APPROVED CHAPTER
JULY 1, 2025 470
BY GOVERNOR PUBLIC LAW
STATE OF MAINE
_____
IN THE YEAR OF OUR LORD
TWO THOUSAND TWENTY-FIVE
_____
S.P. 412 - L.D. 982
An Act to Establish Equal Tax Treatment for the Mi'kmaq Nation
Be it enacted by the People of the State of Maine as follows:
PART A
Sec. A-1. Legislative findings and purpose. The Legislature finds and declares
that the changes to the State's tax laws and rules that appear in Parts B to F of this Act will:
1. Improve the economic opportunities available to and the welfare of the Mi'kmaq
Nation and its members;
2. Encourage economic development within the lands of the Mi'kmaq Nation, the
benefits of which will accrue not only to the nation and its members but also to surrounding
communities and the State; and
3. Clarify and simplify the application of the State's tax laws to the Mi'kmaq Nation
as well as to its lands and members, in order to reduce the costs of tax compliance to the
nation and its members and to reduce the cost to the State of administering its tax laws.
PART B
Sec. B-1. 36 MRSA §111, sub-§1-F is enacted to read:
1-F. Mi'kmaq Nation. "Mi'kmaq Nation" has the same meaning as in Title 30, section
7203, subsection 4.
Sec. B-2. 36 MRSA §111, sub-§1-G is enacted to read:
1-G. Mi'kmaq Nation Trust Land. "Mi'kmaq Nation Trust Land" has the same
meaning as in Title 30, section 7203, subsection 6.
Sec. B-3. 36 MRSA §111, sub-§8, as enacted by PL 2021, c. 681, Pt. C, §7, is
amended to read:
8. Tribal entity. "Tribal entity" means a business entity:
A. Wholly owned by the Houlton Band of Maliseet Indians, the Mi'kmaq Nation, the
Passamaquoddy Tribe, the Penobscot Nation, a tribal member or tribal members or
some combination thereof. For purposes of determining ownership of an entity, a
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 married couple including at least one tribal member is treated as one tribal member,
regardless of which spouse owns the entity; or
B. Where When 75% of the ownership interests are held in aggregate by the Houlton
Band of Maliseet Indians, the Mi'kmaq Nation, the Passamaquoddy Tribe or the
Penobscot Nation and the entity is controlled and managed by the Houlton Band of
Maliseet Indians, the Mi'kmaq Nation, the Passamaquoddy Tribe or the Penobscot
Nation, consistent with the requirements of 13 Code of Federal Regulations, Section
124.109(c)(4); as determined by the federal Small Business Administration or the
assessor as consistent with 13 Code of Federal Regulations, Section
124.109(c)(4)(i)(A); or as determined by the federal Small Business Administration as
consistent with 13 Code of Federal Regulations, Section 124.109(c)(4)(i)(B).
A tribal entity must be a separate and distinct legal entity organized or chartered by federal,
state or tribal authorities.
Sec. B-4. 36 MRSA §111, sub-§9, as enacted by PL 2021, c. 681, Pt. C, §8, is
amended to read:
9. Tribal land. "Tribal land" means land within the Houlton Band Trust Land, the
Mi'kmaq Nation Trust Land, the Passamaquoddy Indian territory or the Penobscot Indian
territory.
Sec. B-5. 36 MRSA §111, sub-§10, as enacted by PL 2021, c. 681, Pt. C, §9, is
amended to read:
10. Tribal member. "Tribal member" means an enrolled member of the Houlton
Band of Maliseet Indians, the Mi'kmaq Nation, the Passamaquoddy Tribe or the Penobscot
Nation.
Sec. B-6. 36 MRSA §194-E, as enacted by PL 2021, c. 681, Pt. C, §10, is amended
to read:
§194-E. Tribes deemed as acting in a governmental capacity
For purposes of Parts 3 and 8 of this Title, the Passamaquoddy Tribe and the Penobscot
Nation are deemed to act in a governmental capacity as described in Title 30, section 6208,
subsection 3 and not in a business capacity. For purposes of Parts 3 and 8 of this Title, the
Houlton Band of Maliseet Indians is and the Mi'kmaq Nation are deemed to act in a
governmental capacity and not in a business capacity.
Sec. B-7. Application. For the purposes of the Maine Revised Statutes, Title 36,
Part 3, this Part applies to sales occurring on or after January 1, 2026. For purposes of Title
36, Part 8, this Part applies to tax years beginning on or after January 1, 2026.
PART C
Sec. C-1. 36 MRSA §1760, sub-§112, as enacted by PL 2021, c. 681, Pt. D, §1, is
amended to read:
112. Tribes. Sales to the Houlton Band of Maliseet Indians, the Mi'kmaq Nation, the
Passamaquoddy Tribe or the Penobscot Nation. For purposes of section 1760‑C, sales to
the tribes identified in this subsection for any purpose are exempt.
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 Sec. C-2. Application. This Part applies to sales occurring on or after January 1,
2026.
PART D
Sec. D-1. 36 MRSA §191, sub-§2, ¶QQQ, as enacted by PL 2021, c. 681, Pt. E,
§1, is amended to read:
QQQ. The disclosure of information to the Houlton Band of Maliseet Indians, the
Mi'kmaq Nation, the Passamaquoddy Tribe or the Penobscot Nation necessary for the
administration of sales tax revenue transfers under section 1815.
Sec. D-2. 36 MRSA §1815, sub-§1-C is enacted to read:
1-C. Mi'kmaq Sales Tax Fund. The Mi'kmaq Sales Tax Fund, referred to in this
section as "the Mi'kmaq fund," is established as a dedicated account to be administered by
the Treasurer of State for the purpose of returning sales tax revenue to the Mi'kmaq Nation
pursuant to subsections 2 and 3.
Sec. D-3. 36 MRSA §1815, sub-§2, as amended by PL 2021, c. 681, Pt. E, §2, is
further amended to read:
2. Monthly transfer. By the 20th day of each month, the assessor shall notify the
State Controller and the Treasurer of State of the amount of revenue attributable to the tax
collected under this chapter in the previous month on sales occurring on the
Passamaquoddy Indian territory, the Penobscot Indian territory and, the Houlton Band
Trust Land and the Mi'kmaq Nation Trust Land, respectively, reduced by the transfer to the
Local Government Fund required by Title 30‑A, section 5681. When notified by the
assessor, the State Controller shall transfer those amounts to the Passamaquoddy fund, the
Penobscot fund and, the Maliseet fund and the Mi'kmaq fund, respectively.
For purposes of this subsection, a sale occurs on the Passamaquoddy Indian territory, the
Penobscot Indian territory or, the Houlton Band Trust Land or the Mi'kmaq Nation Trust
Land if:
A. The business location of the seller from which the purchase is made is on
Passamaquoddy Indian territory, Penobscot Indian territory or, Houlton Band Trust
Land or Mi'kmaq Nation Trust Land, respectively; and
B. The tangible personal property or taxable service is received by the purchaser also
on Passamaquoddy Indian territory, Penobscot Indian territory or, Houlton Band Trust
Land or Mi'kmaq Nation Trust Land, respectively. For purposes of this paragraph,
"received" has the same meaning as in section 1819.
Sec. D-4. 36 MRSA §1815, sub-§3, as amended by PL 2021, c. 681, Pt. E, §2, is
further amended to read:
3. Monthly payment. By the end of each month, the Treasurer of State shall make
payments to the Passamaquoddy Tribe from the Passamaquoddy fund, to the Penobscot
Nation from the Penobscot fund and, to the Houlton Band of Maliseet Indians from the
Maliseet fund and to the Mi'kmaq Nation from the Mi'kmaq fund equal to the amounts
transferred into the respective fund.
Sec. D-5. 36 MRSA §1815, sub-§4, as enacted by PL 2021, c. 681, Pt. E, §2, is
amended to read:
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 4. Quarterly reconciliation. The monthly payments due under this section must be
adjusted by any credit or debit necessary for a quarterly reconciliation of payments and
transfers made under this section for any erroneous payment or transfers and, any erroneous
collection and any corresponding refund and by any subsequent assessment, remittance or
refund of sales tax to or by the State.
Sec. D-6. Application. This Part applies to sales occurring on or after January 1,
2026.
PART E
Sec. E-1. 36 MRSA §5102, sub-§6, as amended by PL 2021, c. 681, Pt. G, §2, is
further amended by amending the last blocked paragraph to read:
"Corporation" does not include the Passamaquoddy Tribe, the Penobscot Nation, the
Houlton Band of Maliseet Indians, the Mi'kmaq Nation or a corporation organized by the
Passamaquoddy Tribe, the Penobscot Nation or, the Houlton Band of Maliseet Indians or
the Mi'kmaq Nation under Section 17 of the federal Indian Reorganization Act, 25 United
States Code, Section 5124.
Sec. E-2. Application. This Part applies to tax years beginning on or after January
1, 2026.
PART F
Sec. F-1. Rulemaking. The Department of Administrative and Financial Services,
Bureau of Revenue Services may adopt rules to implement Parts A, B, C, D and E. Rules
adopted under this section may include, but are not limited to, rules specifying reporting
requirements and the maintenance by the Mi'kmaq Nation and provision to the bureau of
lists of the nation's tribal land, tribal members, tribal entities and corporations organized
under 25 United States Code, Section 5124. Rules adopted pursuant to this section are
routine technical rules as defined in the Maine Revised Statutes, Title 5, chapter 375,
subchapter 2-A.
PART G
Sec. G-1. Appropriations and allocations. The following appropriations and
allocations are made.
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF
Revenue Services, Bureau of 0002
Initiative: Provides one-time funding for computer programming costs.
GENERAL FUND 2025-26 2026-27
All Other $19,300 $0
__________ __________
GENERAL FUND TOTAL $19,300 $0
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Statutes affected:
Bill Text ACTPUB , Chapter 470: 36.111, 36.194, 36.1760, 36.191, 36.1815, 36.5102