In Resolve 2023, chapter 83, the Department of Administrative and Financial Services, Bureau of Revenue Services, Office of Tax Policy was required to review the State's taxation of metallic mineral mining and submit a report to the Joint Standing Committee on Taxation in the Second Regular Session of the 131st Legislature.
1. This bill implements the changes proposed in the legislation accompanying the report, including providing for the refund of sales tax on depreciable machinery and equipment purchases and also: A. Exempting unextracted minerals from the property tax; B. Simplifying the excise tax imposed on a mining company by establishing a formula of the gross proceeds of that mining company multiplied by 0.05; repealing the definition of "mineral products"; clarifying the definition of "tax year" for purposes of the mining excise tax; incorporating various administrative provisions; and eliminating credits for payment of certain property taxes and prepayment of taxes; and C. Eliminating the Mining Impact Assistance Fund and related provisions. The fund is used to provide grants to municipalities, counties and the unorganized territory to offset the loss of property tax revenue and to provide necessary new or additional public facilities and services related to mining.
2. The bill also makes the following changes not included in the Office of Tax Policy's original report: A. It clarifies the imposition and calculation of the mining excise tax; B. It adds administrative provisions regarding extensions, amended returns, accounting periods and estimated tax payments; and C. It eliminates the Mining Oversight Fund and requires that, of the mining excise tax revenue, 75% is deposited in the Land for Maine's Future Trust Fund and 25% is deposited in the General Fund.

Statutes affected:
Bill Text LD 223, HP 146: 14.6662, 36.271, 36.603, 36.655, 36.656, 36.2013, 36.2854, 36.2855, 36.2856, 36.2857, 36.2858, 36.2859, 36.2861, 36.2862, 36.2863, 36.2865, 36.2866