Bill > LD438

This bill provides municipalities in Maine the authority to limit property tax exemptions for nonprofit organizations if the local governing body determines that such an exemption would negatively impact the town's residents. Specifically, the bill amends Section 652 of Title 36 of the Maine Revised Statutes (MRSA), which governs property tax exemptions. Under current law, nonprofits typically receive automatic property tax exemptions, but this new provision would allow municipal governments to reduce or restrict those exemptions through a formal vote if they believe the full exemption would be harmful to the community. The bill gives local governments more discretion in managing their tax base and addressing potential financial challenges created by extensive nonprofit property tax exemptions. By providing this flexibility, the legislation aims to balance the traditional tax-exempt status of nonprofits with the financial needs and considerations of individual municipalities.

Budget and Finance

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=438&snum=132