Connect with us

Maine

Maine considers exempting all nonprofits from sales tax

Published

on

Maine considers exempting all nonprofits from sales tax


Gov. Janet Mills has proposed extending a sales tax exemption to all nonprofits operating in Maine, which state officials say will address inequities among organizations seeking exemption and simplify the tax exemption process, but will cost the state about $10 million annually.

Of the 47 states with sales tax, Maine is among only 17 — and the only one in New England — without a blanket exemption for nonprofits, according to a report released last month by Maine Revenue Services.

Mills said in a statement that extending the exemption to all nonprofits “eliminates the need for the legislature to pass a new statutory exemption for every nonprofit seeking tax-exempt status and is consistent with the treatment of nonprofits in most other sales tax states.”

The proposal, which is included in the governor’s supplemental budget, would make any nonprofit that is exempt from federal income tax under the Internal Revenue Service automatically exempt from state sales tax on items purchased as part of an organization’s mission.

Advertisement

The move would make more than 5,200 organizations newly eligible for sales tax exemption, according to the report.

Hospitals and churches have been exempt from the tax since it went into effect in 1951. The legislature has added several dozen categories to the list over the years, including volunteer fire departments, veterans’ service organizations, and nonprofit child care centers, nursing homes and historical societies. 

Maine Revenue Services still receives between 100 and 200 applications each year from nonprofits that think they qualify. Most are eventually approved, but “gray areas” in the law result in a “fair amount of confusion for organizations,” according to the report, and require staff to spend “time and resources on education, customer assistance, and administration to ensure that the law is carried out as intended.”

Source: Maine Revenue Services report.

Mary Alice Scott, public affairs manager of the Maine Association of Nonprofits, called the current law regarding sales tax exemptions “unusual, unfair, confusing and inefficient.”

“It makes sense for every 501(c)(3) organization to receive the same treatment when it comes to sales tax,” Scott told The Maine Monitor. “The IRS recognizes that they are all doing work for the public good; Maine should recognize that, too.”

Advertisement

Lawmakers in 2020 tried to pass a blanket nonprofit exemption as part of a bill that included other measures related to service provider tax and income tax, but the bill died in the House.

The blanket nonprofit exemption was proposed again last session, but was later amended to instead instruct Maine Revenue Services to study the impact of the measure.

Scott said the confusing nature of the existing system is likely why previous attempts to pass a blanket sales tax exemption have been unsuccessful: “Many organizations review the current list of exemptions and come away having no idea if they are included or not, so you can imagine it was confusing for lawmakers, too.”

A number of nonprofits testified in support of the blanket exemption last year. Many said the few hundred dollars spent on sales tax could make a significant difference if redirected to those they serve. 

The Maine Coalition Against Sexual Assault said sexual assault survivors can spend hours in the hospital when they go through forensic examination, and that when sexual assault centers accompany them, they put together bags of essential supplies such as sweatsuits, nail files, snacks and water. When the centers buy these items, they pay sales tax.

Advertisement

The coalition also manages emergency funds it gets from the federal government through the Victim of Crime Act for the work it does with survivors, Melissa Martin, public policy and legal director, told the Monitor.

The coalition uses those funds to buy essentials for people experiencing sex trafficking who don’t have stable housing. In one example of a $70,000 purchase for those uses, the coalition paid nearly $4,000 in tax.

Martin said a blanket exemption would allow nonprofits to spend more money on their service work and less time on administrative tasks related to applying for an exemption.

“Are nonprofits going to spend time getting that exemption or are they going to spend time doing their direct service work? I think most organizations have made the choice to spend the time doing their important direct service work,” she said.

Lisa Thomas-Willey, assistant to the executive director at Ruth’s Reusable Resources, which redistributes unwanted office supplies from businesses and gives them to teachers for their classrooms, said the current sales tax exemption system unfairly excludes some nonprofits, is inefficient for retailers and lawmakers, and “it is arbitrary and unclear why some nonprofits are included while others are not.”

Advertisement

Ruth’s Reusable Resources receives $10,000 to $15,000 annually for its Tools for School backpack program, but $550 to $780 of that grant goes to sales tax, Thomas-Willey said.

“We could provide 50-70 additional backpacks each year with the money we pay in sales tax for the school supplies.”

Trekkers, a youth mentoring nonprofit in Rockland that helps young people from rural Maine navigate adulthood, said it paid nearly $6,000 in sales tax in 2022, which was equivalent to 2 1/2 months of its meal budget to feed the students.

There are more than 7,000 501(c)(3) nonprofit organizations in Maine as of 2018, according to the Maine Association of Nonprofits. Most have annual expenditures of less than $100,000. Nonprofits employ more than 100,000 Maine workers.

A table showing the fiscal impact of a blanket 501 c 3 exemption for Maine by fiscal year. In 2025, the impact would be $3,998,000. In 2026 the impact would be $9,821,000. In 2027, the impact would be $10,119,000. In 2028 the impact would be $10,407,000.
Source: Maine Revenue Services report.

Maine sales tax law currently has 56 provisions exempting different types of organizations, most requiring the applicant to be a nonprofit, according to the state report.

“While these exemptions are valuable to the organizations that qualify, Maine’s current patchwork of narrowly crafted exemptions creates inequities between similar organizations and confusion for taxpayers, leaving some nearly identical organizations with different eligibility,” according to the Maine Revenue Service.

Advertisement

In a Feb. 15 presentation to the legislature’s Taxation Committee, Peter Lacy, an attorney with office of tax policy for the Department of Administrative and Financial Services, said that just since 2015 the legislature has approved exemptions for numerous groups, including veteran service organizations, heating assistance organizations, youth camps, nonprofit pet food assistance organizations, cemetery companies and areas agencies on aging.

In response to concerns the sales tax exemption could result in an additional loss of property tax to local communities, Lacy told committee members the measure would not impact a nonprofit’s status for property tax exemptions.

Rep. Joe Perry, D-Bangor, said that during his time on the committee, he’s reviewed numerous bills asking for nonprofit expansions and has never seen one come back and ask for additional property tax exemptions.

“I would have zero concern from my experience on the committee that this is a slippery slope,” he said.

The MRS report argues a clear standard will benefit taxpayers, lawmakers and the state by clearing up confusion and reducing the time spent on processing applications or considering exemptions. 

Advertisement

“To the extent possible, tax law should be simple and accessible to the public,” MRS wrote in the January report. “Similarly situated organizations should receive similar tax benefits, and a blanket exemption for 501(c)(3) organizations would be a significant step towards the goal of creating a fairer, simpler sales tax.”

The proposed exemption will next go before the Appropriations and Financial Affairs Committee as part of the supplemental budget.





Source link

Advertisement

Maine

Watchdog criticizes Maine’s management of billions in Medicaid funding

Published

on

Watchdog criticizes Maine’s management of billions in Medicaid funding


BANGOR (BDN) — Maine’s Medicaid program lacks the proper controls to manage the billions of dollars going to health providers across the state, according to an audit released Thursday.

The findings from State Auditor Matt Dunlap’s office come amid a torrent of calls for increased scrutiny of how the state spends its MaineCare dollars and allegations of fraud, which has prompted another battle between President Donald Trump’s administration and Gov. Janet Mills.

Front and center in the growing debate is the embattled Portland health care provider Gateway Community Services, which is currently under investigation for potentially defrauding MaineCare largely through overinflated and underdocumented claims for interpreter services.

Dunlap’s report doesn’t mention either Gateway or interpreter services, but it does warn the state that inadequate monitoring of MaineCare could lead to federal regulators finding Maine out of compliance with its regulations. The state disputed that, but the watchdog’s words could add heat to a tense dispute between the Mills and Trump administrations.

Advertisement

Republicans stretching from top Medicaid regulator and former TV personality Dr. Mehmet Oz to the Maine Legislature are pressuring Mills on the issue during her heated U.S. Senate primary. Dunlap himself is running in a Democratic primary for Maine’s open 2nd Congressional District.

The Maine Department of Health and Human Services paused MaineCare payments to Gateway in December while it investigated “credible allegations of fraud.” The pause came as a result of an audit by DHHS that included a review of 15,000 claims made by Gateway between March 2021 and December 2022.

Dunlap’s report said the Program Integrity Unit, MaineCare’s internal auditing arm, “may not provide adequate monitoring of all Medicaid services. Medicaid programs are jointly funded by states and the federal government, but administration of the programs are mostly left to states.

In recent months, Oz has taken an increasing interest in how Maine is overseeing its program. He sent a letter demanding detailed information regarding the state’s oversight of Medicaid spending, outlining concerns and mentioning a federal criminal case against two interpreters who are charged with defrauding the federal government by filing false tax returns.

The case alleges that two interpreters filed false tax documents with the federal government showing their companies were paid for interpreter services that didn’t happen. The third defendant in the case was an employee of the Lewiston-based Bright Future Healthier You, who died after she was charged.

Advertisement

Bright Future Healthier You was the largest biller of MaineCare for interpreting services in the last 10 years. The company itself has not been accused of any wrongdoing.

The case is the first case the federal government has brought in Maine since a 2021 report by a federal investigator that outlined a suspicious billing pattern for interpreter services. The report highlighted that the billing patterns seemed especially prominent among providers working with Maine’s Somali community and indicated widespread fraud within the MaineCare system.

Gateway was the second-highest biller of interpreter services in the last 10 years and has been the subject of numerous fraud allegations dating back to May 2025, when The Maine Wire, the media arm of the conservative Maine Policy Institute, first reported on claims from a former employee that Gateway falsified records.

Oz’s letter followed an audit performed by the U.S Department of Health and Human Services that found that Maine had made at least $45.6 million in improper Medicaid payments for support services for children with autism in 2023.

In November, widespread federal fraud prosecutions began in Minnesota, and with them, the employee, Chris Bernardini’s claims resurfaced in national conservative news outlets. Then, in December, U.S. Rep. James Comer of Kentucky, the top Republican on the House oversight committee, sent a letter to the U.S. Treasury that identified Gateway, along with its founder Abdullahi Ali, as targets in a broader welfare fraud investigation.

Advertisement

The Maine Department of Health and Human Services disagreed with Dunlap’s finding, saying it resulted from a “misunderstanding” of the federal regulations and how the department is structured. The department also said Dunlap’s findings discounted the regular ongoing checks the Program Integrity Unit undertakes on a more regular basis.

Dunlap said his office wasn’t persuaded by the department’s criticism and that the department “did not provide evidence of utilization control review procedures.”



Source link

Continue Reading

Maine

Potentially deadly virus for dogs is spiking in parts of Maine

Published

on

Potentially deadly virus for dogs is spiking in parts of Maine


WARREN, Maine (WWTW) – Dog owners are being urged to take steps to protect their pets from a potentially deadly virus.

The Midcoast Animal Emergency Clinic in Warren said on Tuesday that it is seeing a significant increase in canine parvovirus cases throughout the Midcoast and Augusta areas. Clinic staff also said they have been told about possible contamination at Quarry Hill Dog Park in Portland. Our media partner WMTW has reached out to city officials to learn more about the reported contamination there and mitigation efforts.

A spokesperson for the City of Augusta said there had been no formal notification from the state indicating a confirmed outbreak in the area, but that they had heard, anecdotally, of local cases.

The Kennebec Valley Humane Society did temporarily close in November due to an outbreak of parvo.

Advertisement

As of Wednesday, the city was not implementing any closures or restrictions at local dog parks, but officials were developing educational materials to help inform residents about canine parvovirus, including prevention and symptoms to watch for. These resources will be shared on the city’s website, social media channels, and posted at local dog parks.

What is canine parvovirus?

Animal experts say canine parvovirus (CPV, or parvo) is one of the most serious viruses that dogs and puppies can get. It typically causes severe illness in young and unvaccinated dogs. Parvo is spread by contact with contaminated feces. The virus can also live on surfaces that have been contaminated.

Parvo primarily affects the body’s rapidly dividing cells, meaning the intestinal tract and bone marrow are the most affected.

There is no specific cure for parvovirus in dogs and puppies, but there are treatments and vaccination is highly effective at preventing the virus when administered as directed by veterinarians.

In September of 2025, several animals in Houlton tested positive for the virus.

Advertisement

At the time, WMTW reported there had been an increase in cases in Maine since late 2024.

In the fall of 2025, the Eastern Maine Emergency Veterinary Clinic said dogs were being brought into their facility with the disease almost every week.

Puppies are most vulnerable to the virus, but older dogs that are unvaccinated and/or have compromised immune systems are also at risk.

If your dog is experiencing symptoms such as vomiting, diarrhea, and extreme lethargy, you are asked to quarantine them from other dogs immediately and seek veterinary attention.

Advertisement



Source link

Continue Reading

Maine

Hidden Gem Maine Japanese Restaurant Serves Sushi, Appetizers on Huge Wooden Boats

Published

on

Hidden Gem Maine Japanese Restaurant Serves Sushi, Appetizers on Huge Wooden Boats


How far would you be willing to travel for delicious food or a unique experience? What about both?

There’s a restaurant in Lincoln, Maine, called Ninja Japanese Steakhouse Express that you might want to consider visiting.

This small eatery specializes in express-style Japanese dining, boasting a 4.7/5 on Google, but it’s the visually mesmerizing and delicious super-sized sushi and appetizer platter boats that truly stand out.

Sushi Boat at Ninja Japanese Steakhouse Express in Lincoln, Maine

Sure, Ninja Japanese Steakhouse Express has a variety of foods to choose from when you’re feeling hungry, and there’s even some Chinese and Thai options as well.

Advertisement

But there’s something about ordering a meal that comes served up on a large wooden boat that sets the tone for a truly one-of-a-kind meal.

The Lincoln restaurant has that in both its sushi boat and Tokyo boat.

Let’s just say they are a feast for the eyes and mouth.

Looking at Ninja Japanese Steakhouse Express’ menu highlights its sushi boat options, either for one or two, at $86 or $99, respectively. So go big or go home, right?

When Did Ninja Japanese Steakhouse Express Open in Lincoln, Maine?

Ninja Japanese Steakhouse Express is a relatively new venture, having opened in 2024 in Lincoln.

Advertisement

Right from its grand debut, the restaurant noted on its Facebook page that from “savory Hibachi and Teriyaki to Bento boxes and Sushi, every dish is crafted with fresh ingredients and mouthwatering flavors that will have you coming back for more.”

Not only was there a positive response from the outset, but that excitement for the restaurant has continued today, especially with the incredibly fun boat service loaded with food.

Ninja Japanese Steakhouse Express

Ninja Japanese Steakhouse Express

Here’s just a few recent reviews:

“Great food, friendly service fair prices! Worth the 70 mile round trip! Will be seeing us again!”

Advertisement

“The portions are very generous, the food was very tasty and all ingredients were fresh and well prepared.”

“The man that was there running things and cooking was SO friendly and helpful and hospitable. He kept bringing things out for us to try and talked to us and treated us like family.”

READ MORE: Hit Up All 5 Maine Restaurants Featured on Guy Fieri’s ‘Diners, Drive-Ins & Dives’ for the Ultimate Road Trip

At the end of the day, you could order a normal plate of sushi, or you could go all in and get a super boat of it. Sounds like a drive to this hidden gem location for a special meal seems like an adventure worth setting sail for.

Hungry for some sushi?

Advertisement

40 Maine Restaurants That are Worth a Long Drive to Get to

Thanks to our great listeners we were able to compile a list of many of Maine’s great restaurants, cafes, pubs and bakeries that are worth a long drive to get to.

These great spots can be found across the state and waiting for you to give them a try.

How many have you been to?

Gallery Credit: Chris Sedenka

These Are 14 Must-Visit Hidden Gem Destinations in Maine

Gallery Credit: Megan

Advertisement





Source link

Continue Reading

Trending