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MaineLD 2188132nd Maine Legislature (2025-2026)HouseWALLET

An Act to Amend Certain State Tax Laws

Sponsored By: Daniel Sayre (Democratic)

Signed by Governor

SALES AND USE TAXSALES AND USE TAX - EXEMPT ITEMS

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Bill Overview

Analyzed Economic Effects

11 provisions identified: 5 benefits, 2 costs, 4 mixed.

Trust-held homes can qualify for tax deferral

A homestead held in a revocable living trust for your benefit counts as yours for property tax deferral. This lets you meet the program's ownership test without moving the home out of the trust. The change does not remove other eligibility rules or erase the property tax.

New depreciation tax timing for individuals

Maine changes tax adjustments for individuals claiming federal bonus depreciation on property covered by Maine's rules. The earlier income add-back rules cover tax years beginning in 2015 through 2024. Replacement rules apply to tax years beginning January 1, 2025, or later. Later deductions recover amounts added back, but cannot exceed those amounts. The law also updates adjustments when the property is sold or otherwise disposed of.

Tax payment certificates for former owners

Former owners named on a property tax lien can request a certificate after selling or otherwise transferring the property. They must prove payment of their agreed share of taxes under a written tax-splitting agreement. The certificate states that they owe no property taxes connected with that lien. Requesters pay the recording cost. The municipality keeps its other ways to collect unpaid taxes.

Later receipt date for mailed tax notices

State Tax Assessor notices sent by first-class mail count as received 7 days after mailing, rather than 3 days. Sundays and legal holidays do not count. This moves the legal receipt date later for deadlines measured from receipt.

Revised sales tax rules for mobility equipment

Crutches and wheelchairs now fall under the mobility-enhancing equipment sales-tax rules instead of their separate exemption. Durable medical equipment remains outside that definition. Qualifying prosthetic and orthotic devices remain exempt when sold under an order from a licensed health care practitioner.

Broader sales tax break for manufacturers

Businesses get a broader sales-tax exemption for materials that become ingredients or parts of goods made for sale or lease. The law removes the exclusion for goods leased for use in Maine.

Disability savings account tax subtraction limited

For tax years beginning January 1, 2020, or later, Maine limits the subtraction for qualified ABLE account earnings. These disability savings accounts must comply with the federal Achieving a Better Life Experience Act of 2014. The subtraction cannot exceed the account earnings included in your federal adjusted gross income.

One income tax subtraction ends

The law ends the individual income tax subtraction in 36 MRSA section 5122, subsection 2, paragraph L. People who previously qualified can no longer claim it under that provision. The supplied text does not identify the subtraction's purpose, amount, or eligibility rules.

Income tax thresholds vary by filer

For tax years beginning in 2025 or later, the law sets income tax thresholds based on filing status. The amount is $125,000 for single filers and married people filing separately. It is $187,500 for heads of household and $250,000 for joint filers and surviving spouses. The supplied provision does not identify which tax rule uses these amounts, so they do not establish a general filing exemption.

New sale process for state-foreclosed property

After legislative approval, the State Tax Assessor must use the sale process in section 943-C for tax-foreclosed real estate. This replaces the previously specified public-notice and competitive-bid process. The supplied text does not describe the replacement process's terms or its effect on sale prices.

New depreciation tax timing for corporations

Maine changes corporate tax adjustments for federal bonus depreciation on property covered by Maine's rules. The earlier income add-back rules cover tax years beginning in 2015 through 2024. Replacement rules apply to tax years beginning January 1, 2025, or later. Later deductions recover amounts added back, subject to limits based on those earlier additions. The law also updates adjustments when corporations sell or otherwise dispose of the property.

Sponsors & Cosponsors

Sponsor

  • Daniel Sayre

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

Actions Timeline

  1. Signed by Governor, ACTPUB Chapter 662

    4/13/2026

  2. PASSED TO BE ENACTED, in concurrence.

    4/6/2026Senate

  3. PASSED TO BE ENACTED. Sent for concurrence. ORDERED SENT FORTHWITH.

    4/2/2026House

  4. Report READ and ACCEPTED, in concurrence.READ ONCE.Committee Amendment "A" (H-920) READ and ADOPTED, in concurrence.Under suspension of the Rules, READ A SECOND TIME and PASSED TO BE ENGROSSED AS AMENDED BY Committee Amendment "A" (H-920), in concurrence.Ordered sent down forthwith.

    4/2/2026Senate

  5. CONSENT CALENDAR - FIRST DAYUnder suspension of the rules CONSENT CALENDAR - SECOND DAY.The Bill was PASSED TO BE ENGROSSED as Amended by Committee Amendment "A" (H-920).Sent for concurrence. ORDERED SENT FORTHWITH.

    3/30/2026House

  6. The Bill was REFERRED to the Committee on TAXATION in concurrence

    2/3/2026Senate

  7. Committee on Taxation suggested and ordered printed. The Bill was REFERRED to the Committee on TAXATION.Sent for concurrence. ORDERED SENT FORTHWITH.

    2/3/2026House

Bill Text

  • Amendment C-A (H-920), adopted by House & Senate

    PDF

  • Enacted

    PDF

  • Introduced

    PDF

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