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132nd MAINE LEGISLATURE
FIRST REGULAR SESSION-2025
Legislative Document No. 1206
S.P. 495 In Senate, March 20, 2025
An Act to Control Property Taxes by Increasing the Percentage of
the Business Equipment Tax Exemption That Municipalities May
Recover
Reference to the Committee on Taxation suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator TEPLER of Sagadahoc.
Cosponsored by Senators: DUSON of Cumberland, ROTUNDO of Androscoggin, TALBOT
ROSS of Cumberland, TIPPING of Penobscot, Representatives: DUCHARME of Madison,
ROEDER of Bangor.
Page 1 - 132LR1003(01)
1Be it enacted by the People of the State of Maine as follows:
2Sec. 1. 36 MRSA §694, sub-§2, ¶A, as enacted by PL 2005, c. 623, §1, is amended
3 to read:
4 A. Notwithstanding section 661, upon proof in a form satisfactory to the bureau, unless
5 a municipality chooses reimbursement under paragraph B, a municipality that has
6 accepted a valid exemption under this subchapter is entitled to recover from the State
7 the applicable percentage of property tax revenue lost by reason of the exemption.
8 Except as otherwise provided in this subsection, the applicable percentage is:
9 (1) For property tax years beginning April 1, 2008, 100%;
10 (2) For property tax years beginning April 1, 2009, 90%;
11 (3) For property tax years beginning April 1, 2010, 80%;
12 (4) For property tax years beginning April 1, 2011, 70%;
13 (5) For property tax years beginning April 1, 2012, 60%; and
14 (6) For property tax years beginning April 1, 2013 and for subsequent tax years
15 prior to April 1, 2026, 50% .;
16 (7) For property tax years beginning April 1, 2026, 60%;
17 (8) For property tax years beginning April 1, 2027, 70%;
18 (9) For property tax years beginning April 1, 2028 and April 1, 2029, 75%; and
19 (10) For property tax years beginning on or after April 1, 2030, 80%.
20SUMMARY
21 This bill amends provisions governing the business equipment tax exemption. Current
22 law allows municipalities to recover from the State 50% of the tax revenue lost as the result
23 of a valid business equipment tax exemption. The bill increases the percentage that a
24 municipality may recover for property tax years beginning April 1, 2026 to 60%. Under
25 the bill, the percentage recoverable increases each property tax year until the percentage
26 recoverable is 80% for property tax years beginning on or after April 1, 2030.
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