This bill makes the following changes to the State's tax laws. Part A:
1. Removes references to the expired Maine capital investment credit and makes other changes related to the removal of those references;
2. Aligns the pension deduction phase-out for married individuals filing separate returns with that of single individuals; and
3. Corrects a cross-reference to the law authorizing income tax due date extensions. Part B:
1. Removes crutches and wheelchairs from the exemption pertaining to prosthetic or orthotic devices under the Maine Revised Statutes, Title 36, section 1760, subsection 5-A that were made redundant by the recently enacted exemption of "durable medical equipment";
2. Repeals the sales tax exemption for sales of tangible personal property to be physically incorporated in and become a part of a portable classroom for lease to a school since this exemption is included in the exemption for property used in production, which includes sales to lessors of tangible personal property that becomes an ingredient or component part of property to be leased or rented out;
3. Clarifies the sales tax exemption for property used in production to correspond with the recent inclusion of leases in the definition of "sale"; and
4. Clarifies that the tobacco products tax on smokeless tobacco applies to smokeless tobacco products. Part C:
1. Clarifies that the property tax year is from April 1st to March 31st instead of the overlapping April 1st to April 1st;
2. Clarifies the procedure for documenting that a seller of real property has paid the seller’s pro rata share of taxes owed on property that is still the subject of a lien reflecting taxes due from someone else;
3. Changes cross-references as they pertain to a lien upon real estate;
4. Repeals, for property acquired by a municipality for delinquent taxes, the law regarding an excess funds process that a municipality is permitted to implement by ordinance. That process was rendered obsolete by the enactment of the Maine Revised Statutes, Title 36, section 943-C;
5. Corrects a clerical error;
6. Ensures that any sales of real estate upon which a tax lien mortgage has been foreclosed, other than sales to the former owner of the real estate, are made in compliance with the requirements of the United States Supreme Court’s decision in Tyler v. Hennepin County (598 U.S. 631);
7. Makes a grammatical correction by replacing the term "sum" with "product";
8. Clarifies that property held in a revocable living trust meets the fee simple estate ownership requirement for the homestead property tax deferral program; and
9. Aligns the homestead property tax deferral program’s foreclosure process with the general property tax provisions regarding the sale of foreclosed property. Part D:
1. Changes the taxpayer advocate and experience officer's annual reporting requirement start date from January 15, 2026 to January 15, 2027 and applies that change retroactively to January 1, 2026;
2. Removes the requirement that the State Tax Assessor annually provide each municipality with the amount of state-municipal revenue sharing and state aid for education. The Department of Education and the Office of the Treasurer of State maintain and provide this information on their respective websites;
3. Clarifies the repeal of the law regarding the income subtraction modification for long-term care insurance premiums made in Public Law 2015, chapter 267; and
4. Clarifies that the subtraction modification for any earnings on funds in an account established under a qualified ABLE program applies only to the extent the amount is included in federal adjusted gross income.

Statutes affected:
Bill Text LD 2188, HP 1469: 36.5122, 36.5200, 36.5295, 36.1760, 36.4403, 36.502, 36.943, 36.948, 36.949, 36.1281, 36.1283, 36.2723, 36.6252, 36.6254, 36.151, 36.507