An Act to Eliminate the Property Tax on Business Equipment With
Maine Legislature, Session 132, LD 1603
Committee: Taxation
Sponsors: MARTIN, SOBOLESKI
Amends: 36 MRSA §655, 36 MRSA §6651

Legislative Document
No. 1603
S.P. 640
In Senate, April 10, 2025
An Act to Eliminate the Property Tax on Business Equipment With 
a Value of No More Than $50,000
Reference to the Committee on Taxation suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator MARTIN of Oxford.
Cosponsored by Representative SOBOLESKI of Phillips and
Senators: BICKFORD of Androscoggin, GUERIN of Penobscot, LIBBY of Cumberland, 
MOORE of Washington, Representative: BOYER of Poland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §655, sub-§1, ¶U, as amended by PL 2023, c. 682, §2, is further 
amended by amending the 2nd blocked paragraph to read:
This paragraph applies to solar energy equipment for property tax years beginning 
before April 1, 2025; and
Sec. 2.  36 MRSA §655, sub-§1, ¶V, as enacted by PL 2023, c. 682, §3, is amended 
by amending the first blocked paragraph to read:
On or before April 1st of the first property tax year for which a taxpayer claims an 
exemption under this paragraph, the taxpayer claiming the exemption shall file a report 
with the assessor.  The report must identify the property for which the exemption is 
claimed and must be made on a form prescribed by the State Tax Assessor or a 
substitute form approved by the State Tax Assessor.  The State Tax Assessor shall 
furnish copies of the form to each municipality in the State and make the forms 
available to taxpayers.; and
Sec. 3.  36 MRSA §655, sub-§1, ¶W is enacted to read:
W.  Business equipment with a value of no more than $50,000.  For purposes of this 
paragraph, "business equipment" means tangible personal property that is used or held 
for use exclusively for a business purpose by the person in possession of it or, in the 
case of construction in progress or inventory parts, is intended to be used exclusively 
for a business purpose by the person who will possess that property and includes, 
without limitation, repair parts; replacement parts; replacement equipment; additions, 
accessions and accessories to other personal property; inventory parts; office furniture, 
including lamps and lighting fixtures; and gambling machines or devices, including 
associated equipment such as computer equipment, equipment used in the playing 
phases of lottery schemes and repair and replacement parts of a gambling machine or 
device. "Business equipment" does not include property to the extent it is eligible for 
exemption from property tax under any other provision of law.
Sec. 4.  36 MRSA §655, as amended by PL 2023, c. 682, §§1 to 3, is further amended 
by enacting at the end a new paragraph to read:
Notwithstanding any provision of law to the contrary, a political subdivision of the 
State may not impose a tax or fee on business equipment with a value of no more than 
$50,000.
Sec. 5.  36 MRSA §6651, sub-§1, as repealed and replaced by PL 2007, c. 627, 
§95, is amended to read:
1.  Eligible property.  "Eligible property" means qualified business property first 
placed in service in the State, or constituting construction in progress commenced in the 
State, after April 1, 1995 but does not include property that is eligible business equipment 
as defined in section 691 exempt from taxation pursuant to section 655, subsection 1, 
paragraph W. "Eligible property" includes, without limitation, repair parts, replacement 
parts, additions, accessions and accessories to other qualified business property placed in 
service on or before April 1, 1995 if the part, addition, accession or accessory is first placed 
in service, or constitutes construction in progress, in the State after April 1, 1995, unless 
that property is eligible business equipment as defined in section 691 exempt from taxation 
pursuant to section 655, subsection 1, paragraph W. "Eligible property" includes used 
qualified business property if the qualified business property was first placed in service in 
the State, or constituted construction in progress commenced in the State, after April 1, 
1995 but does not include property that is eligible business equipment as defined in section 
exempt from taxation pursuant to section 655, subsection 1, paragraph W. "Eligible 
property" also includes inventory parts.
Sec. 6. Guidance and assistance.  The Department of Administrative and Financial 
Services, Bureau of Revenue Services shall develop and provide guidance to municipalities 
and businesses regarding the elimination of the property tax on business equipment with a 
value of $50,000 or less.  The bureau shall provide assistance to a municipality or business 
that requests assistance in complying with this Act.
Sec. 7.  Application. This Act applies to property tax years beginning on or after 
April 1, 2026.
SUMMARY
This bill exempts all business equipment with a value of no more than $50,000 from 
the personal property tax and prohibits a political subdivision of the State from imposing a 
tax on such business equipment. The bill applies to property tax years beginning on or after 
April 1, 2026.  The bill also requires the Department of Administrative and Financial 
Services, Bureau of Revenue Services to develop and provide guidance to municipalities 
and businesses regarding compliance with the elimination of the property tax on business 
equipment with a value of no more than $50,000.