LD 565 (subjects: PROPERTY TAX , PROVISIONS REVISED )
Official bill page at mainelegislature.org: http://www.mainelegislature.org/legis/bills/display_ps.asp?ld=565&PID=1456&snum=127
- Rep. James Gillway of Searsport: (R – District 98) — e-mail | Facebook
Rep. Stacey Guerin of Glenburn: (R – District 102) — e-mail | Facebook
Rep. John Picchiotti of Fairfield: (R – District 108) — e-mail | Twitter | Facebook
Rep. Adam Goode of Bangor: (D – District 127) — e-mail | Twitter
Rep. William Tuell of East Machias: (R – District 139) — e-mail | Facebook
Rep. Anthony J. Edgecomb of Fort Fairfield: (R – District 148) — e-mail | Twitter | Facebook
Sen. Geoffrey Gratwick of Penobscot: (D – District 9) — e-mail | Twitter | Facebook
Sen. Eric Brakey of Androscoggin: (R – District 20) — e-mail | Twitter | Facebook
Sen. Amy Volk of Cumberland: (R – District 30) — e-mail | Twitter | Facebook
|2/26/2015||House||Committee on Taxation suggested and ordered printed.
The Bill was REFERRED to the Committee on TAXATION.
Sent for concurrence. ORDERED SENT FORTHWITH.
|2/26/2015||Senate||On motion by Senator McCormick of Kennebec, REFERRED to the Committee on Taxation, in concurrence.|
|4/23/2015||Senate||Pursuant to Joint Rule 310.3 Placed in Legislative Files (DEAD)|
An Act To Authorize Municipalities To Impose Service Charges on Tax-exempt Property Owned by Certain Nonprofit Organizations
Sec. 1. 36 MRSA 508, sub- 1, as enacted by PL 2007, c. 627, 12, is repealed and the following enacted in its place:
(1) Nonprofit nursing homes exempt under paragraph A and licensed by the Department of Health and Human Services pursuant to Title 22, chapter 405, nonprofit residential care facilities licensed by the Department of Health and Human Services pursuant to Title 22, chapter 1663 and nonprofit community mental health service facilities licensed by the Commissioner of Health and Human Services pursuant to Title 34-B, section 1203-A; and
(2) Property exempt under section 652, subsection 1, paragraph J that is partly owned or used by an entity exempt under section 652, subsection 1, paragraph E or G.
Sec. 2. 36 MRSA 508, sub- 1-A is enacted to read:
Sec. 3. Preexisting ordinances not invalidated. This Act does not void or otherwise invalidate any municipal ordinance adopted before the effective date of this Act pursuant to the Maine Revised Statutes, Title 36, section 508 or former section 652, subsection 1, paragraph L.
Current law allows a municipality to impose service charges on the owner of residential property that is totally exempt from property taxes, except for student housing and parsonages, that is used to provide rental income.
This bill instead provides that a municipality may impose service charges on property that is exempt from taxation because it is owned or used by entities in the following categories: benevolent and charitable institutions; literary and scientific institutions; chambers of commerce and boards of trade; fraternal organizations operating under a lodge system; and property jointly owned or used by those entities. Service charges may not be imposed on property exempt as a house of worship or parsonage or a veterans’ organization.
Service charges must meet the following conditions:
1. The property must be owned by an entity that owns exempt property in the municipality that would have a total assessed value of at least $1,000,000 if assessed for property tax purposes and the property must be owned by, rented to or otherwise occupied by a person or entity that provides any employee or independent contractor engaged to provide professional management services with compensation, exclusive of health benefits, in excess of 4 times the median household income for the county in which the property is located;
2. The municipality must adopt an ordinance imposing service charges approved by the voters through a referendum process;
3. The municipality may not impose a service charge on individual properties without imposing service charges on all other property in that municipality that is within the same category of exempt property;
4. The calculation of service charges imposed by municipalities must be based on the square footage of building space that is exempt from taxation unless the municipality determines that a different measure more accurately represents the cost of services for which the service charges are imposed; and
5. Service charges must be reduced by any payments made or services provided to the municipality by the exempt entity in lieu of taxes.
The bill provides that municipal ordinances adopted before the effective date of the legislation remain valid even if they do not comply with the new requirements. The bill retains the requirement in current law that service charges may not exceed 2% of the entity’s gross annual revenue.
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This information about LD 565 was last updated on 2016-05-12.
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