An Act to Establish a State Tax Amnesty Program to Increase
Maine Legislature, Session 132, LD 0778
Sponsors: BALDACCI, FREDERICKS

Legislative Document
No. 778
S.P. 334
In Senate, March 4, 2025
An Act to Establish a State Tax Amnesty Program to Increase 
Revenue Collections
Received by the Secretary of the Senate on February 26, 2025.  Referred to the Committee 
on Taxation pursuant to Joint Rule 308.2 and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator BALDACCI of Penobscot.
Cosponsored by Representative FREDERICKS of Sanford and
Senator: MARTIN of Oxford.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA c. 914-E is enacted to read:
CHAPTER 914-E
2025 MAINE TAX AMNESTY PROGRAM
§6621.  2025 Maine Tax Amnesty Program established
There is established the 2025 Maine Tax Amnesty Program, referred to in this chapter 
as "the tax amnesty program."  The tax amnesty program is intended to encourage 
delinquent taxpayers to comply with the State's tax laws and to enable the assessor to 
identify and collect previously unreported taxes and to accelerate collection of certain 
delinquent tax liabilities.  The long-term goal of the tax amnesty program is to improve 
taxpayer compliance with the State's tax laws.
§6622.  Administration; program qualifications; taxpayer immune from prosecution 
and penalties
The assessor shall administer the tax amnesty program. The following provisions 
govern eligibility for the tax amnesty program.
1.  Qualifying tax liabilities.  The tax amnesty program applies to tax liabilities 
delinquent as of September 30, 2025, including tax due for which a return has not been 
filed. A taxpayer may participate in the tax amnesty program to the extent of the 
uncontested portion of an assessed liability.
2.  Taxpayer participation while under audit or subject to administrative or 
judicial proceeding.  A taxpayer may participate in the tax amnesty program whether or 
not the taxpayer is under audit and without regard to whether the amount due is subject to 
a pending administrative or judicial proceeding, except that the following circumstances 
disqualify a taxpayer from participation.
A.  The taxpayer is currently charged with, and has been accepted by the Attorney 
General for criminal prosecution arising from, a violation of the state tax laws as 
provided in this Title or Title 17-A, or is applying for relief on a debt that is the result 
of a criminal conviction.
B.  The taxpayer is applying for relief with respect to a tax liability for which the State 
has secured a warrant or civil judgment in its favor in Superior Court.
3.  Taxpayer waives right to protest return or seek refund under tax amnesty 
program.  Participation in the tax amnesty program is conditioned upon the taxpayer's 
agreement to forgo the right to protest or pursue an administrative or judicial proceeding 
with regard to returns filed under the tax amnesty program or to claim any refund of money 
paid under the tax amnesty program.
4.  Immunity from prosecution and penalties; reduction of interest.  Except as 
otherwise provided in this chapter, a taxpayer with a tax liability within the limitations of 
this chapter and who meets the eligibility requirements of this section is immune from 
criminal or civil prosecution or civil penalties with respect to that tax liability and is 
required to pay only 1/2 of the interest associated with that tax liability if:
A.  The taxpayer properly completes and files a 2025 amnesty tax return as described 
in section 6625 in the manner required by the assessor;
B.  The assessor approves the return; and
C.  The taxpayer pays all tax and interest as determined on the return before the end of 
the amnesty period described in section 6624.
§6623.  Undisclosed liabilities
This chapter may not be construed to prohibit the assessor from instituting civil or 
criminal proceedings against any taxpayer with respect to any amount of tax that is not 
disclosed either on the 2025 amnesty tax return described in section 6625 or on any other 
return filed with the assessor.
§6624.  Amnesty period
The time period during which a 2025 amnesty tax return described in section 6625 may 
be filed is October 1, 2025 to December 31, 2025.
§6625.  2025 amnesty tax return
The assessor shall prepare and make available a 2025 amnesty tax return that taxpayers 
must complete and file to participate in the tax amnesty program. The return and associated 
guidelines prepared by the assessor that govern participation in the tax amnesty program 
are exempt from the Maine Administrative Procedure Act. A filed return requires the 
approval of the assessor.  The assessor may deny any return not consistent with the tax 
amnesty program.
§6626.  Preamnesty settlements
Notwithstanding any provision of this chapter to the contrary, the assessor shall, during 
the period beginning on the effective date of this chapter to September 30, 2025, make a 
settlement offer that requires full payment of tax and 1/2 of the accrued interest to any 
taxpayer that has a recorded and recognized delinquent state tax liability as of the effective 
date of this chapter. The assessor may, through a settlement offer made pursuant to this 
section, abate the amount of any penalties owed by the taxpayer associated with the tax 
liability addressed in the settlement offer.
A taxpayer is not eligible for a settlement offer authorized under this section if the 
taxpayer's liability is the result of a criminal conviction or the taxpayer is currently charged 
with a criminal offense arising from a violation of the state tax laws as provided in this 
Title or Title 17-A or has been referred to the Attorney General for criminal prosecution.
Sec. 2.  Preamnesty collections; legislative intent.  The Legislature finds that it 
is in the best interest of the State and public welfare of the people of the State to ensure that 
there is no delay in the payment of delinquent state tax liabilities as a result of the 2025 
Maine Tax Amnesty Program established in the Maine Revised Statutes, Title 36, chapter 
914-E.  The Legislature further finds it foreseeable that many taxpayers may choose to 
defer payment of delinquent tax liabilities in order to take advantage of lower interest and 
penalty amounts available under the 2025 Maine Tax Amnesty Program.  Therefore, to 
ensure the timely collection of state tax revenue prior to the effective date of the 2025 
Maine Tax Amnesty Program, the Legislature encourages the State Tax Assessor to use the 
full extent of the State Tax Assessor's authority under Title 36, including the abatement of 
interest and penalty amounts consistent with the provisions of the 2025 Maine Tax 
Amnesty Program.
SUMMARY
This bill enacts the 2025 Maine Tax Amnesty Program for the purposes of encouraging 
delinquent taxpayers to comply with the law, collecting unreported taxes and accelerating 
the collection of certain delinquent state tax liabilities.  Under the program, a person with 
a tax delinquency as of September 30, 2025 who is approved for participation in the 
program by the State Tax Assessor after filing a 2025 amnesty tax return may pay the taxes 
owed plus 1/2 the accrued interest and is immune from criminal or civil prosecution or civil 
penalties associated with the delinquency.  The period during which a delinquency may be 
paid under the program is from October 1, 2025 to December 31, 2025. A taxpayer is not 
eligible for the program if the taxpayer is currently being prosecuted for violation of state 
tax laws or the debt for which the taxpayer is seeking relief is the result of a criminal 
conviction or the State has secured a warrant or civil judgment in its favor with respect to 
that debt.
In order to discourage taxpayers from delaying until the start of the amnesty period to 
pay their delinquent taxes, beginning on the effective date of this legislation until 
September 30, 2025, the State Tax Assessor is required to offer a delinquent taxpayer a 
preamnesty settlement that requires the taxpayer to make the full payment of the 
outstanding tax and 1/2 of the interest accrued. The State Tax Assessor is authorized to 
abate the amount of any penalties owed by the taxpayer associated with the tax liability 
through a preamnesty settlement. A taxpayer is not eligible for a settlement offer if the 
taxpayer's liability is the result of a criminal conviction or the taxpayer is currently charged 
with a criminal offense arising from a violation of the state tax laws as provided in the 
Maine Revised Statutes, Title 17-A or Title 36 or has been referred to the Attorney General 
for criminal prosecution.