 
provided in section 661 for 100% of the additional property tax revenue loss; 
Sec. 2. Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Revenue Services, Bureau of 0002 
Initiative: Provides one-time funding to reimburse municipalities for costs associated with 
increasing the property tax exemption on farm machinery from $10,000 to $45,000. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2019-20 
$0 
$0 
2020-21 
$17,500 
$17,500 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment provides a time frame for implementation of the increase in the 
property tax exemption for farm machinery, provides administrative provisions for the 
Bureau of Revenue Services to enforce the exemption and verify required state 
reimbursement amounts and requires the State to reimburse municipalities for 100% of 
property taxes lost as a result of the increase in the exemption. 
This amendment also includes an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
\ 
COMMITTEE AMENDMENT 
Approved: 05/11/19 .::Wac. 
LD241 
LR 1682(02) 
An Act To Adjust the Personal Property Tax Exemption for Farm Machinery 
Fiscal Note for Bill as Amended by Committee Amendment ,fj, ( 11-J ~ 
Committee: Taxation 
Net Cost (Savings) 
General Fund 
Appropriations/ Allocations 
General Fund 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY2019-20 
FY 2020-21 
$0 
$17,500 
$0 
$17,500 
Projections 
FY2021-22 
$525,000 
$525,000 
Projections 
FY2022-23 
$525,000 
$525,000 
This bill increases the property tax exemption for farm machinery from $10,000 to $45,000 and provides for 100% 
reimbursement to municipalities of the property tax loss. The bill includes a one-time General Fund appropriation of 
$17,500 in fiscal year 2020-21 to the Department of Administrative and Financial Services to reimburse 
municipalities for costs associated with increasing this property tax exemption. The Department will require annual 
General Fund appropriations of $525 ,000 beginning in fiscal year 2021-22 to reimburse municipalities 100% of the 
property tax loss. 
LR1682(02) - Fiscal Note - Page 1 of 1