An Act to Enact the
Maine Legislature, Session 132, LD 0785
Committee Amendment CA_A_S694 (Senate)
Amends: 3 MRSA §1, 3 MRSA §2, 36 MRSA §5102, 36 MRSA §1760, 36 MRSA §1815, 36 MRSA §651

COMMITTEE AMENDMENT "ft " to S.P. 344, L.D. 785, "An Act to Enact the
Remaining Recommendations of the Task Force on Changes to the Maine Indian Claims
Settlement Implementing Act"
Amend the bill by striking out the title and substituting the following:
*An Act to Amend Certain Tax Laws Regarding the Wabanaki Nations'
Amend the bill by striking out everything after the enacting clause and inserting the
following:
'PART A
Sec. A-l. 3 MRSA §1,2nd % as amended by PL 2009, c. 636, Pt. A, § 1, is further
amended to read:
The Tribal Clerk of the Penobscot Indian Nation shall, on or before the day preceding
the meeting of the Legislature, furnish to the Clerk of the preceding House of
Representatives a certification, under the seal of the Nation, of the name and residence of
the Representative-elect of the Penobscot Indian Nation to the Legislature, The Tribal
Clerk of the Passamaquoddy Tribe of the reservation from which the Representative-elect
of that tribe has been chosen shall, on or before the day preceding the meeting of the
Legislature, furnish the Clerk of the preceding House of Representatives a certification of
the name and residence of the Representative-elect of the Passamaquoddy Tribe to the
Legislature. Beginning with the 126th Legislature, the Tribal Clerk of the Houlton Band
of Maliseet Indians shall, on or before the day preceding the meeting of the Legislature,
furnish to the Clerk of the preceding House of Representatives a certification of the name
and residence of the Representative-elect of the Houlton Band of Maliseet Indians to the
Legislature, Beginningwith the 133rd Legislature, the Tribal Clerk of the Mi'kmaa Nation
shall, on or before the day precedine the meeting of the Legislature, furnish to the Clerk of
the precedina House of Representatives a certification, under the seal of the Nation, of the
name and residence of the Representative-elect of the Mi'kmaq Nation to the Legislature,
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT " f\ " (o S.P, 344, L.D. 785 (5 (0cl<f
Sec. A-2. 3 MRSA §2,9th % as amended by PL 2023, c. 2, §4, is fiirther amended
to read:
The member of the Penobscot Indian Nation, the member of the Passamaquoddy Indian
Tribe and, beginning with the Second Regular Seosion of the 125th Legislature, the member
of the Houlton Band of Maliseet Indians and. beainmne with the First Regular Session of
the 133rd Legislature, the member of the Mi'kmaq Nation elected to represent their tribes
at the Legislature are entitled to receive a salary equal to the salary of members of the
Senate and the House of Representatives, including a cost-of-living adjustment, for each
regular session and an allowance for constituent service and allowances for travel-related
expenses, which are housing, meals, mileage and tolls, to the same extent as members of
the House of Representatives for attendance at each legislative session or authorized
committee meeting. For the duration of any special session of the Legislature, they are
entitled to receive the same per diem payment and allowances, including travel-related
expenses, which are housing, meals, mileage and tolls, as any member of the Senate and
House of Representatives.
PARTB
Sec. B-l. 36 MRSA §5102, sub-§5-B is enacted to read:
S-B. Tribal member comuensation. "Tribal member compensation" means
compensation received bv an itidividual who is a tribal member, and by an estate of a
decedent who at the time of death was a tribal member. for personal services performed as
an employee of the Passamaauoddv Tribe, the Penobscot Nation, the Houlton Band of
Maliseet Indians or the Mi'kmaa Nation. For purposes of this subsection. "comDensation"
means all taxable remuneration and benefits for services performed by the individual as an
employee of the Passamaauoddv Tribe, the Penobscot Nation, the Houlton Band of
Maliscet Indians or the Mi'kmaa Nation, includinc; the cash value of any taxable
remuneration and benefits paid in any medium other than cash,
See. B"2. 36 MR8A §5122, sub-§2, ^[BBB is enacted to read:
BBB. To the extent included in federal adjusted gross income and to the extent
otherwise subject to Maine income tax. an amount equal to tribal member
compensation, notwithstandina where the tribal member resides,
See. B-3. Application. This Part applies to tax years beginning on or after January
1,2027.
PART C
See. C-l. 36 MRSA §1760, sub-§113, as amended by PL 2025,c. 271, Pt. B, §2
and affected by §5, is further amended to read:
113. Tribal members. Sales of new manufactured housing for installation on tribal
land and sales to a tribal member that are sales sourced to tribal land, except that, if the
8 property or service is used by the purchaser, including any lessee, primarily outside of tribal
land, the purchaser is liable for use tax based on the original sale price, unless otherwise
exempt under this Part.
For purposes of this subsection:
Page2-132LR023S(02)
COMMITTEE AMENDMENT
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COMMITTEE AMENDMENT "^ " to S.P. 344, L.D. 785
A. "Primarily" means more than 50% of that period of time that begins on the date on
which the property or service is first placed in service by the purchaser and ends one
year from that date or at the time that the property or service is sold, scrapped,
destroyed or otherwise permanently removed from service, whichever occurs first; aad
B. "Sales sourced to tribal land" means sales sourced pursuant to section 1819 to a
location on tribal land. In addition, sales of motor vehicles other than those that are
being leased for a period of loss than one year to u tribal member are sales sourocd to
tribal land if the-vehicle is intended to be driven or transported to tribal land
immediatoly upon receipt of the vehiole. as well as:
fl) Sales of motor vehicles other than those that are beine leased for a period of
less than one year to a tribal member. if the vehicle is intended to be driven or
transported to tribal land immediately upon recsipt of the vehicleLand
(2} Sales of new manufactured housine to a tribal member, if the new
manufactured housing is intended to be installed on tribal land immediately upon
receipt or delivery; and
C. "Sales of new manufactured housine for installation on tribal land" means_ sales to
a construction contractor or subcontractor of new manufactured housing that is
intended to be physically incorporated in. and become a permanent oart of real Dropertv
located on. tribal land for sale to a tribal member or to the PassamaauoddvJTribe. the
Penobscot Nation, the Houlton Band of Maliseet Indians or the Mi'kmaa Nation.
See. C-2. Application. This Part applies to sales occurring on or after January 1,
2027.
PART D
See. D-l. 36 MRSA §1760, sub-§114, as amended by PL 2025, c. 271, Pt. B, §3
and affected by §5, is further amended to read;
114. Tribal entities. Sales to a tribal entity that are sales sourced to tribal land,except
that, if the property or service is used by the purchaser, including any lessee, primarily
outside of tribal land, the purchaser is liable for use tax based on the original sale price,
unless otherwise exempt under this Part.
For purposes of this subsection:
A. "Primarily" means more than 50% of that period of time that begins on the date on
which the property or service is first placed in service by the purchaser and ends one
year fi-om that date or at the time that the property or service is sold, scrapped,
destroyed or otherwise permanently removed from service, whichever occurs first; ftftd
B, "Sales sourced to tribal land" means sales sourced pursuant to section 1819 to a
location on tribal land or to a location on soecifictriballv owned fee land identified in
rules adopted pursuant to paragraph C. In addition, sales of motor vehicles other than
those that are being leased for a period of less than one year to a tribal entity are sales
sourced to tribal land if the vehicle is intended to be driven or transported to tribal land
immediately upon receipt of the vehicle-; and
C. The bureau shall, by rule. identify the triballv owned fee lands eliaible for the sales
tax exemption set forth in this subsection and the sales tax transfer in section 1815 in
accordance with the followine requirements.
COMMITTEE AMENDMENT
KUQ
COMMITTEE AMENDMENT"^ " to S.P. 344, L.D. 785 (cy^u{
CU The Passamaauoddv Tribe, the Penobscot Nation, the Houlton Band of
Maliseet Indians and the Mi'kmaa Nation, referred to in this Daraaraoh as
"Wabanaki Nation." may each file a written request with the bureau by August 1st
of each year that the sales tax exemption in this subsection and the sales tax transfer
in section 1815 aoulv. effective January 1 st of the followmK year. at any one time
to no morethan one parcel of land or 2 abuttine parcels of land that are jointly used
to operate a business. To qualify for the exemption, the parcel or parcels of land
must be:
(a) Owned in fee by the reauestina Wabanaki Nation or a tribal entity owned
bv the reauestine Wabanaki Nation, a tribal member or members of the
reauestine Wabanaki Nation or some combination thereof:
fb) Used bv the reauestins Wabanaki Nation or tribal entity to oDerate a
business; and
{c) Located within Aroostook County. Hancock County. Franklin County.
Penobscot County. Piscataauis Counh^. Somerset County. Oxford County or
Washinaton County.
(2) If a parcel or parcels of land identified bv rule as elieible for the sales tax
exemption set forth in this subsection and the sales tax transfer in section 1815
cease to meet the requirements of suboaraaraoh 01 or if a Wabanaki Nation elects
to change that Wabanaki Nation's parcel or parcels of land identified to the bureau
for purposes of this subsection and section 1815. the reauestina Wabanaki Nation
shall notify the bureau and may submit a new request under subDaraeraph (I) that
the sales tax exemption set forth in this subsection and the sales tax transfer in
section 1815 apply to a different parcel or parcels of land.
(3) If the parcel or parcels of land that a Wabanaki Nation requests to be subject
to the sales tax exemption in this subsection and the sales tax transfer in section
1815 meet the requirements of suboaraaraph (l\ the bureau shall adopt rules
identifvina the parcel or parcels of land as triballv owned fee lands elieible for the
sales tax exemption set forth in this subsection and the sales tax transfer in section
1815.
Rules adopted pursuant to this oaraeraph are routine technical mles pursuant to Title
5. chapter 375. subchaoter 2-A.
See. D-2. 36 MRSA §1815, sub-§2, as amended by PL 2025,c. 470, Pt. D, §3 and
affected by §6, is further amended to read:
2. Monthly transfer. By the 20th day of each month, the assessor shall notify the
State Controller and the Treasurer of State of the amount of revenue attributable to the tax
collected under this chapter in the previous month on sales occurring on the
Passamaquoddy Indian territory, the Penobscot Indian territory, the Houlton Band Trust
Land and the Mi'kmaq Nation Trust Land, respectively, reduced by the transfer to the Local
Government Fund required by Title 30-A, section 5681. When notified by the assessor,
the State Controller shall transfer those amounts to the Passamaquoddy fund, the Penobscot
fund, the Maliseet fund and the Mi'kmaq fund, respectively.
Page4-132LR0235(02)
COMMITTEE AMENDMENT
ROS
COMMITTEE AMENDMENT " ]\ " to S.P. 344, L,D. 785 (<y (sG\ ^
For purposes of this subsection, a sale occurs on the Passamaquoddy Indian territory, the
Penobscot Indian territory, tlie Houlton Band Trust Land or the Mi'kmaq Nation Trust Land
if:
A, The business location of the seller from which the purchase is made is on
Passamaquoddy Indian territory, Penobscot Indian territory, Houlton Band Trust Land
or Mi'kmaq Nation Tmst Land, respectively, or on the Passamaauoddv Tribe's, the
Penobscot Nation's, the Houlton Band of Maliseet Indian's or the Mi'kmaa Nation's
respective triballv owned fee land identified in rules adopted pursuant to section 1760.
subsection 114. paragraph C; and
B. The tangible personal property or taxable service is received by the purchaser also
on Passamaquoddy Indian territory, Penobscot Indian territory, Houlton Band Trust
Land or Mi'kmaq Nation Trust Land, respectively, or on the Passamaauoddv Tribe's.
the Penobscot Nation's, the Houlton Band ofMaliseet Indian's or the Mi'kmaeLNation's
respective triballv owned fee land identified in rules adopted pursuant to section 1760.
subsection 114. paragraph C, For purposes of this paragraph, "received" has the same
meaning as in section 1819.
PARTE
Sec. E-l. 36 MRSA §651, sub-§l» ^F, as corrected by RR 2013, c. 1, §51, is
amended to read;
F, All airports and landing fields and the structures erected thereon or contained therein
of public municipal corporations whether located within or without the limits of such
public municipal corporations. Any structures or land contained within such airport not
used for airport or aeronautical purposes shaU may not be entitled to this exemption.
Any public municipal corporation which that is required to pay taxes to another such
corporation under this paragraph with respect to any airport or landing field shaft must
be reimbursed by the county wherein the airport is situated; wad
Sec. E-2. 36 MRSA §651, sub-§l, ^G, as enacted by PL 1967, c, 115, is amended
to read:
0. The pipes, fixtures, conduits, buildings, pumping stations and other facilities of a
public municipal corporation used for sewage disposal, if located outside the limits of
such public municipal corporationT: and
See. E-3. 36 MRSA §651, sub-§l, ^H is enacted to read:
H, For property tax years beBinnins on or after April 1. 2027. the oropertv of a
federally recosnized Indian tribe in the State if the property is used for eovernmenta!
or public mirooses: the Drooertv is located within 50 miles of the federally recoanized
Indian tribe's tribal land: and there is a oendine application to have the United States
Secretary of the Interior acquire the property in trust for the benefit of the federally
recoenized Indian tribe pursuant to the federal Maine Indian Claims Settlement Act of
1980. Public Law 96-420. federal Houlton Band of Maliseet Indians Supplementary
Claims Settlement Act of 1986. Public Law 99-566 or the federal Aroostook Band of
Micmacs Settlement Act. Public Law 102-171.
PART F
COMMITTEE AMENDMENT
ROS
COMMITTEE AMENDMENT " Q " to S,P. 344, L,D, 785
Sec. F-l. Appropriations and allocations. The following appropriations and
allocations are made.
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF
Revenue Services, Bureau of 0002
Initiative: Provides one-time funding for administrative expenses, including the costs of
adding a new line to the Municipal Valuation Return and associated programming and
testing.
GENERAL FUND 2025-26 2026-27
All Other $0 $88,460
GENERAL FUND TOTAL
ADMINISTRATIVE AND FINANCIAL
SERVICES, DEPARTMENT OF
DEPARTMENT TOTALS
GENERAL FUND
$0
2025-26
$0
$0
DEPARTMENT TOTAL - ALL FUNDS
LEGISLATURE
Legislature 0081
Initiative: Provides ongoing funding for the costs of an additional Legislator.
$88,460
2026-27
$88,460
$88,460
GENERAL FUND
Personal Services
All Other
GENERAL FUND TOTAL
Legislature 0081
Initiative: Provides one-time fhnding for the
GENERAL FUND
All Other
GENERAL FUND TOTAL
LEGISLATURE
DEPARTMENT TOTALS
GENERAL FUND
DEPARTMENT TOTAL - ALL FUNDS
2025-26
$0
$0
$0
costs of adding a new Legislator.
2025-26
$0
$0
2025-26
$0
2026-27
$43,611
$60,376
$103,987
2026-27
$80,047
$80,047
2026-27
$184,034
$184.034
Page6-mLR0235(02)
COMMITTEE AMENDMENT
ROS
COMMITTEE AMENDMENT "/J. " to S,P. 344, L,D. 785
SECTION TOTALS 2025-26 2026-27
GENERAL FUND $0 $272,494
SECTION TOTAL-ALL FUNDS $0 $272,494
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section
number to read consecutively.
SUMMARY
This amendment, which is the majority report of the committee, replaces the bill and
changes the title. The amendment amends several provisions of state law affecting the
Passamaquoddy Tribe, the Penobscot Nation, the Houlton Band ofMaliseet Indians and
the Mi'kmaq Nation, referred to in this summary as "the Wabanaki Nations."
Part A of the amendment provides that, beginning with the First Regular Session of the
133rd Legislature, the Mi'kmaq Nation may, like the other Wabanaki Nations, elect a
representative to the House of Representatives of the Maine Legislature. The
representative of the Mi'kmaq Nation has, to the same extent as other members of the
Legislature, the right to receive a salary for each regular session of the Legislature, an
allowance for constituent services, allowances for travel-related expenses and per diem
payments for the duration of any special session of the Legislature.
Part B of the amendment authorizes an individual who is an enrolled member of one
of the Wabanaki Nations to subtract from the individual's income for Maine income tax
purposes the value of any otherwise taxable compensation, including benefits, received for
personal services performed as an employee of one of the Wabanaki Nations, regardless of
whether the individual resides on Indian territory or trust land,
Part C of the amendment clarifies that the sale of new manufactured housing to an
enrolled member of one of the Wabanaki Nations is exempt from Maine sales tax if the
new manufactured housing is to be installed on Indian territory or trust land. It also newly
exempts from Maine sales tax the sale of new manufactured housing to a construction
contractor or subcontractor if the new manufactured housing is intended to be physically
incorporated in, and become a permanent part of real property located on, Indian territory
or trust land for sale to one of the Wabanaki Nations or to an enrolled member of one of
the Wabanaki Nations.
Part D of the amendment makes the following 2 changes to the State's sales tax laws.
1. Under current law, sales of property or services to a tribal entity that are sourced to
Indian territory or trust land are exempt from Maine sales tax. Part D of the amendment
provides that, for purposes of determining whether sales to tribal entities are sourced to
tribal land, the phrase "tribal tand" includes no more than one parcel or 2 abutting parcels
of fee land owned by each of the Wabanaki Nations or the Wabanaki Nation's tribal entity
to operate a business in Aroostook County, Hancock County, Franklin County, Penobscot
County, Piscataquis County, Somerset County, Oxford County or Washington County as
long as the specifically identified parcel or abutting parcels of land remain owned by the
Wabanaki Nation or the Wabanaki Nation's tribal entity.
Page7-132LR0235(02)
COMMITTEE AMENDMENT
ROS
COMMITTEE AMENDMENT " f\ " to S.P. 344, L,D. 7&5( ^ (
2. Under current law, the State Controller makes a monthly transfer of funds to each
of the Wabanaki Nations in an amount equal to the sales tax revenue collected by the State
in the previous month for sales occurring on the respective Wabanaki Nation's Indian
territory or trust land. Part D of the amendment also provides that sales tax collected by
the State for sales occurring on no more than one parcel or 2 abutting parcels of fee land
owned by each of the Wabanaki Nations or the Wabanaki Nation's tribal entity to operate
a business in Aroostook County, Hancock County, Franklin County, Penobscot County,
Piscataquis County, Somerset County, Oxford County or Washington County must be
transferred to the Wabanaki Nation on a monthly basis as long as the specifically identified
parcel or abutting parcels of land remain owned by the respective Wabanaki Nation or the
respective Wabanaki Nation's tribal entity.
Part E of the amendment provides that, for property tax years beginning on or after
April 1, 2027, the property of a federally recognized Indian tribe, including the property of
a Wabanaki Na lion, is exempt from property taxes if the property is used for governmental
or public purposes; the property is located within 50 miles of the federally recognized
Indian tribe's tribal land; and an application to have the United States Secretary of the
Interior acquire the property for the benefit of the federally recognized Indian tribe is
pending.
FISCAL NOTE REQUIRED
(See attached)
Page8-132LR0235(02)
COMMITTEE AMENDMENT
Approved: 04/09/26 t-Kt-
LD 785 LR 235(02)
An Act to Enact the Remaining Recommendations of the Task Force on Changes to the Maine Indian
Claims Settlement Implementing Act
Fiscal Note for Bill as Amended by Committee Amendment '^"
Committee; Judiciary
Fiscal Note Required: Yes
Fiscal Note
Projections Projections
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29
Net Cost (Savings)
General Fund
$0
$317,144
$568,485
$520,133
Appropriations/Allocations
General Fund
$0
$272,494
$107,735
$116,383
Revenue
General Fund
Other Special Revenue Funds
$0
$0
($44,650)
($2,350)
($460,750)
($24,250)
($403,750)
($21,250)
Fiscal Detail and Notes
The bill provides an ongoing appropriation of $103,987 in fiscal year 2026-27 to the Legislature for the costs of an
additional Legislative member representing the Mi'kmaq Nation. The bill atso provides an appropriation of $80,047 in
fiscal year 2026-27 for the one-time cost of adding an additional member including chamber renovations, systems
modifications and programming changes.
This bill would result in a revenue decrease to the General Fund of $44,650 in fiscal year 2026-27, $460,750 in fiscal
year 2027-28 and $403,750 in fiscal year 2028-29 from changes to state tax law affecting the Wabanaki Nations
resulting in a loss in individual income tax and sales tax revenue. The bill would result in a revenue decrease to the
Local Government Fund and would result in increased costs in future years from increasing reimbursements paid to
municipalities for property fax exemptions. The bill also includes a one-time General Fund appropriation to the
Department of Administrative and Financial Services, Bureau of Revenue Services of $88,460 in fiscal year 2026-27
for administrative costs.
LR0235(02) - Fiscal Note - Page 1 of 1