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Maine considers exempting all nonprofits from sales tax

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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.

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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.”

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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.

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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.”

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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.

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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. 

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“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.





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Maine

You drew a Maine moose permit. Here’s what to do right now.

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You drew a Maine moose permit. Here’s what to do right now.


For many hunters, drawing a Maine moose permit is a once-in-a-lifetime opportunity. After years — and sometimes decades — of applying, the excitement of seeing your name among the winners quickly turns into a new challenge: planning for the hunt.

Whether you’re going on your first moose hunt or preparing for another trip into the Maine woods, there are several important steps permit winners should take as soon as possible.

Hire a registered Maine guide

Many permit winners hire a registered Maine guide to help locate a moose, scout hunting areas and navigate unfamiliar country. You’re paying for their knowledge, experience and time spent scouting before the season ends. Even if you’re a Maine resident, hiring a guide should be a consideration. Most hunters don’t have the time to make multiple scouting trips, and trail cameras aren’t always an option because cell service is limited or nonexistent in many hunting areas.

If you’re considering hiring a guide, don’t wait too long. Available openings often fill up the night of the lottery.

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Book lodging for your moose hunt

Sporting camps, cabins, campgrounds and hotels near popular moose hunting areas will also fill up quickly. If your hunt will take place hours from home, securing lodging should definitely be one of your first priorities. Waiting until summer will leave you with fewer options and a longer commute to your hunting area.

Find a meat processor

The state maintains an official list of moose meat processors. The last thing you want to be doing is calling around on a warm September day trying to find a butcher willing to take your moose. Processors can only handle so many animals each season, and much like guides and lodging, many fill their schedules quickly. Calling ahead and having a plan in place can save a lot of stress after a successful hunt.

Line up your hunting partners and helpers

If you’re not hunting with a guide, it’s helpful to know who will be accompanying you. Aside from sharing the experience, friends and family can help scout, call, spot animals, film the hunt and retrieve a harvested moose.

How will you retrieve the moose?

Depending on where the animal is harvested, you may need an ATV, side-by-side, trailer, winch, ropes or other equipment to retrieve it. Keep in mind that ATVs and side-by-sides are prohibited in the North Maine Woods, so you may need to quarter and pack the moose out instead. In that case, game bags, packs, knives and saws will be essential, while items such as a jet sled or game cart may help make the job easier.

Gather your moose hunting gear  

In addition to your weapon, consider what you’ll need for the hunt itself. Tarps, coolers, headlamps, GPS units, an inReach, radios, rain gear and extra fuel can all make a hunt more comfortable and efficient.

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If you’re planning on getting away from the roads, you may need or want a wall tent. You’ll also need cots or other sleeping gear, a heating source, water, cooking gear and emergency supplies. A spare tire, jumper cables, chainsaw and basic tools can also be invaluable when traveling remote logging roads.

Prepare for meat care and transportation

Make plans to have coolers, ice, transportation and storage well before opening day.

Sight in your rifle or practice with your bow

Don’t be the hunter who misses because their scope was 8 inches off, got bumped during travel or hasn’t been checked since last season. Confirm your rifle is properly sighted in before the hunt, and shoot again after arriving in camp. Stock up on ammo and spend time practicing from realistic field positions.

Don’t overlook shooting sticks, either. Many hunters regret leaving them behind. Shot opportunities are often farther than expected, and a stable rest can make all the difference when anticipation and excitement start to take over.

The same applies if you choose to bring a bow. Reps, shooting from different positions and accurately judging distance can all improve your chance of success.

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Scout your zone

If you don’t hire a guide, make sure you’re familiar with your hunting area. Not only will you likely run into other hunters during the week, you may arrive at your preferred spot only to find another truck already parked there. Having backup options is key.

Conditions also vary dramatically from year to year, so what worked for hunters last season may not work this fall.

Depending on the weather, moose may be farther away from roads, requiring hunters to do more walking. Last September’s hunt saw lower success rates in every wildlife management district compared to 2024.

Moose biologist Lee Kantar noted that drought conditions and slightly earlier September dates can lead to changes in moose behavior. Drought and warm weather likely affect moose movement, feeding patterns and activity levels, resulting in moose staying closer to areas with moisture and green vegetation.

“If bulls are not widely searching for cows, if bulls and cows are bedding or ruminating more in dark growth during the day, and if hunters do not adjust and ‘go in after them’, then success will drop,” Kantar said

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The same challenges can affect October hunts.

Study maps, use onX, review aerial imagery and learn access roads before the season begins. Many logging roads shown on maps are no longer passable or have been blocked off.

Prepare physically for the hunt

Even hunters who plan to hunt from roads may end up walking several miles in a day.

Just getting into a producing moose area can require long walks down logging roads, skid trails or old cuts. Moose hunting can be physically demanding, with long days outdoors, rough terrain, bugs and heavy lifting. Spending a few months improving your fitness can make the experience more enjoyable.

Create a checklist

Make a list of everything you’ll need including licenses, permits, firearms, ammo, retrieval equipment, coolers, camping gear, food, water and emergency supplies. The more organized you are, the smoother the hunt is likely to be.

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Two charged with assault after boater dies overboard in Hurricane Sound

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Two charged with assault after boater dies overboard in Hurricane Sound


VINALHAVEN, Maine (WGME) — Two boaters are charged and a third is dead after he went overboard in Downeast Maine.

Just before 5 Thursday, Maine Marine Patrol says a boater fell overboard in “Hurricane Sound” near Vinalhaven.

He’s identified as 57-year-old Marshal Ames.

Marine Patrol says before they arrived, a good Samaritan from Hurricane Island was able to reach Ames and began CPR, but he was pronounced dead by first responders.

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Officers say when the other crewmembers arrived on shore, they got into a fight with them.

The crew members, 39-year-old Geoffrey Barrett and 27-year-old Theodore Lane, are facing charges including assault.

The Maine State Police major crimes unit is now part of the investigation.



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Local control is holding education back in Maine | Opinion

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Local control is holding education back in Maine | Opinion


Scott A. Harrison, Ed.D., M.B.A., is a senior advisor at The Harrison Group, a consultancy based in Yarmouth.

Maine has long valued local control in education. That tradition reflects an important belief that communities should have a strong voice in shaping their schools. But local control should not prevent us from asking a harder question: Are there core functions that could be delivered more effectively through a single statewide framework?

One of the most important is educator evaluation and professional growth. Maine law already recognizes the importance of this work. Under Title 20-A, Chapter 508 (Educator Effectiveness), districts must implement performance evaluation and professional
growth systems that evaluate educators, assign effectiveness ratings and support
professional growth.

The law further requires superintendents to use those ratings to inform key human capital decisions, including recruitment, hiring, induction, mentoring, professional development, compensation, assignment and dismissal. In short, educator evaluation is not intended to be a compliance exercise. It is intended to be a primary lever for the continual improvement of teaching and learning.

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In 2012, LD 1858 sought to advance that vision by giving districts broad flexibility to design their own systems. Districts could choose instructional frameworks, establish measures of effectiveness and determine how evaluators would be trained and calibrated. The goal was to balance local autonomy with professional accountability.

More than a decade later, however, the evidence suggests that flexibility alone has not produced consistent results.

My research involving 130 educators across four Maine school districts found only modest perceptions of performance evaluation and professional growth systems’ effectiveness.

On a four-point scale, average ratings ranged from 2.48 to 2.99. While educators generally agreed that districts provide individualized growth plans and can differentiate levels of instructional effectiveness, they rated several critical implementation areas notably lower, including instructional coaching, evaluator training, feedback quality, evaluator calibration and the use of evaluation data to inform professional learning and personnel decisions.

Although the sample was relatively small, the findings closely mirror what I have observed while working with predominantly rural Maine districts over the past decade.

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The qualitative findings were equally revealing. Teachers and administrators described systems that are often cumbersome, inconsistently implemented and difficult to sustain. Educators reported spending significant time developing goals and documenting evidence, while administrators acknowledged that competing priorities frequently reduce evaluation to a compliance exercise rather than a meaningful opportunity for growth.

Participants cited insufficient training, inconsistent expectations, limited coaching support and weak connections between evaluation results and professional learning. Perhaps most significant, though not surprising given the realities of today’s schools, the primary obstacle appears to be not commitment, but capacity — the time, expertise and tools required to implement these complex systems with fidelity.

Designing and sustaining high-quality evaluation systems requires expertise in instructional leadership, observation and feedback, adult learning, professional development, data use and evaluator calibration. While some districts have built this capacity, many — particularly smaller and rural systems — have not. Even where expertise exists, time remains a major barrier.

Effective evaluation depends on regular observation, coaching, feedback and calibration. Yet for principals balancing instructional leadership with the daily demands of running a school, carrying out these responsibilities consistently can be extraordinarily difficult.

As a result, Maine has effectively asked more than 250 districts to independently build and maintain highly complex educator effectiveness systems. The outcome is predictable: uneven quality and implementation, and variable impact on teaching and learning.

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This raises an important policy question: Should every district continue to design, train, calibrate and maintain its own evaluation system, or would educators and students be better served by a common statewide framework supported by regional and state expertise?

A statewide approach would not eliminate local control. Districts would continue to make decisions about hiring, staffing, curriculum, budgeting and school improvement priorities. Instead, the state would provide shared infrastructure: a common instructional and evaluation framework, validated tools, evaluator training, calibration supports, professional learning resources and implementation assistance.

The benefits extend beyond evaluation. A common framework would create stronger alignment across Maine’s educator pipeline. Colleges and universities could align coursework, clinical experiences and assessments to the exact same standards used in schools while sharing responsibility for educator success beyond initial placement.

Preparation programs, districts and the state would become partners in a continuous system of educator development, creating mutual accountability for results and a stronger return on Maine’s investment in teacher preparation.

Such alignment matters. As systems thinker Peter Senge observed, people working within the same system tend to produce similar results. If we want more consistent outcomes for students, we must pay closer attention to the systems shaping educator practice.

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A statewide approach would not eliminate local control. Districts would continue to make decisions about hiring, staffing, curriculum, budgeting and school improvement priorities.

A common framework would establish a shared language and clearer expectations throughout the career continuum. It would also make continuous improvement easier. Rather than asking hundreds of districts to independently revise complex systems, the state could evaluate implementation, refine practices, share lessons learned and respond to emerging research. Educators have experienced too many short-lived initiatives that consume considerable time and effort before fading away.

A coherent statewide system would provide greater stability and more meaningful long-term improvement. The question is not whether local control matters. It does. The question is whether every district should be expected to independently build and sustain complex systems that require specialized expertise, significant resources and ongoing refinement.

If Maine is serious about improving outcomes for students, it should rethink which functions are best managed locally and which are better supported through statewide infrastructure. Educator effectiveness is one example. There are likely others.

In a previous op-ed here, I argued that Maine should reconsider whether teacher compensation is best negotiated district by district. The same question applies here. When critical human capital systems are essential to student success, a coherent statewide framework may be better positioned to advance equity, efficiency and effectiveness while preserving local decision-making where it matters most.

The goal is not less local control, but a smarter balance between local autonomy and statewide support — one that strengthens schools and improves outcomes for every student, regardless of geography.

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