Bill > LD785

This bill makes several changes to tax laws concerning the Wabanaki Nations, including the Mi'kmaq Nation. Starting with the 133rd Legislature, the Mi'kmaq Nation will have a tribal clerk who will certify the name and residence of their representative-elect to the Legislature, similar to the Penobscot Indian Nation, Passamaquoddy Tribe, and Houlton Band of Maliseet Indians. The bill also defines "tribal member compensation" as income received by tribal members for personal services performed as employees of the Passamaquoddy Tribe, Penobscot Nation, Houlton Band of Maliseet Indians, or Mi'kmaq Nation, and exempts this compensation from Maine income tax to the extent it's included in federal adjusted gross income and otherwise subject to Maine tax, effective for tax years beginning on or after January 1, 2027. Additionally, it expands sales tax exemptions for tribal members and tribal entities to include new manufactured housing for installation on tribal land and certain tribally owned "fee lands" (land owned in fee simple but still considered tribal land for tax purposes) within specific counties, with these changes also applying to sales on or after January 1, 2027. The bill also clarifies that sales tax revenue collected on sales occurring on specific tribally owned fee lands will be transferred to the respective tribal funds. Finally, it introduces a property tax exemption for federally recognized Indian tribes for property used for governmental or public purposes, located within 50 miles of tribal land, and pending acquisition by the U.S. Secretary of the Interior in trust for the tribe, effective for property tax years beginning on or after April 1, 2027. The bill also includes appropriations for administrative expenses related to these changes and for the costs of an additional legislator.