An Act to Amend the State Tax Laws
Maine Legislature, Session 131, LD 1808
Committee: Taxation
Sponsors: PERRY
Amends: 36 MRSA §1951-C, 36 MRSA §2557, 36 MRSA §653, 36 MRSA §694, 36 MRSA §701-A, 36 MRSA §6260, 36 MRSA §6263, 36 MRSA §2521-A, 36 MRSA §2531, 36 MRSA §5122, 36 MRSA §5147, 36 MRSA §5219-P, 36 MRSA §5231, 36 MRSA §6753, 36 MRSA §6281, 36 MRSA §4401, 36 MRSA §4402, 36 MRSA §4403, 36 MRSA §4403-A, 36 MRSA §4404, 36 MRSA §4404-A, 36 MRSA §4404-B, 36 MRSA §4404-C, 36 MRSA §191

Legislative Document
No. 1808
H.P. 1153
House of Representatives, April 25, 2023
An Act to Amend the State Tax Laws
(EMERGENCY)
Submitted by the Department of Administrative and Financial Services pursuant to Joint 
Rule 204.
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative PERRY of Bangor.
Emergency preamble.  Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, legislative action is immediately necessary to ensure continued and 
efficient administration of municipal property taxes and the property tax stabilization for 
senior citizens program; and
Whereas, the property tax stabilization for senior citizens program needs to be 
updated before the 90-day period expires to avoid delay in the processing of municipal 
property taxes and municipal applications for state reimbursement; 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:
PART A
Sec. A-1.  36 MRSA §1951-C, sub-§1, as enacted by PL 2019, c. 441, §8, is 
amended to read:
1.  Responsibilities of marketplace facilitator.  A marketplace facilitator is 
considered a retailer for each sale of tangible personal property or taxable services for 
delivery in this State that the marketplace facilitator facilitates on or through its 
marketplace, including for the collection of the recycling assistance fee pursuant to chapter 
719.
Sec. A-2.  36 MRSA §2557, sub-§27, as enacted by PL 2003, c. 673, Pt. V, §25 
and affected by §29, is amended to read:
27.  Nonprofit housing development organizations.  Sales to nonprofit organizations 
whose primary purpose is to develop housing for low-income people. For the purposes of 
this subsection, "low-income" means having income that is less than 120% of the median 
income for the area, adjusted for family size, as established by the United States 
Department of Housing and Urban Development or its successor organization;
Sec. A-3.  Effective date. This Part takes effect 90 days following adjournment of 
the First Regular Session of the 131st Legislature.
PART B
Sec. B-1.  36 MRSA §653, sub-§1, ¶C, as amended by PL 2021, c. 682, §1, is 
further amended by amending subparagraph (1) to read:
(1)  During any federally recognized war period, including the Korean Conflict, 
the Vietnam War, the Persian Gulf War, the periods from August 24, 1982 to July 
31, 1984 and December 20, 1989 to January 31, 1990, Operation Enduring 
Freedom, Operation Iraqi Freedom and Operation New Dawn, or during the period 
from February 1, 1955 to February 27, 1961, or who were awarded the Armed 
Forces Expeditionary Medal an expeditionary medal for service in the Armed 
Forces of the United States, when they have reached the age of 62 years or when 
they are receiving any form of pension or compensation from the United States 
Government for total disability, service-connected or nonservice-connected, as a 
veteran.  A veteran of the Vietnam War must have served on active duty after 
February 27, 1961 and before May 8, 1975.  "Persian Gulf War" means service on 
active duty on or after August 2, 1990 and before or on the date that the United 
States Government recognizes as the end of that war period; or
Sec. B-2.  36 MRSA §653, sub-§1, ¶D-1, as amended by PL 2021, c. 682, §2, is 
further amended to read:
D-1.  The estates up to the just value of $50,000, having a taxable situs in the place of 
residence, for specially adapted housing units, of veterans who served in the Armed 
Forces of the United States during any federally recognized war period, including the 
Korean Conflict, the Vietnam War, the Persian Gulf War, the periods from August 24, 
1982 to July 31, 1984 and December 20, 1989 to January 31, 1990, Operation Enduring 
Freedom, Operation Iraqi Freedom and Operation New Dawn, or during the period 
from February 1, 1955 to February 27, 1961, or who were awarded the Armed Forces 
Expeditionary Medal an expeditionary medal for service in the Armed Forces of the 
United States, and who are paraplegic veterans within the meaning of as described in 
United States Code, Chapter 21, Section 2101, and who received a grant from the 
United States Government for any such housing, or of the unremarried widows or 
widowers of those veterans.  A veteran of the Vietnam War must have served on active 
duty after February 27, 1961 and before May 8, 1975.  "Persian Gulf War" means 
service on active duty on or after August 2, 1990 and before or on the date that the 
United States Government recognizes as the end of that war period.  The exemption 
provided in this paragraph applies to the property of the veteran including property 
held in joint tenancy with a spouse or held in a revocable living trust for the benefit of 
that veteran.
Sec. B-3.  36 MRSA §694, sub-§2, ¶B, as amended by PL 2013, c. 544, §4 and 
affected by §7, 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 1/2 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 taxable business 
personal property in the municipality, whether taxable or exempt plus the value of 
exempt eligible business equipment, 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.
Sec. B-4.  36 MRSA §701-A, 3rd ¶, as enacted by PL 2021, c. 663, §1, is amended 
to read:
For the purpose of establishing the valuation of improved real property, the property 
must be valued based on its highest and best use as of April 1st of each year, taking all of 
the following 3 approaches to value into consideration: cost, income capitalization and 
sales comparison. In establishing the valuation of improved real property, assessors shall 
consider age, condition, use, type of construction, location, design, physical features and 
economic characteristics.
Sec. B-5.  36 MRSA §701-A, 4th ¶, as enacted by PL 2021, c. 663, §2, is amended 
to read:
In determining just value, consistent with the Constitution of Maine, Article IX, 
Section 8, a property subject to restrictions, contractual or otherwise, that restrict the 
permitted use of a property may not be considered comparable to property not so restricted, 
unless the value of that restricted property is adjusted for the restriction.
Sec. B-6.  36 MRSA §6260, sub-§2, as amended by PL 1991, c. 846, §38, is further 
amended to read:
2.  Deferred property taxes due.  The amounts of deferred property taxes, including 
accrued interest, for all years are due and payable to the bureau April 30th of the year 
following the calendar year in within 12 months of the date on which the circumstance 
occurs, except as provided in subsection 3 and section sections 6261 and 6263;
Sec. B-7.  36 MRSA §6263, as enacted by PL 1989, c. 534, Pt. C, §1, is amended to 
read:
§6263.  Extension of time for payment upon death of claimant or spouse
1.  Payment extension.  If the taxpayer who claimed homestead property tax deferral 
dies, or if a spouse who continued the deferral under section 6261 dies, the bureau may 
extend the time for payment of the deferred taxes and interest accruing with respect to the 
taxes becoming due and payable under section 6260, subsection 2, if:
A.  The homestead property becomes property of an individual or individuals:
(1)  By inheritance or devise; or
(2)  If the individual or individuals are heirs or devisees in the course of settlement 
of the estate;
B.  An individual or individuals commence occupancy of the property as a principal 
residence on or before August 15th of the calendar year following the calendar year 
within 12 months of the date of death; or and
C.  An individual or individuals make application to the bureau for an extension of time 
for payment of the deferred taxes and interest prior to August 15th of the calendar year 
following the calendar year within 12 months of the date of death.
2.  Extension terms.  Subject to paragraph B, an extension granted under this section 
shall subsection 1 must be for a period not to exceed 5 6 years after August 15th of the 
calendar year following the calendar year from the date of death.  The terms and conditions 
under which the extension is granted shall must be in accordance with a written agreement 
entered into by the bureau and the individual or individuals.
An extension granted under this section shall terminate terminates immediately if:
A.  The homestead property is sold or otherwise transferred by any party to the 
extension agreement;
B.  All of the heirs or devisees who are parties to the extension agreement cease to 
occupy the property as a principal residence; or
C.  The homestead property, a mobile or floating home, is moved out of the State.
3.  Accrued interest.  During the period of extension, and until paid, the deferred taxes 
shall continue to accrue interest in the same manner and at the same rate as provided under 
section 6255, subsection 3.  No interest Interest may not accrue upon interest.
Sec. B-8.  Effective date. This Part takes effect 90 days following adjournment of 
the First Regular Session of the 131st Legislature.
PART C
Sec. C-1.  36 MRSA §2521-A, first ¶, as amended by PL 2015, c. 300, Pt. A, §29, 
is further amended to read:
Every insurance company, association, producer or attorney-in-fact of a reciprocal 
insurer subject to the tax imposed by this chapter shall make payment of estimated tax on 
or before the last day of each April, the 25th day of each June and the last day of each 
October. Each April and June estimated tax payment must equal 35% of the total tax paid 
for the preceding calendar year or at least 35% of the total tax to be paid for the current 
calendar year and each October estimated tax payment must equal 15% of the total tax paid 
for the preceding calendar year or at least 15% of the total tax to be paid for the current 
calendar year. except that, for the tax on nonadmitted insurance premiums under section 
2531, the surplus lines producer or the insured may elect to determine the estimated tax 
payment for each estimated tax period on the basis of premiums on contracts written during 
each estimated tax period of the current calendar year. A final return must be filed on or 
before March 15th covering the prior calendar year.
Sec. C-2.  36 MRSA §2531, sub-§1, as repealed and replaced by PL 2011, c. 548, 
§19 and affected by §36, is amended to read:
1.  Generally.  All gross direct insurance premiums and annuity considerations paid to 
on contracts written by insurers that do not have certificates of authority to do business in 
this State issued by the Superintendent of Insurance pursuant to Title 24‑A are subject to 
taxation in accordance with this section if this State is the insured's home state, as defined 
in the federal Nonadmitted and Reinsurance Reform Act of 2010, Public Law 111-203, 
Section 527.  This section does not apply to reinsurance premiums paid by an authorized 
domestic insurer.
Sec. C-3.  36 MRSA §5122, sub-§1, ¶Z, as repealed and replaced by PL 2009, c. 
496, §21, is repealed.
Sec. C-4.  36 MRSA §5122, sub-§2, ¶HH, as amended by PL 2013, c. 331, Pt. C, 
§32, is further amended to read:
HH.  To the extent included in federal adjusted gross income, annuity payments made 
to the survivor of a deceased member of the military who died as the result of service 
in active or reserve components of the United States Army, Navy, Air Force, Marines 
or Coast Guard under a survivor benefit plan or reserve component survivor benefit 
plan pursuant to 10 United States Code, Chapter 73 reduced by any amount claimed as 
a modification under paragraph M or, M-1 or M-2;
Sec. C-5.  36 MRSA §5147, as enacted by PL 2019, c. 401, Pt. C, §7 and amended 
by c. 607, Pt. C, §3, is further amended to read:
§5147.  Installment sale election
Notwithstanding any provision of this Part to the contrary, an individual who 
transferred, during the taxable year, real or tangible personal property located in this State 
under an installment sale agreement may elect to recognize, for purposes of determining 
the taxable income under this chapter, the total gain from that sale in the taxable year of 
the transfer, or to recognize any remaining gain in a subsequent tax year to the extent of 
the gain not reported in a prior tax year.  An election under this section is not available to 
an individual unless that individual is a nonresident of this State at the time of the transfer 
or at the time the election is made by the individual. Any installment interest related to the 
sale of property for which an election is made under this section is excluded from the 
taxable income of the nonresident individual under chapter 807 for the taxable year for 
which the election under this section is made and any subsequent taxable year.  The interest 
exclusion in this section does not apply to any loan interest arrangement which has as a 
principal purpose the avoidance of any tax of this State. An election under this section must 
be made on a timely filed original income tax return, including if filed by any extension 
granted for filing the return, and, once made, is irrevocable.
Sec. C-6.  36 MRSA §5219-PP, sub-§6 is enacted to read:
6.  Application.  Except for the credit allowed with respect to the carry-forward of 
unused credit amounts pursuant to subsection 4, the tax credit allowed under this section 
does not apply to taxable years beginning on or after January 1, 2024.
Sec. C-7.  36 MRSA §5231, sub-§1-A, as amended by PL 2019, c. 659, Pt. G, §2, 
is further amended to read:
1-A.  Federal extension.  When an individual, estate or trust is granted an extension 
of time within which to file a federal income tax return for any taxable year, an extension 
to file the taxpayer's income tax return with respect to the tax imposed by this Part is 
automatically granted for an equivalent period from the date prescribed for filing the return.  
When a taxable corporation or a financial institution subject to the tax imposed by chapter 
is granted an extension of time within which to file its federal income tax return for 
any taxable year, an extension to file the taxpayer's income tax or franchise tax return with 
respect to the tax imposed by this Part is automatically granted for an equivalent period 
from the date prescribed for filing the return plus 30 days.
Sec. C-8.  36 MRSA §6753, sub-§12, as amended by PL 2015, c. 368, §5, is further 
amended to read:
12.  Qualified employee.  Except for an employee in a call center in Aroostook County 
or Washington County, "qualified employee" means a new, full-time employee hired in 
this State by a qualified business, for whom a retirement program subject to the federal 
Employee Retirement Income Security Act of 1974, 29 United States Code, Chapter 18 
and group health insurance are provided, and whose income derived from employment with 
the applicant, calculated on a calendar year basis, is greater than the most recent annual per 
capita personal income in the county in which the qualified employee is employed, as long 
as Maine income tax withholding gross wages paid attributed to the qualified employee is 
are subject to reimbursement to the qualified business under this chapter.  "Qualified 
employee" does not include an employee who is shifted to a qualified business from an 
affiliated business.  The commissioner shall determine whether a shifting of employees has 
occurred.
For an employee in a call center in Aroostook County or Washington County, "qualified 
employee" means a new, full-time employee hired in this State by a qualified business, for 
whom a retirement program subject to the federal Employee Retirement Income Security 
Act of 1974, 29 United States Code, Chapter 18 and group health insurance are provided, 
and whose income derived from employment with the applicant, calculated on a weekly 
basis, is greater than the average weekly wage for the most recent available calendar year 
as derived from the quarterly census of employment and wages and provided annually by 
the Department of Labor, as long as Maine income tax withholding gross wages paid 
attributed to the qualified employee is are subject to reimbursement to the qualified 
business under this chapter.  "Qualified employee" does not include an employee who is 
shifted to a qualified business from an affiliated business.  The commissioner shall 
determine whether a shifting of employees has occurred.  The calculation of the average 
weekly wage must include data from the counties of Androscoggin, Aroostook, Franklin, 
Hancock, Kennebec, Knox, Lincoln, Oxford, Penobscot, Piscataquis, Sagadahoc, 
Somerset, Waldo and Washington.  Notwithstanding this subsection, with respect to a call 
center in Aroostook or Washington county, in a county in which the average annual 
unemployment rate at the time of certification for the most recent calendar year is greater 
than the state average for the same year, the wage threshold is 90% of the average weekly 
wage as derived from the quarterly census of employment and wages.  Notwithstanding 
this subsection, with respect to a call center in Aroostook or Washington county and upon 
approval of the commissioner, a qualified business located in a county in which the average 
annual unemployment rate at the time of certification for the most recent calendar year is 
greater than the state average for that same year qualifies for a phase-in of salary threshold 
requirements.  A qualified business under this provision must meet 70% of the average 
weekly wage as derived from the quarterly census of employment and wages in the first 
year of certification, 80% of the average weekly wage as derived from the quarterly census 
of employment and wages in the 2nd year of certification and 90% of the average weekly 
wage as derived from the quarterly census of employment and wages in all following years 
of certification.  Failure to meet any of these requirements results in automatic revocation 
of certification.
Sec. C-9.  Application. Those sections of this Part that amend the Maine Revised 
Statutes, Title 36, section 2521-A, first paragraph, section 2531, subsection 1 and section 
5147 apply to taxable years beginning on or after January 1, 2024. The section of this Part 
that amends Title 36, section 5231, subsection 1-A applies to taxable years beginning on 
or after January 1, 2023.
Sec. C-10.  Application; retroactivity. That section of this Part that repeals the 
Maine Revised Statutes, Title 36, section 5122, subsection 1, paragraph Z applies 
retroactively to taxable years beginning on or after January 1, 2020.  The section of this 
Part that amends Title 36, section 5122, subsection 2, paragraph HH applies retroactively 
to taxable years beginning on or after January 1, 2016. The section of this Part that amends 
Title 36, section 6753, subsection 12 applies retroactively to requests for reimbursement 
for calendar years beginning on or after January 1, 2022.
Sec. C-11.  Effective date. This Part takes effect 90 days following adjournment of 
the First Regular Session of the 131st Legislature.
PART D
Sec. D-1.  36 MRSA §6281, sub-§1, as enacted by PL 2021, c. 751, §1, is amended 
to read:
1.  Definitions.  As used in this chapter, unless the context otherwise indicates, the 
following terms have the following meanings.
A.  "Eligible homestead" means a homestead occupied by an eligible individual who is 
eligible for a homestead exemption under chapter 105, subchapter 4‑B for the property 
tax year during which an application for which the individual is requesting stabilization 
is made.
B.  "Eligible individual" means an individual who, on April 1 of the property tax year 
for which the individual is requesting stabilization:
(1)  Is 65 years of age or older; and
(2)  Is a permanent resident of the State as defined in section 681, subsection 4 who 
and has owned a homestead in the State for at least 10 years.
C.  "Homestead" has the same meaning as under section 681, subsection 2.
D.  "Stabilize" means to maintain the property tax billed to an eligible individual for 
the individual's eligible homestead at the amount billed for that homestead for the 
property tax year preceding the date of application for property tax year for which the 
individual is requesting stabilization.
Sec. D-2.  36 MRSA §6281, sub-§5, as enacted by PL 2021, c. 751, §1, is amended 
to read:
5.  State compensation.  A municipality that has stabilized property tax for an eligible 
individual under this chapter may recover from the State 100% of the amount by which the 
property tax assessed on the homestead of an eligible individual in the usual manner 
exceeds the stabilized amount of property tax billed under subsection 3.  A municipality 
claiming compensation under this subsection shall submit a claim to the bureau by 
November 1st of the year in which the property tax was stabilized on the annual return 
required by section 383.  The bureau shall review claims and determine the total amount to 
be paid to each municipality.  The bureau shall certify and the Treasurer of State shall pay 
the amount due to each municipality by January 15th of the year following the year in for 
which the claim for compensation was submitted or within 60 days of the date the claim 
was filed, whichever is later.
Sec. D-3.  36 MRSA §6281, sub-§6 is enacted to read:
6.  Audits; determinations of bureau.  The bureau may audit the records of a 
municipality to ensure compliance with this chapter. The bureau may independently review 
the records of a municipality to determine if applications under this section have been 
properly approved.  If the bureau determines that an application was improperly approved, 
the bureau shall ensure, either by setoff against other payments due the municipality or 
otherwise, that the municipality is not compensated for that application.  A municipality 
that is aggrieved by a determination of the bureau under this subsection may appeal 
pursuant to section 151.
PART E
Sec. E-1.  36 MRSA §4401, sub-§1-A, ¶A, as enacted by PL 2011, c. 285, §11, is 
amended to read:
A.  The purchaser submits the order for the sale by means of telephonic or other 
electronic method of voice transmission, the United States mail, the Internet or a 
delivery service; or
Sec. E-2.  36 MRSA §4401, sub-§1-B is enacted to read:
1-B.  Consumer.  "Consumer" means an individual who purchases, receives or 
possesses tobacco products for personal consumption and not for resale.
Sec. E-3.  36 MRSA §4401, sub-§1-C is enacted to read:
1-C.  Cost price.  "Cost price" means:
A.  In the case of a manufacturer, the price set for tobacco products or, if a price has 
not been set, the wholesale value of those products; or
B.  In the case of a distributor, a remote seller or a consumer:
(1)  The actual price paid for an item identified using a stock keeping unit that 
identifies the item using a unique code or identifier; or
(2)  If the actual price paid for an item is not available, the average of the actual 
price paid for the item over the 12 calendar months before January 1 of the year in 
which the remote sale occurs.
Sec. E-4.  36 MRSA §4401, sub-§2, as amended by PL 2011, c. 285, §12, is 
repealed and the following enacted in its place:
2.  Distributor.  "Distributor" means:
A.  A person engaged in the business of producing or manufacturing tobacco products 
in this State for sale in this State;
B.  A person engaged in the business of selling tobacco products in this State who 
brings, or causes to be brought, into this State tobacco products for sale to a retailer;
C.  A person with a place of business in this State engaged in the business of selling 
tobacco products in this State who brings, or causes to be brought, into this State 
tobacco products for sale to a person other than a retailer;
D.  A person engaged in the business of selling tobacco products who ships or 
transports tobacco products to retailers for sale in this State;
E.  A retailer who imports, receives or acquires, from a person other than a licensed 
distributor, tobacco products for sale within the State; or
F.  A person who makes delivery sales.
Sec. E-5.  36 MRSA §4401, sub-§4-A is enacted to read:
4-A.  Premium cigar.  "Premium cigar" has the same meaning as in Title 22, section 
1551, subsection 5.
Sec. E-6.  36 MRSA §4401, sub-§4-B is enacted to read:
4-B.  Remote sale.  "Remote sale" means any sale into this State of premium cigars or 
pipe tobacco to a consumer when:
A.  The consumer submits the order for the sale by means of a telephone or other 
method of voice transmission, United States mail or the Internet or other online service 
or the remote seller is otherwise not in the physical presence of the buyer when the 
request for purchase or order is made; or
B.  The premium cigars or pipe tobacco is delivered to the buyer by common carrier, 
private delivery service or other method of remote delivery or the remote seller is not 
in the physical presence of the buyer when the buyer obtains possession of the cigars 
or pipe tobacco.
Sec. E-7.  36 MRSA §4401, sub-§4-C is enacted to read:
4-C.  Remote seller.  "Remote seller" means a person who makes a remote sale when:
A.  The person's gross sales from sales of premium cigars or pipe tobacco into this State 
in the previous calendar year or current calendar year exceeds $100,000; or
B.  The person made sales of premium cigars or pipe tobacco for delivery into this State 
in at least 200 separate transactions in the previous calendar year or current calendar 
year.
Sec. E-8.  36 MRSA §4401, sub-§6, as enacted by PL 1985, c. 783, §16, is repealed.
Sec. E-9.  36 MRSA §4401, sub-§9, as amended by PL 2019, c. 607, Pt. B, §7 and 
PL 2021, c. 669, §5, is further amended to read:
9.  Tobacco products.  "Tobacco products" means cigars, including premium cigars; 
cheroots; stogies; electronic smoking devices and liquids used in electronic smoking 
devices whether or not they contain nicotine; periques, granulated, plug cut, crimp cut, 
ready rubbed and other smoking tobacco; snuff; snuff flour; snus; cavendish; plug and twist 
tobacco; finecut and other chewing tobaccos; shorts; refuse scraps, clippings, cuttings and 
sweepings of tobacco; and other kinds and forms of tobacco, prepared in such manner as 
to be intended for human consumption or as is likely to be consumed, whether smoked, 
heated, chewed, absorbed, dissolved, inhaled or ingested by any other means.  "Tobacco 
products" does not include:
A.  Products that are subject to the tax provided by chapter 703;
B.  Drugs, devices or combination products authorized for sale by the United States 
Department of Health and Human Services, Food and Drug Administration, as those 
terms are defined in the Federal Food, Drug, and Cosmetic Act;
C.  Any product that contains adult use cannabis subject to tax under chapter 723; or
D.  Any product that contains cannabis or cannabis products subject to control under 
Title 22, chapter 558‑C.
Sec. E-10.  36 MRSA §4402, sub-§1, as amended by PL 2019, c. 379, Pt. B, §15, 
is further amended to read:
1.  Generally.  Every distributor or remote seller shall obtain a license from the State 
Tax Assessor before engaging in business.  A retailer required to be licensed as a distributor 
or remote seller pursuant to this chapter must also that is required to hold a current retail 
tobacco license issued under Title 22, chapter 262‑A, subchapter 1 must hold that license 
as a condition for licensure under this chapter.  A distributor's license must be prominently 
displayed on the premises of the business covered by the license and A license issued 
pursuant to this section may not be transferred to any other person.  A distributor's license 
issued pursuant to this section is not a license within the meaning of that term in the Maine 
Administrative Procedure Act.
Sec. E-11.  36 MRSA §4402, sub-§2, as enacted by PL 2005, c. 627, §7, is amended 
to read:
2.  Applications; forms.  Every license application must be made on a form prescribed 
by the assessor and must state the name and address of the applicant, the address of the 
applicant's principal place of business and such other information as the assessor may 
require for the proper administration of this chapter.   A person outside the State who ships 
or transports tobacco products to a retailer in this State must make application as a 
distributor and be granted by the assessor a license subject to all the provisions of this 
chapter and agree, upon applying for a license, shall agree to submit that person's books, 
accounts and records to examination by the bureau during reasonable business hours and 
to accept service of process by mail when service is made in any proceeding involving 
enforcement of this chapter.
Sec. E-12.  36 MRSA §4402, sub-§4, as enacted by PL 2005, c. 627, §7, is amended 
to read:
4.  Penalties.  The following penalties apply to a violation of this section.
A.  A distributor or remote seller that imports into this State any tobacco product 
without holding a distributor's license issued by the assessor pursuant to this section 
commits a civil violation for which a fine of not less than $250 and not more than $500 
must be adjudged.
B.  A distributor or remote seller that violates paragraph A after having been previously 
adjudicated as violating paragraph A commits a civil violation for which a fine of not 
less than $500 and not more than $1,000 must be adjudged for each subsequent 
violation.
C.  A distributor or remote seller that sells at wholesale or retail, offers for sale at 
wholesale or retail or possesses with intent to sell at wholesale or retail any tobacco 
product without holding a distributor's license issued by the assessor pursuant to this 
section commits a civil violation for which a fine of not less than $250 and not more 
than $500 must be adjudged.
D.  A distributor or remote seller that violates paragraph C after having been previously 
adjudicated as violating paragraph C commits a civil violation for which a fine of not 
less than $500 and not more than $1,000 must be adjudged for each subsequent 
violation.
Sec. E-13.  36 MRSA §4402, sub-§5, as amended by PL 2019, c. 379, Pt. B, §17, 
is further amended to read:
5.  Surrender, revocation or suspension.  When the business with respect to which a 
license was issued pursuant to this section is sold or ceases to do business in this State, the 
holder of the license shall immediately surrender it to the assessor.  The assessor may 
revoke or suspend the license of any distributor or remote seller for failure to comply with 
any provision of this chapter or if the person no longer imports or sells tobacco products.  
A license that has been revoked or suspended pursuant to this subsection must be 
immediately surrendered to the assessor. A person aggrieved by a revocation or suspension 
may request reconsideration as provided in section 151.
Sec. E-14.  36 MRSA §4402, sub-§6, as amended by PL 2019, c. 379, Pt. B, §18, 
is further amended to read:
6.  License directory maintained.  The assessor shall maintain a directory of 
distributors and remote sellers licensed pursuant to this chapter.  The assessor shall update 
the directory as necessary, but not less than annually.  Notwithstanding the provisions of 
section 191, the list must be available to the public and must be posted on a publicly 
accessible website maintained by the assessor.  The directory must be mailed annually to 
all retailers at or near the time of renewal of a retail tobacco license issued under Title 22, 
chapter 262‑A, subchapter 1.
Sec. E-15.  36 MRSA §4402, sub-§7, as amended by PL 2019, c. 379, Pt. B, §18, 
is further amended to read:
7.  Notification.  A distributor or remote seller that has its license suspended or 
revoked, within 10 business days of the suspension or revocation, shall inform in writing 
all its accounts in this State that it no longer holds a valid license under this section.  
Notwithstanding the provisions of section 191, the assessor may publish the names of 
distributors and remote sellers that have had a license suspended or revoked.
Sec. E-16.  36 MRSA §4403, sub-§2, as amended by PL 2019, c. 530, Pt. A, §4, is 
further amended to read:
2.  Other tobacco.  A tax is imposed on cigars, pipe tobacco and other tobacco intended 
for smoking at the rate of 20% of the wholesale sales price beginning October 1, 2005.  
Beginning January 2, 2020, a tax is imposed on all tobacco products, other than those 
subject to tax under subsection 1, at the rate of 43% of the wholesale sales price. Beginning 
January 1, 2024, a tax is imposed on all tobacco products, other than those subject to tax 
under subsection 1, at the rate of 43% of the cost price. Beginning January 2, 2020, the tax 
rate imposed pursuant to this subsection is subject to adjustment pursuant to subsection 5.
Sec. E-17.  36 MRSA §4403, sub-§3, as amended by PL 2005, c. 627, §9, is further 
amended to read:
3.  Imposition.  The tax is imposed at the time the distributor or remote seller brings 
or causes to be brought into this State tobacco products that are for sale to consumers or to 
retailers or for use or at the time tobacco products are manufactured or fabricated in this 
State for sale in this State.
Sec. E-18.  36 MRSA §4403, sub-§4, as enacted by PL 1985, c. 783, §16, is 
repealed.
Sec. E-19.  36 MRSA §4403-A is enacted to read:
§4403-A.  Exemptions from the tobacco tax
1.  Exempt items.  The tax imposed on tobacco products does not apply to the 
following products:
A.  Products that are subject to the tax provided by chapter 703; or
B.  Drugs, devices or combination products authorized for sale by the United States 
Department of Health and Human Services, Food and Drug Administration, as those 
terms are defined in the Federal Food, Drug and Cosmetic Act.
2.  Tobacco products containing cannabis.  The tax imposed on tobacco products 
does not apply to the sale of an electronic smoking device or other tobacco product 
containing adult use cannabis subject to tax under chapter 723 or an electronic smoking 
device or other tobacco product containing cannabis or cannabis products subject to control 
under Title 22, chapter 558-C.
3.  Exportation.  The tax imposed on tobacco products does not apply to those products 
exported from this State or to any tobacco products that under laws of the United States 
may not be subject to taxation by this State.
Sec. E-20.  36 MRSA §4404, as amended by PL 2019, c. 379, Pt. B, §§19 and 20, 
is repealed and the following enacted in its place:
§4404.  Returns; payment of tax and penalty
1.  Monthly returns.  Every distributor or remote seller subject to the licensing 
requirement of section 4402 shall file, on or before the last day of each month, a return on 
a form prescribed by the assessor together with payment of the tax due under this chapter.  
The return must report all tobacco products held, purchased, manufactured, brought in or 
caused to be brought in from outside the State or shipped or transported to retailers or 
consumers within the State during the preceding calendar month.
2.  Exports.  The return must include further information as the assessor may prescribe 
and must show a credit for any tobacco products exported on which the tax was previously 
paid as provided in section 4403-A, subsection 3.  The distributor or remote seller shall 
maintain records to substantiate the credit.
3.  Tax previously paid on unsalable items.  Tax previously paid on tobacco products 
that are returned to a manufacturer, a distributor or a remote seller because the product has 
become unfit for use, sale or consumption and on tobacco products that are returned to a 
distributor or remote seller that are subsequently destroyed by the distributor or remote 
seller may be taken as a credit on a subsequent return.  The assessor may either witness the 
destruction of the product or may accept another form of proof that the product has been 
destroyed by the distributor or remote seller or returned to the manufacturer.
4.  Person not a distributor or remote seller required to file.  A person who is not a 
distributor or remote seller licensed pursuant to this chapter who imports, receives or 
otherwise acquires tobacco products for use or consumption in the State from a person 
other than a licensed distributor or licensed remote seller shall file, on or before the last day 
of the month following each month in which tobacco products were acquired, a return on 
a form prescribed by the assessor together with payment of the tax imposed by this chapter 
at the rate provided in section 4403.  The return must report the quantity of tobacco products 
imported, received or otherwise acquired from a person other than a licensed distributor, 
licensed remote seller or retailer during the previous calendar month and additional 
information the assessor may require.
Sec. E-21.  36 MRSA §4404-A, first ¶, as enacted by PL 2005, c. 627, §11, is 
amended to read:
Violation of this section by a person other than a retailer is a strict liability crime as 
defined in Title 17‑A, section 34, subsection 4‑A.  It is an affirmative defense to a 
prosecution under this section that a retailer, alleged to have imported tobacco products or 
caused tobacco products to be imported, reasonably relied on licensing information 
annually mailed to the retailer provided by the assessor pursuant to section 4402, subsection 
that listed the company from which the retailer obtained tobacco products as being a 
licensed distributor or licensed remote seller.
Sec. E-22.  36 MRSA §4404-A, sub-§3, as amended by PL 2007, c. 438, §103, is 
further amended to read:
3.  Exception for personal use.  A person who is not a licensed distributor or licensed 
remote seller may:
A.  Import or transport tobacco products other than cigars into this State and transport 
those tobacco products from place to place within this State for personal use in a 
quantity not greater than one pound; or
B.  Import or transport cigars into this State and transport those cigars from place to 
place within this State for personal use in a quantity of no more than 125 cigars.
Untaxed tobacco products imported or transported into this State in any quantity are subject 
to the tax imposed by section 4403.
Sec. E-23.  36 MRSA §4404-B, as enacted by PL 2005, c. 627, §11, is amended to 
read:
§4404-B.  Sales of tobacco products in contravention of law
1.  Tobacco products.  A distributor or remote seller may not offer for sale or sell 
tobacco products if the package containing the tobacco products:
A.  Is subject to and does not comply with 15 United States Code, Section 4401, et 
seq., for the placement of labels, warnings or any other information for a package of 
tobacco products to be sold within the United States and 26 United States Code, Section 
5723;
B.  Is labeled "For Export Only," "U.S. Tax Exempt," "For Use Outside U.S." or with 
other wording indicating that the manufacturer did not intend that the product be sold 
in the United States;
C.  Has been altered by adding or deleting wording, labels or warnings described in 
paragraphs A and B;
D.  Has been imported into the United States in violation of 26 United States Code, 
Section 5754; or
E.  In any way violates federal trademark or copyright laws.
2.  Shipment only to licensed retailers.  A distributor may not sell or offer to sell 
tobacco products to a retailer unless the retailer has provided documentation to the 
distributor that the retailer holds a current retail tobacco license issued under Title 22, 
section 1551‑A.
3.  Deceptive practice.  A distributor or remote seller that sells tobacco products 
described in subsection 1, with or without having paid the appropriate tax, commits an 
unfair or deceptive act or practice under the Maine Unfair Trade Practices Act.
4.  Penalties.  The following penalties apply to violations of this section.
A.  A distributor or remote seller that violates this section commits a Class E crime.
B.  A distributor or remote seller that violates this section when the distributor has after 
having one or more prior convictions for a violation of this section commits a Class D 
crime. Title 17‑A, section 9‑A governs the use of prior convictions when determining 
a sentence.
Violation of this section is a strict liability crime as defined in Title 17‑A, section 34, 
subsection 4‑A.
Sec. E-24.  36 MRSA §4404-C, sub-§2, as enacted by PL 2005, c. 627, §11, is 
amended to read:
2.  Exceptions.  The following tobacco products are not subject to seizure:
A.  Tobacco products in the possession of a licensed distributor, remote seller or 
manufacturer for which the tax imposed by this chapter has not been paid;
B.  Tobacco products for which the tax imposed by this chapter has not been paid that 
are in the course of transit from without the State and are:
(1)  Consigned to a licensed distributor or remote seller; or
(2)  In transit by common carrier or contract carrier.; and
C.  Tobacco products in a quantity of no more than 125 cigars or one pound of other 
tobacco product in the possession of an individual who is not a licensed distributor or 
remote seller for which the tax imposed by this chapter has not been paid.
Notwithstanding paragraphs A, B and C, tobacco products described in section 4404‑B, 
subsection 1 are subject to seizure under the process described in subsection 3 unless the 
distributor or remote seller can prove the tobacco products are to be exported out of the 
country.
Sec. E-25.  Application. This Part applies to tobacco products brought into this State 
or manufactured or fabricated in this State on or after January 1, 2024.
Sec. E-26.  Effective date. This Part takes effect January 1, 2024.
PART F
Sec. F-1.  36 MRSA §191, sub-§2, ¶SSS is enacted to read:
SSS.  The disclosure to the Treasurer of State when necessary for the performance of 
the Treasurer of State's official duties as administrator under Title 33, chapter 45 of the 
current mailing address for a taxpayer for purposes of returning unclaimed or 
abandoned property to the rightful owner or heir, except as prohibited by federal law.
Emergency clause.  In view of the emergency cited in the preamble, this legislation 
takes effect when approved, except as otherwise indicated.
SUMMARY
Part A makes changes to the sales tax law. Part A:
1. Requires a marketplace facilitator to collect recycling assistance fees on sales that 
the marketplace facilitator facilitates; and
2. Adds the definition of "low-income" as used by the sales tax exemption for sales to 
a nonprofit housing development organization in the Maine Revised Statutes, Title 36, 
section 1760, subsection 72 to the corresponding exemption under the service provider tax.
Part B makes changes to the property tax law. Part B:
1. Simplifies eligibility for the property tax exemption for veterans who served in a 
federally recognized war period or received an expeditionary medal by removing the 
distinction between different expeditionary medals; 
2. Simplifies and broadens eligibility for the property tax exemption for veterans with 
specially adapted housing units to include all veterans who receive grants for specially 
adapted housing;
3. Adjusts the personal property factor calculation used to determine state business 
equipment tax exemption reimbursement rates to exclude business personal property 
exempt from property taxation for reasons other than the business equipment tax 
exemption;
4. Clarifies the 3 approaches to valuation;
5. Allows certain restricted property to be considered comparable to property not so 
restricted for valuation purposes if the comparison is adjusted for the restriction; and
6. Changes the payment due date for the homestead property tax deferral program for 
senior citizens from April 30th of the calendar year following the year in which the property 
exited the program to 12 months after the property exited the program and changes the date 
by which an extension must be requested from August 15th of the calendar year following 
the year in which the property exited the program upon a death to 12 months after the 
property exited the program.
Part C makes changes to the income tax law. Part C:
1.  Provides that each required estimated tax payment for nonadmitted insurance 
premiums be based on contracts written during the estimated tax period;
2. Clarifies that the nonadmitted insurance premiums tax is based on premiums on 
contracts written by insurers, rather than on premiums paid to insurers;
3. Retroactively repeals the Maine modification related to the federal exclusion of 
benefits for volunteer firefighters and emergency responders;
4. Eliminates a duplication of benefits by requiring that the military survivor benefits 
subtraction modification be reduced by the amount of those benefits claimed as a pension 
deduction under the Maine Revised Statutes, Title 36, section 5122, subsection 2, 
paragraph M-2;
5. Provides that the interest associated with an installment sale of property for which 
an election is made by a nonresident individual taxpayer to pay the Maine tax on the gain 
in the year of the sale or in a subsequent year is excluded from Maine taxable income in 
the year of the election and any year subsequent to the election;
6. Removes the credit for certain homestead modifications for taxable years beginning 
on or after January 1, 2024, but allows taxpayers to carry forward unused credit amounts 
for up to 4 years following the first year of eligibility. It also makes an additional technical 
change;
7. Establishes the extended due dates for filing income tax returns of taxable 
corporations and franchise tax returns of financial institutions as 30 days following the 
extended due date for filing the related federal income tax return. This change applies to 
taxable years beginning on or after January 1, 2024; and
8. Replaces a reference to "Maine income tax withholding" in the employment tax 
increment financing program with a reference to "gross wages paid" in order to reflect a 
recent change in the program to base the benefit on gross wages paid rather than on income 
tax withholding. 
Part D makes changes to the property tax stabilization for senior citizens program. Part 
D:
1. Clarifies the property tax year for which individuals request stabilization;
2. Clarifies the form municipalities must use to apply for reimbursement; and
3. Authorizes the Department of Administrative and Financial Services, Maine 
Revenue Services to audit municipal applications for reimbursement and provides for 
municipal appeal rights. These changes take effect upon enactment.
Part E makes changes to the tobacco tax law.  Part E:
1. Enacts a definition of "remote seller" to mean a seller of premium cigars and pipe 
tobacco selling directly to consumers located in the State;
2. Enacts a definition of "remote sale" to establish clearly when an economic nexus 
exists for purposes of regulation and taxation of distributors and remote sellers of tobacco 
products located outside of the State; and
3. Makes other technical changes throughout to ensure clarity and consistency 
regarding the imposition of the tax and the many different types of distributors who bring 
or cause to be brought tobacco products into this State for sale.
Part F allows the disclosure of a taxpayer's current mailing address to the Treasurer of 
State for purposes of returning unclaimed or abandoned property.