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Study Commission to Look at Taxing Nonprofits

by Brenda Peluso

During late session budget negotiations, the Republican Caucus introduced a new tax on nonprofits to offset the cost of partially restoring municipal revenue-sharing to the budget. They called it the “Economic Crisis Assessment” which would have applied to a broad swath of nonprofits and was designed to raise $100,000,000 per year for at least two years.  Read our earlier blog post for details on that proposal.

This harmful proposal has been removed from the budget, but it has instead been turned into a study commission.  The “Nonprofit Tax Review Task Force” is tasked with evaluating “…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 9 member Task Force will include a representative from MANP, one from the Maine Municipal Association, and 2 stakeholder seats, to be appointed by the Governor, in addition to the members from the legislature and the Department of Administrative and Financial Services.  The language for this task force can be found in Part AA of the budget.

Here is how you can help:

  • Use the information from our earlier blog post to calculate the financial impact on your organization. Send that information to me by e-mail along with your thoughts on how this would impact your organization and those you serve, as well as any other thoughts around fairness, effectiveness, etc.
  • Invite your legislators to visit your facilities/property during the summer recess. This is the perfect time to share with them the important work you are doing in their communities for their constituents.   Watch your e-mail next week for more information about hosting legislative visits.

Watch this blog and our NonprofitMaine Weekly e-newsletter for updates on this important issue.

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