APPROVED CHAPTER
JULY 26, 2023 441
BY GOVERNOR PUBLIC LAW
STATE OF MAINE
_____
IN THE YEAR OF OUR LORD
TWO THOUSAND TWENTY-THREE
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H.P. 1153 - L.D. 1808
An Act to Amend the State Tax Laws
Emergency preamble. Whereas, acts and resolves of the Legislature do not
become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, legislative action is immediately necessary to ensure continued and
efficient administration of municipal property taxes and the property tax stabilization for
senior citizens program; and
Whereas, the property tax stabilization for senior citizens program needs to be
updated before the 90-day period expires to avoid delay in the processing of municipal
property taxes and municipal applications for state reimbursement; and
Whereas, in the judgment of the Legislature, these facts create an emergency within
the meaning of the Constitution of Maine and require the following legislation as
immediately necessary for the preservation of the public peace, health and safety; now,
therefore,
Be it enacted by the People of the State of Maine as follows:
PART A
Sec. A-1. 36 MRSA §1951-C, sub-§1, as enacted by PL 2019, c. 441, §8, is
amended to read:
1. Responsibilities of marketplace facilitator. A marketplace facilitator is
considered a retailer for each sale of tangible personal property or taxable services for
delivery in this State that the marketplace facilitator facilitates on or through its
marketplace, including for the collection of the recycling assistance fee pursuant to chapter
719.
Sec. A-2. 36 MRSA §2557, sub-§27, as enacted by PL 2003, c. 673, Pt. V, §25
and affected by §29, is amended to read:
27. Nonprofit housing development organizations. Sales to nonprofit organizations
whose primary purpose is to develop housing for low-income people. For the purposes of
this subsection, "low-income" means having income that is less than 120% of the median
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income for the area, adjusted for family size, as established by the United States
Department of Housing and Urban Development or its successor organization;
Sec. A-3. Effective date. This Part takes effect 90 days following adjournment of
the First Special Session of the 131st Legislature.
PART B
Sec. B-1. 36 MRSA §653, sub-§1, ¶C, as amended by PL 2021, c. 682, §1, is
further amended by amending subparagraph (1) to read:
(1) During any federally recognized war period, including the Korean Conflict,
the Vietnam War, the Persian Gulf War, the periods from August 24, 1982 to July
31, 1984 and December 20, 1989 to January 31, 1990, Operation Enduring
Freedom, Operation Iraqi Freedom and Operation New Dawn, or during the period
from February 1, 1955 to February 27, 1961, or who were awarded the Armed
Forces Expeditionary Medal an expeditionary medal for service in the Armed
Forces of the United States, when they have reached the age of 62 years or when
they are receiving any form of pension or compensation from the United States
Government for total disability, service-connected or nonservice-connected, as a
veteran. A veteran of the Vietnam War must have served on active duty after
February 27, 1961 and before May 8, 1975. "Persian Gulf War" means service on
active duty on or after August 2, 1990 and before or on the date that the United
States Government recognizes as the end of that war period; or
Sec. B-2. 36 MRSA §653, sub-§1, ¶D-1, as amended by PL 2021, c. 682, §2, is
further amended to read:
D-1. The estates up to the just value of $50,000, having a taxable situs in the place of
residence, for specially adapted housing units, of veterans who served in the Armed
Forces of the United States during any federally recognized war period, including the
Korean Conflict, the Vietnam War, the Persian Gulf War, the periods from August 24,
1982 to July 31, 1984 and December 20, 1989 to January 31, 1990, Operation Enduring
Freedom, Operation Iraqi Freedom and Operation New Dawn, or during the period
from February 1, 1955 to February 27, 1961, or who were awarded the Armed Forces
Expeditionary Medal an expeditionary medal for service in the Armed Forces of the
United States, and who are paraplegic veterans within the meaning of as described in
38 United States Code, Chapter 21, Section 2101, and who received a grant from the
United States Government for any such housing, or of the unremarried widows or
widowers of those veterans. A veteran of the Vietnam War must have served on active
duty after February 27, 1961 and before May 8, 1975. "Persian Gulf War" means
service on active duty on or after August 2, 1990 and before or on the date that the
United States Government recognizes as the end of that war period. The exemption
provided in this paragraph applies to the property of the veteran including property
held in joint tenancy with a spouse or held in a revocable living trust for the benefit of
that veteran.
Sec. B-3. 36 MRSA §694, sub-§2, ¶B, as amended by PL 2013, c. 544, §4 and
affected by §7, is further amended to read:
B. In the case of a municipality that chooses reimbursement under this paragraph in
which the personal property factor exceeds 5%, the applicable percentage for exempt
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 business equipment is 50% plus an amount equal to 1/2 of the personal property factor.
For purposes of this paragraph, "personal property factor" means the percentage
derived from a fraction, the numerator of which is the value of taxable business
personal property in the municipality, whether taxable or exempt plus the value of
exempt eligible business equipment, and the denominator of which is the value of all
taxable property in the municipality plus the value of exempt business equipment. For
purposes of this paragraph, the taxable value of exempt business equipment is the value
that would have been assessed on that equipment if it were taxable.
Sec. B-4. 36 MRSA §701-A, 3rd ¶, as enacted by PL 2021, c. 663, §1, is amended
to read:
For the purpose of establishing the valuation of improved real property, the property
must be valued based on its highest and best use as of April 1st of each year, taking all of
the following 3 approaches to value into consideration: cost, income capitalization and
sales comparison. In establishing the valuation of improved real property, assessors shall
consider age, condition, use, type of construction, location, design, physical features and
economic characteristics.
Sec. B-5. 36 MRSA §6260, sub-§2, as amended by PL 1991, c. 846, §38, is further
amended to read:
2. Deferred property taxes due. The amounts of deferred property taxes, including
accrued interest, for all years are due and payable to the bureau April 30th of the year
following the calendar year in within 12 months of the date on which the circumstance
occurs, except as provided in subsection 3 and section sections 6261 and 6263;
Sec. B-6. 36 MRSA §6263, as enacted by PL 1989, c. 534, Pt. C, §1, is amended to
read:
§6263. Extension of time for payment upon death of claimant or spouse
1. Payment extension. If the taxpayer who claimed homestead property tax deferral
dies, or if a spouse who continued the deferral under section 6261 dies, the bureau may
extend the time for payment of the deferred taxes and interest accruing with respect to the
taxes becoming due and payable under section 6260, subsection 2, if:
A. The homestead property becomes property of an individual or individuals:
(1) By inheritance or devise; or
(2) If the individual or individuals are heirs or devisees in the course of settlement
of the estate;
B. An individual or individuals commence occupancy of the property as a principal
residence on or before August 15th of the calendar year following the calendar year
within 12 months of the date of death; or and
C. An individual or individuals make application to the bureau for an extension of time
for payment of the deferred taxes and interest prior to August 15th of the calendar year
following the calendar year within 12 months of the date of death.
2. Extension terms. Subject to paragraph B, an extension granted under this section
shall subsection 1 must be for a period not to exceed 5 6 years after August 15th of the
calendar year following the calendar year from the date of death. The terms and conditions
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under which the extension is granted shall must be in accordance with a written agreement
entered into by the bureau and the individual or individuals.
An extension granted under this section shall terminate terminates immediately if:
A. The homestead property is sold or otherwise transferred by any party to the
extension agreement;
B. All of the heirs or devisees who are parties to the extension agreement cease to
occupy the property as a principal residence; or
C. The homestead property, a mobile or floating home, is moved out of the State.
3. Accrued interest. During the period of extension, and until paid, the deferred taxes
shall continue to accrue interest in the same manner and at the same rate as provided under
section 6255, subsection 3. No interest Interest may not accrue upon interest.
Sec. B-7. Effective date. This Part takes effect 90 days following adjournment of
the First Special Session of the 131st Legislature.
PART C
Sec. C-1. 36 MRSA §2521-A, first ¶, as amended by PL 2015, c. 300, Pt. A, §29,
is further amended to read:
Every insurance company, association, producer or attorney-in-fact of a reciprocal
insurer subject to the tax imposed by this chapter shall make payment of estimated tax on
or before the last day of each April, the 25th day of each June and the last day of each
October. Each April and June estimated tax payment must equal 35% of the total tax paid
for the preceding calendar year or at least 35% of the total tax to be paid for the current
calendar year and each October estimated tax payment must equal 15% of the total tax paid
for the preceding calendar year or at least 15% of the total tax to be paid for the current
calendar year. except that, for the tax on nonadmitted insurance premiums under section
2531, the surplus lines producer or the insured may elect to determine the estimated tax
payment for each estimated tax period on the basis of premiums on contracts written during
each estimated tax period of the current calendar year. A final return must be filed on or
before March 15th covering the prior calendar year.
Sec. C-2. 36 MRSA §2531, sub-§1, as repealed and replaced by PL 2011, c. 548,
§19 and affected by §36, is amended to read:
1. Generally. All gross direct insurance premiums and annuity considerations paid to
on contracts written by insurers that do not have certificates of authority to do business in
this State issued by the Superintendent of Insurance pursuant to Title 24‑A are subject to
taxation in accordance with this section if this State is the insured's home state, as defined
in the federal Nonadmitted and Reinsurance Reform Act of 2010, Public Law 111-203,
Section 527. This section does not apply to reinsurance premiums paid by an authorized
domestic insurer.
Sec. C-3. 36 MRSA §5122, sub-§1, ¶Z, as repealed and replaced by PL 2009, c.
496, §21, is repealed.
Sec. C-4. 36 MRSA §5122, sub-§2, ¶HH, as amended by PL 2013, c. 331, Pt. C,
§32, is further amended to read:
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 HH. To the extent included in federal adjusted gross income, annuity payments made
to the survivor of a deceased member of the military who died as the result of service
in active or reserve components of the United States Army, Navy, Air Force, Marines
or Coast Guard under a survivor benefit plan or reserve component survivor benefit
plan pursuant to 10 United States Code, Chapter 73 reduced by any amount claimed as
a modification under paragraph M or, M-1 or M-2;
Sec. C-5. 36 MRSA §5147, as enacted by PL 2019, c. 401, Pt. C, §7 and amended
by c. 607, Pt. C, §3, is further amended to read:
§5147. Installment sale election
Notwithstanding any provision of this Part to the contrary, an individual who
transferred, during the taxable year, real or tangible personal property located in this State
under an installment sale agreement may elect to recognize, for purposes of determining
the taxable income under this chapter, the total gain from that sale in the taxable year of
the transfer, or to recognize any remaining gain in a subsequent tax year to the extent of
the gain not reported in a prior tax year. An election under this section is not available to
an individual unless that individual is a nonresident of this State at the time of the transfer
or at the time the election is made by the individual. Any installment interest related to the
sale of property for which an election is made under this section is excluded from the
taxable income of the nonresident individual under chapter 807 for the taxable year for
which the election under this section is made and any subsequent taxable year. The interest
exclusion in this section does not apply to any loan interest arrangement which has as a
principal purpose the avoidance of any tax of this State. An election under this section must
be made on a timely filed original income tax return, including if filed by any extension
granted for filing the return, and, once made, is irrevocable.
Sec. C-6. 36 MRSA §5219-PP, sub-§6 is enacted to read:
6. Application. Except for the credit allowed with respect to the carry-forward of
unused credit amounts pursuant to subsection 4, the tax credit allowed under this section
does not apply to taxable years beginning on or after January 1, 2024.
Sec. C-7. 36 MRSA §5231, sub-§1-A, as amended by PL 2019, c. 659, Pt. G, §2,
is further amended to read:
1-A. Federal extension. When an individual, estate or trust is granted an extension
of time within which to file a federal income tax return for any taxable year, an extension
to file the taxpayer's income tax return with respect to the tax imposed by this Part is
automatically granted for an equivalent period from the date prescribed for filing the return.
When a taxable corporation or a financial institution subject to the tax imposed by chapter
819 is granted an extension of time within which to file its federal income tax return for
any taxable year, an extension to file the taxpayer's income tax or franchise tax return with
respect to the tax imposed by this Part is automatically granted for an equivalent period
from the date prescribed for filing the return plus 30 days.
Sec. C-8. 36 MRSA §6753, sub-§12, as amended by PL 2015, c. 368, §5, is further
amended to read:
12. Qualified employee. Except for an employee in a call center in Aroostook County
or Washington County, "qualified employee" means a new, full-time employee hired in
this State by a qualified business, for whom a retirement program subject to the federal
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Employee Retirement Income Security Act of 1974, 29 United States Code, Chapter 18
and group health insurance are provided, and whose income derived from employment with
the applicant, calculated on a calendar year basis, is greater than the most recent annual per
capita personal income in the county in which the qualified employee is employed, as long
as Maine income tax withholding gross wages paid attributed to the qualified employee is
are subject to reimbursement to the qualified business under this chapter. "Qualified
employee" does not include an employee who is shifted to a qualified business from an
affiliated business. The commissioner shall determine whether a shifting of employees has
occurred.
For an employee in a call center in Aroostook County or Washington County, "qualified
employee" means a new, full-time employee hired in this State by a qualified business, for
whom a retirement program subject to the federal Employee Retirement Income Security
Act of 1974, 29 United States Code, Chapter 18 and group health insurance are provided,
and whose income derived from employment with the applicant, calculated on a weekly
basis, is greater than the average weekly wage for the most recent available calendar year
as derived from the quarterly census of employment and wages and provided annually by
the Department of Labor, as long as Maine income tax withholding gross wages paid
attributed to the qualified employee is are subject to reimbursement to the qualified
business under this chapter. "Qualified employee" does not include an employee who is
shifted to a qualified business from an affiliated business. The commissioner shall
determine whether a shifting of employees has occurred. The calculation of the average
weekly wage must include data from the counties of Androscoggin, Aroostook, Franklin,
Hancock, Kennebec, Knox, Lincoln, Oxford, Penobscot, Piscataquis, Sagadahoc,
Somerset, Waldo and Washington. Notwithstanding this subsection, with respect to a call
center in Aroostook or Washington county, in a county in which the average annual
unemployment rate at the time of certification for the most recent calendar year is greater
than the state average for the same year, the wage threshold is 90% of the average weekly
wage as derived from the quarterly census of employment and wages. Notwithstanding
this subsection, with respect to a call center in Aroostook or Washington county and upon
approval of the commiss