This bill makes changes to improve the tax dispute resolution and administrative tax appeals process as follows. Part A adds to the duties and responsibilities of the taxpayer advocate and experience officer in the Department of Administrative and Financial Services, Bureau of Revenue Services the making of recommendations to further improve the tax appeals process. Part B creates the Independent Office of Tax Appeals in the Department of Administrative and Financial Services to replace the Maine Board of Tax Appeals and simplifies and modernizes the appeals process to improve the tax dispute resolution process. Part B takes effect September 15, 2026. Part C makes changes to the composition and duties of the State Board of Property Tax Review, including:
1. Changing the number of members from a fixed number, 15, to a range of 9 to members, as determined by the Governor, and allowing any combination of qualifications for members;
2. Requiring the annual appointment of a vice-chair of the board to act on the chair's behalf in the event of the chair's recusal or other unavailability;
3. Reducing the size of the panels convened to determine appeals, including jurisdictional issues, from 5 board members to 3 board members and reducing the quorum to 2;
4. Expanding case jurisdiction by transferring jurisdiction for certain cases, such as requests for abatement, currently appealable to county commissioners for nonresidential property assessments over $500,000; and
5. Requiring, at the direction of the Commissioner of Administrative and Financial Services, the limited-period director position established and subsequently reauthorized through June 18, 2027 to assist the board and the Independent Office of Tax Appeals. Part D changes the jurisdictional threshold amounts and appeals process for nonresidential property. Part E adds legislative review of the Independent Office of Tax Appeals, changes the year for legislative review of the State Board of Property Tax Review from 2027 to and directs the Department of Administrative and Financial Services, Bureau of Revenue Services, Office of Tax Policy to review the administrative tax appeals process and file with the Legislature by December 15, 2026 a report and recommended legislation for further simplifying and modernizing the tax appeals process.

Statutes affected:
Bill Text LD 2178, SP 883: 36.151, 4.807, 5.12004, 36.111, 36.112, 36.191, 5.282, 36.271, 36.273, 36.844, 36.843, 3.959