Bill > LD1206

This bill amends the Business Equipment Tax Exemption (BETE) law to gradually increase the percentage of property tax revenue that municipalities can recover from the state for tax-exempt business equipment. Currently, municipalities can recover 50% of lost tax revenue from the state for business equipment that is exempt from property taxes. The bill proposes to incrementally raise this recovery percentage, starting at 60% for property tax years beginning April 1, 2026, and increasing to 70% in 2027, then 75% for 2028 and 2029, and finally reaching 80% for property tax years beginning on or after April 1, 2030. This change aims to provide municipalities with greater financial support to offset the revenue lost due to business equipment tax exemptions, which are designed to encourage business investment and economic development by reducing the tax burden on qualifying business equipment.

Budget and Finance

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1206&snum=132