# Maine LD 68: An Act to Amend the State Tax Laws Maine LD 68, An Act to Amend the State Tax Laws, is a 132nd Maine Legislature (2025-2026) House bill sponsored by Kristen Cloutier (Democratic); status signed, last action 2025-06-12 (Signed by Governor, ACTPUB Chapter 271); PRIA reads it as touching household money (as of 2026-10-17). - Canonical: https://policyrisk.com/state-bill/ME-LD68-132 - As of: 2026-10-17 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Maine LD 68 - State: Maine - Session: 132nd Maine Legislature (2025-2026) - Title: An Act to Amend the State Tax Laws - Status: signed - Chamber: House - Introduced: 2025-01-06 - Last action: 2025-06-12, Signed by Governor, ACTPUB Chapter 271 - Sponsor: Kristen Cloutier (Democratic) - Cosponsors: 0 - Subjects: REVENUE SERVICES BUREAU, REVENUE SERVICES BUREAU - PROCEDURES - Touches household money: yes - Roll calls: 2 (91 yes, 80 no in all) - Economic provisions PRIA read: 9 ## Summary No summary available. ## Bill overview: provisions PRIA read - More flexibility in Pine Tree jobs baseline: benefit, medium. If your business qualifies for the Pine Tree Development Zone program, the state can adjust your base level of employment used for benefits. The law replaces the old fixed averaging method. This can help you qualify for or keep employment‑tied tax incentives. - Vehicle sales to tribes counted on tribal land: benefit, low. Starting January 1, 2026, a motor vehicle sale to a tribal member or a tribal entity is sourced to tribal land if the vehicle goes to tribal land right away. Treating the sale as on tribal land can remove Maine sales tax on the sale. Short‑term leases of less than one year are not covered. - New May 1 property exemption deadline: cost, medium. You must file for a property tax exemption by May 1 each year. The State Tax Assessor provides the form before April 1. You can request an extension of up to 3 months in writing for good cause before taxes are committed. If you miss the deadline or an approved extension, you can lose the exemption… - More casual rentals now taxed: cost, medium. The law taxes more casual rentals and sales. It covers trailers, truck campers, motor vehicles, special mobile equipment, watercraft, and aircraft. Rentals for fewer than 15 days in a year are excluded, unless you offer more than one unit of the same type. If you own more than one unit of the same… - Early 457(b) withdrawals lose deduction: cost, low. Distributions from a 457(b) plan before age 55 are not eligible for the Maine deduction. An exception applies only if the payments are a series of substantially equal periodic payments for your life or joint lives. Most early cash‑outs now increase your state taxable income. - Easier for Maine to file tax liens: cost, low. The State Tax Assessor can record tax lien notices at a registry of deeds without a notarized acknowledgement. This applies to liens used to collect state taxes under the listed laws. It makes it easier and faster for the state to place a lien on property when taxes are owed. - Nonresident boat rentals lose tax break: cost, low. Beginning January 1, 2026, leasing or renting a watercraft to a nonresident is not tax‑exempt. The lessor must collect sales or use tax. Nonresident renters pay the tax on these rentals. This change does not affect boat sales, which are covered by separate rules. - Partnership audits: earlier interest, broader years: cost, low. A year is a “reviewed year” if the partnership files an administrative adjustment request or is audited at the partnership level. Interest and penalties on resulting tax start on the 15th day of the third month after the reviewed year ends. Partnerships may owe more interest if they delay payment. - Employment tax fund excludes some withholding: cost, low. The state excludes certain income tax withholding from the calculation of payments to the Employment Tax Increment Financing fund. Withholding tied to qualified employees whose wages already support reimbursements to a qualifying business is not counted. This can lower payment amounts tied to jobs… ## Sponsors and cosponsors - Sponsor: Kristen Cloutier (Democratic), House ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2025-06-05 | Senate | ACCEPT REPORT 'A' OUGHT TO PASS | pass | 18 | 14 | | | 2025-06-04 | House | ACC REPORT "A" OTP | pass | 73 | 66 | | ## Actions (7) - 2025-06-12: Signed by Governor, ACTPUB Chapter 271 - 2025-06-09: PASSED TO BE ENACTED, in concurrence. (Senate) - 2025-06-09: PASSED TO BE ENACTED. Sent for concurrence. ORDERED SENT FORTHWITH. (House) - 2025-06-05: Reports ReadOn motion by Senator GROHOSKI of Hancock Report A Ought to Pass Report ACCEPTED. PREVAILED Roll Call Ordered Roll Call Number 375 Yeas 18 - Nays 14 - Excused 3 - Absent 0 Bill READ ONCE. Under suspension of the Rules, READ A SECOND TIME and PASSED TO BE ENGROSSED in concurrence. (Senate) - 2025-06-04: Reports READ.On motion of Representative CLOUTIER of Lewiston, REPORT A Ought to Pass was ACCEPTED.ROLL CALL NO. 331(Yeas 73 - Nays 66 - Absent 12 - Excused 0)The Bill was READ ONCE.Under suspension of the rules, the Bill was given its SECOND READING without REFERENCE to the Committee on Bills in the Second Reading.The Bill was PASSED TO BE ENGROSSED. Sent for concurrence. ORDERED SENT FORTHWITH. (House) - 2025-03-21: Carried over, in the same posture, to the next special or regular session of the 132nd Legislature, pursuant to Joint Order SP 519. (House) - 2025-01-06: Received by the Clerk of the House on January 6, 2025.The Bill was REFERRED to the Committee on TAXATION pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401. (House) ## Bill text - Enacted: [PDF](https://legislature.maine.gov/legis/bills/getPDF.asp?paper=HP0032&item=4&snum=132) - Introduced: [PDF](https://legislature.maine.gov/legis/bills/getPDF.asp?paper=HP0032&item=1&snum=132) ## Related bills - LD 1522: An Act to Establish the Maine Eviction Prevention Program (failed) - LD 1665: An Act to Provide Property Tax Relief to Maine Families (failed) - LD 1872: An Act to Reinvest in the Pension Funds of the Maine Public Employees Retirement System (failed) - LD 2067: An Act to Include Community Mental Health Workers Under the 1998 Special Plan for Retirement (failed) - LD 1611: An Act to Decrease the Retirement Contributions Required for Teachers and State Employees (failed) - LD 1294: An Act to Expand the Dependent Exemption Tax Credit (failed) ## Sources - [Enacted (PDF)](https://legislature.maine.gov/legis/bills/getPDF.asp?paper=HP0032&item=4&snum=132) - [Introduced (PDF)](https://legislature.maine.gov/legis/bills/getPDF.asp?paper=HP0032&item=1&snum=132) ## Related - [LD 1522: An Act to Establish the Maine Eviction Prevention Program](https://policyrisk.com/state-bill/ME-LD1522-132) - [LD 1665: An Act to Provide Property Tax Relief to Maine Families](https://policyrisk.com/state-bill/ME-LD1665-132) - [LD 1872: An Act to Reinvest in the Pension Funds of the Maine Public Employees Retiremen…](https://policyrisk.com/state-bill/ME-LD1872-132) - [LD 2067: An Act to Include Community Mental Health Workers Under the 1998 Special Plan f…](https://policyrisk.com/state-bill/ME-LD2067-132) - [LD 1611: An Act to Decrease the Retirement Contributions Required for Teachers and State…](https://policyrisk.com/state-bill/ME-LD1611-132) - [LD 1294: An Act to Expand the Dependent Exemption Tax Credit](https://policyrisk.com/state-bill/ME-LD1294-132) - [Maine bills](https://policyrisk.com/states/maine/bills) - [Maine state hub](https://policyrisk.com/states/maine) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/ME-LD68-132 (as of 2026-10-17).