An Act To Amend the Tax Laws of the State
Maine Legislature, Session 130, LD 1917
Committee: Taxation
Sponsors: TERRY
Amends: 36 MRSA §2519, 36 MRSA §2531, 36 MRSA §5255-B, 36 MRSA §5255-C, 36 MRSA §208, 36 MRSA §652, 36 MRSA §706-A, 36 MRSA §1483, 36 MRSA §6234, 36 MRSA §6251, 36 MRSA §501, 36 MRSA §578, 36 MRSA §581, 36 MRSA §713-B, 36 MRSA §1109, 36 MRSA §1112, 36 MRSA §1112-C, 36 MRSA §1113, 36 MRSA §1115, 36 MRSA §1121, 36 MRSA §1138, 23 MRSA §4210-B, 36 MRSA §1820

Legislative Document
No. 1917
H.P. 1423
House of Representatives, January 12, 2022
An Act To Amend the Tax Laws of the State
Submitted by the Department of Administrative and Financial Services pursuant to Joint 
Rule 203.
Received by the Clerk of the House on January 10, 2022.  Referred to the Committee on 
Taxation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative TERRY of Gorham.
Be it enacted by the People of the State of Maine as follows:
PART A
Sec. A-1.  36 MRSA §2519, as amended by PL 2021, c. 181, Pt. A, §4, is further 
amended to read:
§2519.  Ratio of tax on foreign insurance companies
An insurance company incorporated in the District of Columbia, a state or possession 
of the United States or province of Canada whose laws impose upon insurance companies 
chartered by this State a greater tax than is provided in this chapter shall pay the same tax 
upon business done by it in this State, in place of the tax provided in any other section of 
this chapter.  If the insurance company fails to pay the tax as provided in section 2521‑A, 
the assessor shall certify that failure to the Superintendent of Insurance, who shall suspend 
the insurance company's right to do business in this State.  For purposes of this section, an 
insurance company incorporated by another country is deemed to be incorporated by the 
state, district or possession of the United States where it has elected to make its deposit and 
establish its principal agency in the United States.  For nonadmitted insurance premiums 
subject to section 2531, the rate applied pursuant to this section must be the highest rate 
that the state, district, possession or province applies to nonadmitted insurance premiums 
taxed in that state, district or possession or province.
Sec. A-2.  36 MRSA §2531, sub-§2, as repealed and replaced by PL 2011, c. 548, 
§19 and affected by §36, is amended to read:
2.  Rate and incidence of tax.  Except as otherwise provided in section 2519 or 2532, 
the rate of taxation is 3% of the on premiums subject to tax under this section is the greater 
of 3% and the highest rate of taxation that applies to nonadmitted insurance premiums in 
the state, district or possession of the United States or province of Canada in which the 
insurer is incorporated.  For all coverage placed in accordance with Title 24-A, chapter 19, 
the tax must be paid by the surplus lines producer.  For all other nonadmitted insurance, 
the tax must be paid by the insured.
Sec. A-3.  36 MRSA §5255-B, as amended by PL 1999, c. 414, §53, is further 
amended to read:
§5255-B.  Certain items of income under the United States Internal Revenue Code
Any A person maintaining an office or transacting business within this State and who 
that is required to deduct and withhold a tax on items of income under the Code, other than 
wages subject to withholding as provided in section 5250 or, sales of real estate subject to 
withholding as provided in section 5250-A or gambling winnings subject to withholding as 
provided in section 5255-C, shall deduct and withhold from such items, to the extent they 
constitute income that is not excluded from taxation under Maine law, a tax equal to 5% of 
the income, unless withholding pursuant to the Code is based on other than a flat rate 
amount.  In that event, the State's withholding procedure should must estimate taxable 
income using the same approach to exemptions as the Code and the amount of tax to be 
withheld should must be calculated in accordance with withholding methods prescribed 
pursuant to section 5250.
Sec. A-4.  36 MRSA §5255-C is enacted to read:
§5255-C.  Withholding on certain gambling winnings
A person maintaining an office or transacting business within this State that is required 
to deduct and withhold a tax on items of income under the Code, Section 3402(q) shall 
deduct and withhold from such items, to the extent they constitute income that is not 
excluded from taxation under Maine law, a tax equal to those winnings multiplied by the 
highest marginal tax rate under section 5111 applicable to the tax year during which the 
winnings are paid plus any other tax applicable to the winnings under this Part.
Sec. A-5. Application. Those sections of this Part that amend the Maine Revised 
Statutes, Title 36, section 2519 and section 2531, subsection 2 apply to tax periods 
beginning on or after January 1, 2023. 
PART B
Sec. B-1.  36 MRSA §208, as repealed and replaced by PL 2019, c. 607, Pt. A, §4, 
is amended to read:
§208.  Equalization
The State Tax Assessor has the duty of equalizing the state and county taxes among all 
municipalities and the unorganized territory.  The State Tax Assessor shall equalize and 
adjust the assessment list of each municipality by adding to or deducting from it such 
amount as will make it equal to its just value as of April 1st.  Notice of the proposed 
valuations of municipalities within each county must be sent annually to the municipal 
officers of each municipality within that county on or before the first day of October.  The 
valuation so determined is subject to review by the State Board of Property Tax Review 
pursuant to subchapter 2‑A, but the valuation finally certified to the Secretary of State 
pursuant to section 381 must be used for all computations required by law to be based upon 
the state valuation with respect to municipalities. A municipality shall provide to the State 
Tax Assessor, upon request, such information as may be necessary for the State Tax 
Assessor to carry out the purposes of this section.
Sec. B-2.  36 MRSA §652, sub-§1, ¶A, as amended by PL 2007, c. 627, §20, is 
further amended to read:
A.  The real estate and personal property owned and occupied or used solely for their 
own purposes by incorporated benevolent and charitable institutions incorporated by 
this State are exempt from taxation.  Such an institution may not be deprived of the 
right of exemption by reason of the source from which its funds are derived or by 
reason of limitation in the classes of persons for whose benefit the funds are applied.
For the purposes of this paragraph, "benevolent and charitable institutions" includes, 
but is not limited to, nonprofit nursing homes licensed by the Department of Health 
and Human Services pursuant to Title 22, chapter 405, nonprofit residential care 
facilities licensed by the Department of Health and Human Services pursuant to Title 
22, chapter 1663, nonprofit community mental health service facilities licensed by the 
Commissioner of Health and Human Services in accordance with rules adopted 
pursuant to Title 34-B, chapter 3 and nonprofit child care centers incorporated by this 
State as benevolent and charitable institutions.  For the purposes of this paragraph, 
"nonprofit" refers to an institution that has been determined by the United States 
Internal Revenue Service to be exempt from taxation under Section 501(c)(3) of the 
Code.
Sec. B-3.  36 MRSA §706-A, sub-§1, as enacted by PL 2017, c. 367, §5, is amended 
to read:
1.  Taxpayers to list property; inquiries.  Before making an assessment, the assessor 
or assessors, chief assessor of a primary assessing area or State Tax Assessor in the case of 
the unorganized territory may give seasonable timely notice in writing to all persons liable 
to taxation or qualifying for an exemption pursuant to subchapter 4‑C in the municipality, 
the primary assessing area or the unorganized territory subject to full or partial 
reimbursement by the State to furnish to the assessor or assessors, chief assessor or State 
Tax Assessor true and perfect lists of all the property the taxpayer possessed on the first 
day of April of the same year and may at the time of the notice or thereafter 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 an exemption pursuant to 
subchapter 4‑C subject to full or partial reimbursement by the State.  The list and answers 
are not conclusive upon the assessor or assessors, chief assessor or State Tax Assessor.
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 expense, 
manufacturing or operational efficiencies, manufactured or generated sales price trends or 
other related information.
A taxpayer has 30 days from receipt of a request for a true and perfect list or of proper 
inquiries to respond to the request or inquiries.  Upon written request to the assessor or 
assessors, chief assessor of a primary assessing area or State Tax Assessor in the case of 
the unorganized territory, a taxpayer is entitled to a 30-day extension to respond to the 
request for a true and perfect list or proper inquiries, 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 is clearly labeled by the taxpayer 
as proprietary and confidential information, is confidential and is not a public record for 
purposes of Title 1, chapter 13.
A notice to or inquiry of a taxpayer made under this section 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 and answers to all proper 
inquiries, the taxpayer may not apply to the assessor or assessors, chief assessor of a 
primary assessing area or State Tax Assessor in the case of the unorganized territory for an 
abatement or appeal an application for abatement of those taxes unless the taxpayer 
furnishes the list and answers with the application and satisfies the assessing authority or 
authority to whom an appeal is made that the taxpayer was unable to furnish the list and 
answers in the time required.  The list and answers are not conclusive upon the assessor or 
assessors, chief assessor or State Tax Assessor.
If the assessor or assessors, chief assessor of a primary assessing area or State Tax Assessor 
in the case of the unorganized territory fails to give notice by mail, the taxpayer is not 
prohibited from applying for an abatement; however, upon demand, the taxpayer shall 
furnish the list and 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. A taxpayer's refusal or 
neglect to answer the inquiries bars an appeal, but the list and answers are not conclusive 
upon the assessor or assessors, chief assessor or State Tax Assessor.
The assessor or assessors, chief assessor of a primary assessing area or State Tax Assessor 
in the case of the unorganized territory may require the person furnishing the list and 
answers to all proper inquiries to subscribe under oath to the truth of the list and answers.
Sec. B-4.  36 MRSA §1483, sub-§7, as amended by PL 2009, c. 434, §20, is further 
amended to read:
7.  Benevolent and charitable institutions.  Vehicles owned and used solely for their 
own purposes by benevolent and charitable institutions that are incorporated by this State 
and entitled to exemption from property tax under section 652, subsection 1;
Sec. B-5.  36 MRSA §6234, as enacted by PL 2021, c. 69, §1, is amended to read:
§6234.  Municipal authority; veterans
The legislative body of a municipality may by ordinance adopt a program to provide 
benefits to veterans with homesteads owning or renting a permanent residence in the 
municipality.
1.  Definitions.  For the purposes of this section, the following terms have the following 
meanings.
A.  "Homestead" has the same meaning as in section 681, subsection 2.
A-1.  "Permanent residence" has the same meaning as in section 681, subsection 3.
B.  "Veteran" has the same meaning as in section 653, subsection 1, paragraph E and 
includes any family members eligible for an exemption under that subsection.
2.  Conditions of program.  A program adopted under this section must:
A.  Require that the claimant has maintained a homestead permanent residence in the 
municipality for a certain period of time, as determined by the municipality;
B.  Provide benefits for both owners and renters of homesteads permanent residences; 
and
C.  Calculate benefits in a way that provides that:
(1)  If the claimant is the owner of the property, the benefit is equal to the difference 
between the reduction in property tax due to the exemptions provided in section 
and the amount of property tax reduction that would have applied if the 
assessed value of the property was the same as the just value; and
(2)  If the claimant is a renter, the benefit is equal to $100.
3.  Repeal of program.  A municipality that has adopted a program under this section 
may repeal it through the same procedure by which the program was adopted.
Sec. B-6.  36 MRSA §6251, sub-§6, as amended by PL 2021, c. 483, Pt. AA, §6, 
is further amended to read:
6.  Appeal.  A taxpayer aggrieved by the denial of a claim for deferral of homestead 
property taxes or disqualification from deferral of homestead property taxes may file an 
appeal of the State Tax Assessor's determination, within 30 days of notification of denial 
or disqualification by the State Tax Assessor, with the State Board of Property Tax Review 
as provided in chapter 101, subchapter 2-A.  When the State Tax Assessor disagrees with 
the municipal valuation of a property subject to deferral, the abatement and appeals process 
under chapter 105, subchapter 8 applies.
PART C
Sec. C-1.  36 MRSA §501, sub-§1-A is enacted to read:
1-A.  Current use program.  "Current use program" means the:
A.  Maine Tree Growth Tax Law established in subchapter 2-A;
B.  Farm and open space tax law established in subchapter 10; and
C.  Current use valuation of certain working waterfront land tax law established in 
subchapter 10-A.
Sec. C-2.  36 MRSA §578, sub-§1, as amended by PL 2021, c. 398, Pt. J, §1, is 
further amended by amending the first blocked paragraph to read:
The State Tax Assessor shall determine annually the amount of acreage in each 
municipality that is classified and taxed in accordance with this subchapter.  Each 
municipality is entitled to annual payments distributed in accordance with this section from 
money appropriated by the Legislature if it submits a completed annual return in 
accordance with section 383.  The State Tax Assessor shall pay any municipal claim found 
to be in satisfactory form by October 15th of the year following the submission of the 
annual return.  The total municipal reimbursement appropriation is calculated on the basis 
of 90% of the tax lost as a result of this subchapter.  For purposes of this section, "classified 
forest lands" means forest lands classified pursuant to this subchapter as well as all areas 
identified as forested land within farmland parcels that are transferred from tree growth 
classification pursuant to section 1112 on or after October 1, 2011. For the purposes of this 
section, "tax lost" means the tax that would have been assessed, but for this subchapter, on 
the classified forest lands if they were assessed according to the current regional per acre 
undeveloped land value as determined for state valuation purposes, or according to the 
current local per acre undeveloped land value as determined for state valuation purposes, 
whichever is less, minus the tax that was actually assessed on the same lands in accordance 
with this subchapter, and adjusted for the aggregate municipal savings in required 
educational costs attributable to the reduction in state valuation as a result of this 
subchapter.  A municipality that fails to achieve the minimum assessment ratio established 
in section 327 loses 10% of the reimbursement provided by this section for each one 
percentage point the minimum assessment ratio falls below the ratio established in section 
327.
Sec. C-3.  36 MRSA §578, sub-§1, ¶C, as amended by PL 2021, c. 398, Pt. J, §1, 
is further amended by amending subparagraph (2), division (a) to read:
(a)  Classified under the laws governing a current use valuation set forth in 
chapter 105, subchapter 2‑A, 10 or 10-A program;
Sec. C-4.  36 MRSA §581, sub-§1-A, as amended by PL 2011, c. 618, §4, is further 
amended to read:
1-A.  Notice of compliance.  No earlier than 185 days prior to a deadline established 
by section 574‑B, if the landowner owner has not yet complied with the requirements of 
that section, the assessor must provide the landowner owner with written notice by certified 
mail informing the landowner owner of the statutory requirements that need to be met to 
comply with section 574‑B and the date of the deadline for compliance or by which the 
parcel may be transferred to open space classification pursuant to subchapter 10 another 
current use program.  The notice must also state that if the owner fails to meet the deadline 
for complying with section 574‑B or transferring the parcel to open space classification 
another current use program, a supplemental assessment of $500 will be assessed and that 
continued noncompliance will lead to a subsequent supplemental assessment of $500.  If 
the notice is issued less than 120 days before the deadline, the owner has 120 days from 
the date of the notice to provide the assessor with the documentation to achieve compliance 
with section 574‑B or transfer the parcel to open space classification another current use 
program, and the notice must specify the date by which the owner must comply.
If the landowner owner fails to provide the assessor with the documentation to achieve 
compliance with section 574‑B or transfer the parcel to open space classification pursuant 
to subchapter 10 another current use program by the deadline specified in the notice, the 
assessor shall impose a $500 penalty to be assessed and collected as a supplemental 
assessment in accordance with section 713‑B.  The assessor shall send notification of the 
supplemental assessment by certified mail and notify the landowner owner that, no later 
than 6 months from the date of the 2nd notice, the landowner owner must comply with the 
requirements of section 574‑B or transfer the parcel to open space classification pursuant 
to subchapter 10 another current use program and that failure to comply will result in an 
additional supplemental assessment of $500 and the landowner owner will have an 
additional 6-month period in which to comply with these requirements before the 
withdrawal of the parcel and the assessment of substantial financial penalties against the 
landowner owner.
At the expiration of 6 months, if the landowner owner has not complied with section 574‑B 
or transferred the parcel to open space classification under subchapter 10 another current 
use program, the assessor shall assess an additional $500 supplemental assessment.  The 
assessor shall send notification of the 2nd supplemental assessment by certified mail and 
notify the landowner owner that, no later than 6 months from the date of the notice, the 
landowner owner must comply with the requirements of section 574‑B or transfer the parcel 
to open space classification pursuant to subchapter 10 another current use program or the 
land will be withdrawn from the tree growth tax program taxation under this subchapter.
If the landowner owner has not complied within 6 months from the date of the 2nd 
supplemental assessment, the assessor shall remove the parcel from taxation under this 
subchapter and assess a penalty for the parcel's withdrawal pursuant to subsection 3.
This subsection does not limit the assessor from issuing other notices or compliance 
reminders to property owners at any time in addition to the notice required by this 
subsection.
Sec. C-5.  36 MRSA §581, sub-§3, as repealed and replaced by PL 2007, c. 627, 
§16, is amended to read:
3.  Penalty.  If land is withdrawn from taxation under this subchapter, the assessor shall 
impose a penalty upon the owner. The penalty is the greater of:
A.  An amount equal to the taxes that would have been assessed on the land on the first 
day of April for the 5 tax years, or any lesser number of tax years starting with the year 
in which the land was first classified, preceding the withdrawal had that land been 
assessed in each of those years at its just value on the date of withdrawal. That amount 
must be reduced by less all taxes paid on that land over the preceding 5 years, or any 
lesser number of tax years starting with the year in which the land was first classified, 
and increased by interest at the prevailing municipal rate from the date or dates on 
which those amounts would have been payable; and
B.  An amount computed by multiplying the amount, if any, by which the just value of 
the land on the date of withdrawal exceeds the 100% valuation of the land pursuant to 
this subchapter on the preceding April 1st by the following rates.
(1)  If the land was subject to valuation under this subchapter for 10 years or less 
fewer prior to the date of withdrawal, the rate is 30%.
(2)  If the land was subject to valuation under this subchapter for more than 10 
years prior to the date of withdrawal, the rate is that percentage obtained by 
subtracting 1% from 30% reduced by one percentage point for each full year 
beyond 10 years that the land was subject to valuation under this subchapter prior 
to the date of withdrawal, except that the minimum rate is 20%.
For purposes of this subsection, just value at the time of withdrawal is the assessed just 
value of comparable property in the municipality adjusted by the municipality's certified 
assessment ratio.
Sec. C-6.  36 MRSA §581, sub-§4, as repealed and replaced by PL 2007, c. 627, 
§16, is amended to read:
4.  Assessment and collection of penalties.  The owner shall pay the penalties for 
withdrawal under this section must be paid upon withdrawal to the tax collector as 
additional property taxes. Penalties may be assessed and collected as supplemental 
assessments in accordance with section 713‑B.
Sec. C-7.  36 MRSA §581, sub-§5, as repealed and replaced by PL 2007, c. 627, 
§16, is amended to read:
5.  Eminent domain.  A penalty may not be assessed under this section for a if the 
withdrawal of the parcel is occasioned by a transfer to an the State or other entity holding 
the power of eminent domain if the transfer results resulting from the exercise or threatened 
exercise of that power.
Sec. C-8.  36 MRSA §581, sub-§6, as repealed and replaced by PL 2007, c. 627, 
§16, is amended to read:
6.  Relief from requirements.  Upon withdrawal under this section, the land is relieved 
of the requirements of this subchapter immediately and is returned to taxation under chapter 
105, subchapter 2 beginning the following April 1st following withdrawal.
Sec. C-9.  36 MRSA §581, sub-§7, as repealed and replaced by PL 2007, c. 627, 
§16, is amended to read:
7.  Reclassification as farmland or open space land under other current use 
program.  A penalty may not be assessed upon the withdrawal of land from taxation under 
this subchapter if the owner applies for classification of that land as farmland or open space 
land under subchapter 10 in another current use program prior to withdrawal and that 
application is accepted. If a penalty is later assessed under section 1112 1112-C or 1138, 
the period of time that the land was taxed as forest land under this subchapter is included 
for purposes of establishing the amount of the penalty.
Sec. C-10.  36 MRSA §713-B, as enacted by PL 1993, c. 452, §6, is amended to 
read:
§713-B.  Penalties assessed as supplemental assessments
Penalties imposed under section 581 or 1112, 1112-C or 1138 may be assessed as 
supplemental assessments pursuant to section 713 regardless of the number of years 
applicable in determining the penalty.
Sec. C-11.  36 MRSA §1109, sub-§5, as repealed and replaced by PL 2007, c. 438, 
§28, is amended by amending the first blocked paragraph to read:
If the owner fails to report to the assessor as required by this subsection, the assessor shall 
assess those taxes that should have been required to be paid, shall assess the penalty 
provided in section 1112 1112-C and shall assess an additional penalty equal to 25% of the 
penalty provided in section 1112 1112-C.  The assessor may waive the additional penalty 
for cause.
Sec. C-12.  36 MRSA §1112, as amended by PL 2019, c. 379, Pt. A, §6, is repealed.
Sec. C-13.  36 MRSA §1112-C is enacted to read:
§1112-C.  Recapture penalty
1.  Assessor determination; owner request.  If the assessor determines that land 
subject to this subchapter no longer meets the requirements of this subchapter, the assessor 
shall withdraw the land from taxation under this subchapter.  The owner of land subject to 
this subchapter may at any time request withdrawal of any of the owner's land from taxation 
under this subchapter by certifying in writing to the assessor that the land is no longer to 
be classified under this subchapter.  For purposes of this section, the transfer of land 
between different classifications within this subchapter does not constitute a withdrawal. 
2.  Withdrawal of portion.  In the case of withdrawal of a portion of farmland or open 
space land, the owner, as a condition of withdrawal, shall file with the assessor a schedule 
including the information required under section 1109 showing the area withdrawn and the 
area remaining under this subchapter.
3.  Penalty.  If land is withdrawn from taxation under this subchapter, the assessor shall 
impose a penalty upon the owner.  The penalty is the greater of:
A.  An amount equal to the taxes that would have been assessed on the land on the first 
day of April for the 5 tax years, or any lesser number of tax years starting with the year 
in which the land was first classified, preceding the withdrawal had that land been 
assessed in each of those years at its just value on the date of withdrawal less all taxes 
paid on that land over the preceding 5 years, or any lesser number of tax years starting 
with the year in which the land was first classified, and increased by interest at the 
prevailing municipal rate from the date or dates on which those amounts would have 
been payable; and 
B.  An amount computed by multiplying the amount, if any, by which the just value of 
the land on the date of withdrawal exceeds the 100% valuation of the land pursuant to 
this subchapter on the preceding April 1st by the following rates:
(1)  If the land was subject to valuation under this subchapter for 10 years or fewer 
prior to the date of withdrawal, the rate is 30%; and
(2)  If the land was subject to valuation under this subchapter for more than 10 
years prior to the date of withdrawal, the rate is 30% reduced by one percentage 
point for each full year beyond 10 years that the land was subject to valuation under 
this subchapter prior to the date of withdrawal, except that the minimum rate is 
20%.  
For purposes of this subsection, just value at the time of withdrawal is the assessed just 
value of comparable property in the municipality adjusted by the municipality's certified 
assessment ratio.
4.  Assessment and collection of penalties.  The owner shall pay the penalties for 
withdrawal upon withdrawal to the tax collector as additional property taxes. Penalties may 
be assessed and collected as supplemental assessments in accordance with section 713‑B.
5.  Eminent domain.  A penalty may not be assessed under this section if the 
withdrawal of the parcel is occasioned by a transfer to the State or other entity holding the 
power of eminent domain resulting from the exercise or threatened exercise of that power.
6.  Relief from requirements.  Upon withdrawal, the land is relieved of the 
requirements of this subchapter immediately and is returned to taxation under subchapter 
beginning the April 1st following withdrawal.
7.  Reclassification under other current use program.  A penalty may not be 
assessed upon the withdrawal of land from taxation under this subchapter if the owner 
applies for classification of that land in another current use program prior to withdrawal 
and the application is accepted.  If a penalty is later assessed under section 581 or 1138, the 
period of time that the land was taxed as farmland or open space land under this subchapter 
is included for purposes of establishing the amount of the penalty.
8.  Report of penalty.  A municipality that receives a penalty for the withdrawal of 
land from taxation under this subchapter shall report to the State Tax Assessor the total 
amount received in that reporting year on the municipal valuation return form described in 
section 383.
9.  Collection of farmland penalty; annual installments.  An owner of farmland that 
has been classified under this subchapter for 5 full years or more may pay any penalty owed 
under this section in up to 5 equal annual installments with interest at the rate set by the 
municipality, which begins to accrue 60 days after the date of assessment. Notwithstanding 
section 943, for an owner paying a penalty under this subsection, the period during which 
the tax lien mortgage, including interest and costs, must be paid to avoid foreclosure and 
expiration of the right of redemption is 48 months from the date of the filing of the tax lien 
certificate.
Sec. C-14.  36 MRSA §1113, as amended by PL 2009, c. 496, §9, is further amended 
to read:
§1113.  Enforcement provision
A lien is created to secure the payment of the penalties provided in section 1109, 
subsections 2 and 5 and section 1112 1112-C, which may be enforced in the same manner 
as liens created by section 552.
Sec. C-15.  36 MRSA §1115, as amended by PL 2009, c. 496, §10, is further 
amended to read:
§1115.  Transfer of portion of parcel of land
Transfer of a portion of a parcel of farmland subject to taxation under this subchapter 
does not affect the taxation under this subchapter of the resulting parcels unless they do not 
meet the minimum acreage requirements of this subchapter.  Transfer of a portion of a 
parcel of open space land subject to taxation under this subchapter does not affect the 
taxation under this subchapter of the resulting parcels unless either or both of the parcels 
no longer provide a public benefit in one of the areas enumerated in section 1102, 
subsection 6.  Each resulting parcel must be taxed to the owners under this subchapter until 
it is withdrawn from taxation under this subchapter, in which case the penalties provided 
in section 1112 1112-C apply only to the owner of that parcel.  If the transfer of a portion 
of a parcel of farmland subject to taxation under this subchapter results in the creation of a 
parcel that is less than the minimum acreage required by this subchapter or if the transfer 
of a portion of a parcel of open space land subject to taxation under this subchapter results 
in the creation of a parcel that no longer provides a public benefit in one of the areas 
enumerated in section 1102, subsection 6, that parcel is deemed to have been withdrawn 
from taxation under this subchapter as a result of the transfer and is subject to the penalties 
provided in section 1112 1112-C.
Sec. C-16.  36 MRSA §1121, as amended by PL 2001, c. 652, §9 and PL 2011, c. 
657, Pt. W, §5, is further amended to read:
§1121.  Program monitoring
The Department of Agriculture, Conservation and Forestry and the Bureau of Revenue 
Services shall periodically review the level of participation in the farm and open space tax 
program, the taxes saved due to that participation, the fiscal impact, if any, on 
municipalities, including the impact of any penalties assessed under section 1112 1112-C 
and the effectiveness of the program in preserving farmland and open space.  The 
department and the bureau may report to the joint standing committee of the Legislature 
having jurisdiction over taxation matters on the status of the program.  The department and 
the bureau may identify problems that prevent realization of the purposes of this subchapter 
and potential solutions to remedy those problems.
Sec. C-17.  36 MRSA §1138, as enacted by PL 2007, c. 466, Pt. A, §58, is amended 
to read:
§1138.  Recapture penalty
1.  Assessor determination; owner request.  If the assessor determines that land 
subject to this subchapter no longer meets the requirements of this subchapter, the assessor 
must withdraw the land from taxation under this subchapter.  The owner or owners of land 
subject to this subchapter may at any time request withdrawal of any land from taxation 
under this subchapter by certifying in writing to the assessor that the land is no longer to 
be classified under this subchapter.
2.  Withdrawal of portion.  In the case of withdrawal of a portion of the working 
waterfront land, the owner or owners, as a condition of withdrawal, shall file with the 
assessor a schedule including the information required under section 1137, subsection 1 
showing the area withdrawn and the area remaining under this subchapter.
3.  Penalty.  If land is withdrawn from taxation under this subchapter, the assessor shall 
impose a penalty upon the owner or owners.  The penalty is the greater of:
A.  An amount equal to the taxes that would have been assessed on the land on the first 
day of April for the 5 tax years, or any lesser number of tax years starting with the year 
in which the property land was first classified, preceding such the withdrawal had such 
real estate that land been assessed in each of those years at its just value on the date of 
withdrawal less all taxes paid on that real estate land over the preceding 5 years, or any 
lesser number of tax years starting with the year in which the land was first classified, 
and increased by interest at the prevailing municipal rate from the date or dates on 
which those amounts would have been payable; and
B.  An amount computed by multiplying the amount, if any, by which the fair market 
just value of the real estate land on the date of withdrawal exceeds the 100% valuation 
of the real estate land pursuant to this subchapter on the preceding April 1st by the 
following rates:
(1)  If the real estate land was subject to valuation under this subchapter for 10 
years or less prior to the date of withdrawal, the rate is 30%; and
(2)  If the real estate land was subject to valuation under this subchapter for more 
than 10 years prior to the date of withdrawal, the rate is that percentage obtained 
by subtracting 1% from 30% reduced by one percentage point for each full year 
beyond 10 years that the real estate land was subject to valuation under this 
subchapter prior to the date of withdrawal until a, except that the minimum rate of 
is 20% is reached.
For purposes of this section subsection, just value at the time of withdrawal is the assessed 
just value of comparable property in the municipality adjusted by the municipality's 
certified assessment ratio.
4.  Assessment and collection of penalties.  The owner shall pay the penalties for 
withdrawal must be paid upon withdrawal to the tax collector as additional property taxes. 
Penalties may be assessed and collected as supplemental assessments in accordance with 
section 713‑B.
5.  Eminent domain.  A penalty may not be assessed under this section if the 
withdrawal of the parcel is occasioned by a transfer to the State or other entity holding the 
power of eminent domain resulting from the exercise or threatened exercise of that power.
6.  Relief from requirements.  Upon withdrawal, the land is relieved of the 
requirements of this subchapter immediately and is returned to taxation under the statutes 
relating to the taxation of real property to be so taxed on subchapter 2 beginning the 
following April 1st following withdrawal.
7.  Reclassification as open space under other current use program.  No A penalty 
may not be assessed upon the withdrawal of land from taxation under this subchapter if the 
owner or owners apply applies for and are accepted for classification of that land as open 
space land under subchapter 10 in another current use program prior to withdrawal and that 
application is accepted. If a penalty is later assessed under section 581 or section 1112-C, 
the period of time that the land was taxed as working waterfront land under this subchapter 
is included for purposes of establishing the amount of the penalty.
8.  Report of penalty.  Any municipality that receives a penalty for the withdrawal of 
land from taxation under this subchapter shall report to the State Tax Assessor the total 
amount received in that reporting year on the municipal valuation return form described in 
section 383.
PART D
Sec. D-1.  23 MRSA §4210-B, sub-§7-A, as amended by PL 2021, c. 446, §1, is 
further amended to read:
7-A.  Sales tax revenue.  Beginning July 1, 2012 and every On July 1st thereafter, 
except as provided in Title 36, section 1820 of each year, the State Controller shall transfer 
to the Multimodal Transportation Fund an amount, as certified by the State Tax Assessor, 
that is equivalent to 100% of the revenue from the tax imposed on the value of rental of a 
pickup truck or van with a gross weight of less than 26,000 pounds rented from a person 
primarily engaged in the business of renting automobiles and the value of rental for a period 
of less than one year of an automobile pursuant to Title 36, section 1811 for the first 6 
months of the prior fiscal year after the reduction for the transfer to the Local Government 
Fund as described by Title 30‑A, section 5681, subsection 5 and the transfer to the ATV 
Recreational Management Fund pursuant to Title 36, section 1820.  Beginning on October 
1, 2012 and every On October 1st thereafter, except as provided in Title 36, section 1820 
of each year, the State Controller shall transfer to the Multimodal Transportation Fund an 
amount, as certified by the State Tax Assessor, that is equivalent to 100% of the revenue 
from the tax imposed on the value of rental of a pickup truck or van with a gross weight of 
less than 26,000 pounds rented from a person primarily engaged in the business of renting 
automobiles and the value of rental for a period of less than one year of an automobile 
pursuant to Title 36, section 1811 for the last 6 months of the prior fiscal year after the 
reduction for the transfer to the Local Government Fund as described by Title 30‑A, section 
5681, subsection 5 and the transfer to the ATV Recreational Management Fund pursuant 
to Title 36, section 1820.  The tax amount must be based on actual sales for that fiscal year 
and may not consider any accruals that may be required by law.
Sec. D-2.  36 MRSA §1820, as enacted by PL 2021, c. 446, §2, is amended to read:
§1820.  Tax on rental of all-terrain vehicles
By the 20th day of each month beginning January 1, 2022 and ending July 20, 2022, 
the assessor shall notify the State Controller and the Treasurer of State of the amount of 
revenue attributable to the tax collected under this Part on the rental of all-terrain vehicles 
as defined in Title 12, section 13001, subsection 3.  When notified by the assessor, the State 
Controller shall transfer 90% of that amount to the ATV Recreational Management Fund 
established in Title 12, section 1893, subsection 2 and 10% to the Multimodal 
Transportation Fund established in Title 23, section 4210-B.
Beginning July 1, 2023 and every July 1st thereafter, the State Controller shall transfer 
to the ATV Recreational Management Fund established in Title 12, section 1893, 
subsection 2 an amount, as certified by the State Tax Assessor, that is equivalent to 90% of 
the revenue from the tax imposed under this Part on the rental of all-terrain vehicles for the 
first 6 months of the prior fiscal year after the reduction for the transfer to the Local 
Government Fund as described by Title 30-A, section 5681, subsection 5. Beginning on 
October 1, 2023 and every October 1st thereafter, the State Controller shall transfer to the 
ATV Recreational Management Fund an amount, as certified by the State Tax Assessor, 
that is equivalent to 90% of the revenue from the tax imposed under this Part on the rental 
of all-terrain vehicles for the last 6 months of the prior fiscal year after the reduction for 
the transfer to the Local Government Fund as described by Title 30-A, section 5681, 
subsection 5. The remaining 10% of the revenue from the tax imposed under this Part on 
the rental of all-terrain vehicles is transferred to the Multimodal Transportation Fund 
pursuant to Title 23, section 4210-B, subsection 7-A. The tax amount must be based on 
actual sales for that fiscal year and may not consider any accruals that may be required by 
law.
SUMMARY
Part A makes changes to the insurance premiums tax and income tax law. Part A:
1.  Specifies that, for tax periods beginning on or after January 1, 2023, premiums on 
contracts sold by insurance producers through nonadmitted insurers and premiums paid by 
insureds on self-procured contracts from nonadmitted insurers are subject to tax at the 
higher of Maine’s tax rate and the tax rate of the state of incorporation of the insurance 
company that is underwriting the policy; and
2. Increases the withholding rate applicable to certain gambling winnings subject to 
Maine tax from 5% of the winnings to the highest marginal tax rate applicable to the tax 
year during which the winnings are paid, plus any other applicable tax under the Maine 
Revised Statutes, Title 36, Part 8 relating to income taxes.  
Part B makes changes to the property tax law.  Part B:
1.  Requires municipalities to annually provide information needed by the Department 
of Administrative and Financial Services, Bureau of Revenue Services to conduct state 
valuation;
2.  Removes an obsolete reference to state property tax;
3.  Removes the requirement for benevolent and charitable institutions to be 
incorporated in Maine to be exempt from taxation;
4.  Allows assessors to request information from taxpayers regarding property 
qualifying for an exemption that is subject to full or partial reimbursement by the State;
5.  Strikes the provision under the deferred collection of homestead property taxes 
applying the abatement and appeals process under Title 36, chapter 105, subchapter 8 to 
situations in which the State Tax Assessor disagrees with the municipal valuation of a 
property subject to deferral; and
6.  Replaces the term “homestead” with the term “permanent residence” in Title 36, 
section 6234, regarding municipal benefits to veterans, to better align the definition with 
the benefit to renters allowed under that section.
Part C expands the penalty-free reclassification of land taxed under the Maine Tree 
Growth Tax Law and farm and open space law to include reclassifications into and out of 
working waterfront land without incurring a penalty.  In addition, it clarifies and aligns the 
penalty provisions for tree growth, farm and open space and working waterfront current 
use classifications. 
Part D changes the monthly transfer of sales tax revenue to the ATV Recreational 
Management Fund to a biannual transfer, beginning July 1, 2023, of sales tax revenue from 
the prior fiscal year and clarifies that the transfer is reduced by the transfer to the Local 
Government Fund.