An Act To Change The Calculation For Municipal Service Charges For Tax-Exempt Organizations

This bill changes how Maine municipalities calculate service charges for tax-exempt organizations (like non-profits, religious groups, or hospitals) that own property. It replaces a previous limit of 2% of an organization’s gross revenue with a new limit of 20% of the property’s assessed value (the tax-based value of the land/building). The charge must reflect the actual cost of municipal services provided to the property (such as trash collection or road maintenance), and revenue must fund those services. Municipalities must apply the charge equally to all similar organizations and require an audit of the organization’s prior year revenues to qualify for the new limit. The changes take effect on January 1, 2027.