An Act to Amend Certain Tax Laws Regarding the Wabanaki Nations

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STATE OF MAINE
_____
IN THE YEAR OF OUR LORD
TWO THOUSAND TWENTY-SIX
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S.P. 344 - L.D. 785
An Act to Amend Certain Tax Laws Regarding the Wabanaki Nations
Be it enacted by the People of the State of Maine as follows:
PART A
Sec. A-1. 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. Beginning with the 133rd Legislature, the Tribal Clerk of the Mi'kmaq 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 Mi'kmaq Nation to the Legislature.
Sec. A-2. 3 MRSA §2, 9th ¶, as amended by PL 2023, c. 2, §4, is further amended
to read:
The member of the Penobscot Indian Nation, the member of the Passamaquoddy Indian
Tribe and, beginning with the Second Regular Session of the 125th Legislature, the member
of the Houlton Band of Maliseet Indians and, beginning 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
APPROVED
APRIL 15, 2026
BY GOVERNOR
CHAPTER
705
PUBLIC LAW
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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.
PART B
Sec. B-1. 36 MRSA §5102, sub-§5-B is enacted to read:
5-B. Tribal member compensation. "Tribal member compensation" means
compensation received by an individual 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 Passamaquoddy Tribe, the Penobscot Nation, the Houlton Band of
Maliseet Indians or the Mi'kmaq Nation. For purposes of this subsection, "compensation"
means all taxable remuneration and benefits for services performed by the individual as an
employee of the Passamaquoddy Tribe, the Penobscot Nation, the Houlton Band of
Maliseet Indians or the Mi'kmaq Nation, including the cash value of any taxable
remuneration and benefits paid in any medium other than cash.
Sec. B-2. 36 MRSA §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, notwithstanding where the tribal member resides.
Sec. B-3. Application. This Part applies to tax years beginning on or after January
1, 2027.
PART C
Sec. C-1. 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
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 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; and
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 less than one year to a tribal member 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. as well as:
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(1) Sales of motor vehicles other than those that are being 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 receipt of the vehicle; and
(2) Sales of new manufactured housing 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 housing 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 part of real property
located on, tribal land for sale to a tribal member or to the Passamaquoddy Tribe, the
Penobscot Nation, the Houlton Band of Maliseet Indians or the Mi'kmaq Nation.
Sec. C-2. Application. This Part applies to sales occurring on or after January 1,
2027.
PART D
Sec. D-1. 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 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; and
B. "Sales sourced to tribal land" means sales sourced pursuant to section 1819 to a
location on tribal land or to a location on specific tribally 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 tribally owned fee lands eligible for the sales
tax exemption set forth in this subsection and the sales tax transfer in section 1815 in
accordance with the following requirements.
(1) The Passamaquoddy Tribe, the Penobscot Nation, the Houlton Band of
Maliseet Indians and the Mi'kmaq Nation, referred to in this paragraph 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 apply, effective January 1st of the following year, at any one time
to no more than one parcel of land or 2 abutting parcels of land that are jointly used
to operate a business. To qualify for the exemption, the parcel or parcels of land
must be:
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(a) Owned in fee by the requesting Wabanaki Nation or a tribal entity owned
by the requesting Wabanaki Nation, a tribal member or members of the
requesting Wabanaki Nation or some combination thereof;
(b) Used by the requesting Wabanaki Nation or tribal entity to operate a
business; and
(c) Located within Aroostook County, Hancock County, Franklin County,
Penobscot County, Piscataquis County, Somerset County, Oxford County or
Washington County.
(2) If a parcel or parcels of land identified by rule as eligible for the sales tax
exemption set forth in this subsection and the sales tax transfer in section 1815
cease to meet the requirements of subparagraph (1) 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 requesting Wabanaki Nation
shall notify the bureau and may submit a new request under subparagraph (1) 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 subparagraph (1), the bureau shall adopt rules
identifying the parcel or parcels of land as tribally owned fee lands eligible for the
sales tax exemption set forth in this subsection and the sales tax transfer in section
1815.
Rules adopted pursuant to this paragraph are routine technical rules pursuant to Title
5, chapter 375, subchapter 2-A.
Sec. 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.
For purposes of this subsection, a sale occurs on the Passamaquoddy Indian territory, the
Penobscot Indian territory, the 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 Trust Land, respectively, or on the Passamaquoddy Tribe's, the
Penobscot Nation's, the Houlton Band of Maliseet Indian's or the Mi'kmaq Nation's
respective tribally owned fee land identified in rules adopted pursuant to section 1760,
subsection 114, paragraph C; and
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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 Passamaquoddy Tribe's,
the Penobscot Nation's, the Houlton Band of Maliseet Indian's or the Mi'kmaq Nation's
respective tribally 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.
PART E
Sec. E-1. 36 MRSA §651, sub-§1, ¶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 shall 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 shall must
be reimbursed by the county wherein the airport is situated; and
Sec. E-2. 36 MRSA §651, sub-§1, ¶G, as enacted by PL 1967, c. 115, is amended
to read:
G. 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 corporation.; and
Sec. E-3. 36 MRSA §651, sub-§1, ¶H is enacted to read:
H. For property tax years beginning on or after April 1, 2027, the property of a
federally recognized Indian tribe in the State 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 there is a pending application to have the United States
Secretary of the Interior acquire the property in trust for the benefit of the federally
recognized 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
Sec. F-1. 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
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__________ __________
GENERAL FUND TOTAL $0 $88,460

ADMINISTRATIVE AND FINANCIAL
SERVICES, DEPARTMENT OF

DEPARTMENT TOTALS 2025-26 2026-27

GENERAL FUND $0 $88,460
__________ __________
DEPARTMENT TOTAL - ALL FUNDS $0 $88,460
LEGISLATURE
Legislature 0081
Initiative: Provides ongoing funding for the costs of an additional Legislator.
GENERAL FUND 2025-26 2026-27
Personal Services $0 $43,611
All Other $0 $60,376
__________ __________
GENERAL FUND TOTAL $0 $103,987
Legislature 0081
Initiative: Provides one-time funding for the costs of adding a new Legislator.
GENERAL FUND 2025-26 2026-27
All Other $0 $80,047
__________ __________
GENERAL FUND TOTAL $0 $80,047

LEGISLATURE
DEPARTMENT TOTALS 2025-26 2026-27

GENERAL FUND $0 $184,034
__________ __________
DEPARTMENT TOTAL - ALL FUNDS $0 $184,034

SECTION TOTALS 2025-26 2026-27

GENERAL FUND $0 $272,494
__________ __________
SECTION TOTAL - ALL FUNDS $0 $272,494