Volume 29, Issue 5		July 2019

Maine Revenue Services (“MRS”) Announces
Taxpayer Service Hours

As previously announced in the June Tax Alert, MRS is changing taxpayer telephone services beginning August 1, 2019, to better serve the needs of Maine taxpayers and tax professionals.  Below is a summary of taxpayer services provided by MRS and the hours of availability.

Telephone taxpayer assistance: MRS telephone assistance will be available Monday through Friday between 9:00 a.m. and 4:00 p.m., state recognized holidays excepted.

See below for a complete list of MRS contact information for all tax types and services or check online at:  www.maine.gov/revenue/contact.html.

In-person assistance:  In-person assistance for all taxes and programs administered by MRS is available at 51 Commerce Drive, Augusta, Maine, Monday through Friday between 8:00 a.m. and 4:30 p.m., state recognized holidays excepted.  No appointment is necessary; however, identification may be required.

Online assistance:  Visit the MRS website at www.maine.gov/revenue to:

MRS Petition for Reconsideration Form Revised

MRS has revised its Petition for Reconsideration form which should be used when a taxpayer would like MRS to reconsider certain determinations with which the taxpayer disagrees.

The revised form is available on the MRS website at www.maine.gov/revenue/forms (click on General Forms).  Please discard any printed copies of prior versions of the form you may have and use the revised forms for all future filings.

MRS Extension of Time to File a Return

If you are unable to file your tax return by the original due date, Maine allows an automatic six-month extension of time to file.  A penalty for failure to file will not be assessed if you file your return on or before the extended due date.

If more time is required, requests for additional time beyond the automatic six-month extension to file must be submitted in writing prior to the expiration of the six-month period.  Generally, the total extension period cannot exceed eight months.

Note that an extension to file your Maine return is not an extension for payment of tax.  To avoid penalties for late payment, you must pay at least 90 percent of the tax you owe by the original return due date.  Remit your estimated tax payment with the extension payment voucher available at www.maine.gov/revenue/forms.  Interest will be charged on any unpaid tax balance remaining after the original return due date regardless of any extensions to file. 

See the chart below for original and extended due dates for filing the following 2018 Maine tax returns with regard to the automatic six-month extension.

Due Dates for Filing Certain 2018 Maine Tax Returns

*Note that an extension of time to file a return does not extend the time to pay any tax due.

Notice of Bureau Policy Change
Business Equipment Tax Exemption Program
Business Equipment Tax Reimbursement Program

MRS has implemented a policy change regarding eligibility of certain business equipment in the Business Equipment Tax Exemption (BETE) and the Business Equipment Tax Reimbursement (BETR) programs.  Interior decoration, such as artwork, and removable window air conditioners are now considered eligible for exemption under the BETE and BETR programs.

The BETE program, enacted in 2006, exempts from taxation tangible personal property that is subject to depreciation and that is used or held for use exclusively for a business purpose by the person in possession of the equipment.  The BETR program provides reimbursement from the State to taxpayers for a portion of property taxes paid on eligible property generally placed in service between April 2, 1995 and April 1, 2007.  Eligible business equipment for both programs includes “property that is affixed or attached to a building or other real estate if the property is used primarily to further a particular trade or business activity.”  36 M.R.S. §§ 691 and 6651. 

Previously, MRS interpreted the phrase “affixed or attached” broadly, encompassing equipment that is attached, but not permanently attached, to a building, such as interior decoration and removable window air conditioners.  Because these items ordinarily do not further a particular trade or business activity, MRS previously denied BETE exemption and BETR reimbursement for this property

After further review, MRS has determined that the phrase “affixed or attached” should apply only if equipment is permanently attached to a building or real estate.  Since interior decoration and removable window air conditioners are not permanently attached to a building, the requirement for that property to further a particular trade or business activity is not applied.  As a result, MRS now considers otherwise eligible interior decoration and removable window air conditioners to be eligible for exemption under the BETE program and reimbursement under the BETR program.