Bill > H3152

This bill comprehensively prohibits state agencies, the department of revenue, state treasurer, and constitutional officers from employing "contingency fee auditors" - professionals who are paid based on the amount of tax, interest, or penalties they assess or collect. The legislation specifically bans contracts that compensate tax experts, auditors, or assessment professionals on a contingent fee basis, which could potentially create a financial incentive to inflate tax assessments. The bill applies to multiple contexts, including determining taxpayer liability, assisting local municipal assessors, and conducting tax-related audits or disputes. All existing regulations authorizing contingency-based contracts will be repealed, and the law becomes effective on July 1, 2026, with provisions to wind down existing contingency fee contracts. The underlying intent appears to be preserving the independence and objectivity of tax assessment processes by removing financial incentives that might compromise fair and unbiased evaluation of tax liabilities.

Budget and Finance

https://malegislature.gov/Bills/194/H3152