Part AA - Nonprofit Tax Review Task Force

Part AA of the State of Maine biennial budget, PL 2013, c. 368, directs the Commissioner of the Department of Administrative and Financial Services (DAFS), or the commissioner's designee, to convene a task force to evaluate the feasibility and desirability of identifying parameters and a process for imposing a temporary assessment on certain nonprofit organizations that will generate approximately $100,000,000 in revenue annually.

The task force shall prepare a report that must include recommendations, including the following:

  • An identification of certain nonprofit organizations on which the assessment will be imposed;
  • A value basis for the assessment that includes all land, buildings and equipment held by certain nonprofit organizations;
  • A method for calculating the amount of the assessment to be imposed on certain nonprofit organizations that includes a mechanism to provide adjustments for nonprofit organizations with fixed assets that are disproportionate to the size of the nonprofit organization's operating budget;
  • A method for crediting against the temporary assessment any payment in lieu of taxes that is being paid by a nonprofit organization; and
  • A process to transfer the assessment revenue to municipalities.

The DAFS Commissioner is required to submit a report of the task force’s review, including any necessary implementing legislation, to the Joint Standing Committee on Appropriations and Financial Affairs and the Joint Standing Committee on Taxation no later than December 1, 2013.