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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

City of Portland, Maine Approves New Outdoor Seating on Commercial St.

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City of Portland, Maine Approves New Outdoor Seating on Commercial St.


Now THIS is one of the cooler things I’ve seen a bar come up with in the Old Port in Portland. My good friends Roger & Zeke, who recently opened up the unique little dive bar that replaced Silver House called Porttown Public House, just recently got a very cool approval by the state of Maine for outside seating on Commercial St.

I’ve never seen anything like it, and I’m not just saying that because they’re my good friends. I remember 6 months ago they told me about the idea to create some kind of outside seating by the summertime, and 6 months later they delivered.

I was on a run downtown when I jogged past, stopped in my tracks, and said to myself “oh my god they actually did it”. It looks SO COOL, and it’s even cooler that they got the cities approval for the summertime. Check this out:

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You’re wondering if there’s going to be any sports on here though, aren’t you. The answer is absolutely. The guys installed a couple mini TV’s right inside the windows you see pictured above just incase you can’t see the HUGE TV’s they have hanging on the walls inside. Tust me, you can absolutely see those very clear from the outside stools already.. I tested it hehe.

Roger Zeghibe, the owner, and my dear friend who is also the owner of a bigger staple pub in Boston, Beantown Pub, said “Krissy, it’s starting to look like a cooler run-off of Beantown Pub, and everybody loves the Beantown Pub!”. He’s not wrong. This summer will absolutely be one for the books here. Go show them some love and tell them Krissy told you to hehe.

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Pictured above is Roger, and pictured below is the moment he told me he had a vision of creating outside seating for this bar 6 months ago! Cheers to getting a dream done guys!

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2024 Maine Savings Amphitheater Summer Waterfront Concerts Lineup

Here are the performers who will be coming to the Maine Savings Amphitheater on the Bangor Waterfront in the summer of 2024!

Gallery Credit: Jordan Verge

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Gallery Credit: Megan

 





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Maine Catholics celebrate installment of 13th bishop of Portland

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Maine Catholics celebrate installment of 13th bishop of Portland


Bishop James Thomas Ruggieri carries the pastoral staff after his ordination and installation as the 13th Bishop of Portland. Derek Davis/Staff Photographer

Incense wafted through the air of the Cathedral of the Immaculate Conception, silent as dozens of priests, bishops and other dignitaries began their slow procession through the sanctuary.

Among them was Bishop James Thomas Ruggieri, who bowed his head and lifted his hands to greet the hundreds of faithful Catholics who traveled to Portland on Tuesday to celebrate his ordination and installment as the 13th bishop of the Roman Catholic Diocese of Portland.

Jessica Ciszewski said she drove nearly five hours to from New Sweden, a small town in Aroostook County, with two of her children for what she called a once-in-a-lifetime chance to attend the event. She said the day felt like a celebration for the whole diocese.

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“It’s wonderful. The chant from the choir, the fellowship — I found myself almost moved to tears,” she said. “It’s like you’re being wrapped in joy.”

Ruggieri, 56, who comes to Maine from the Diocese of Providence, will now lead the more than 275,000 Catholics across the state.

David O’Brien and his wife, Linda, who attend church in the Holy Spirit Parish in Kennebunk, said they were grateful to attend the ceremony.

“It’s an important moment for the diocese and something I don’t expect I’ll see again,” he said. “You see the church in all of its glory and pageantry and magnificence.”

A HOLY TRADITION

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The two-hour ceremony of tradition and pageantry was both solemn and celebratory. The cathedral was filled to its 1,000-person capacity long before the procession began.

A woman adjusts a veil as the Cathedral of the Immaculate Conception fills before the ordination and installation of James Thomas Ruggieri as the 13th Bishop of Portland. Derek Davis/Staff Photographer

After Cardinal Christophe Pierre, an apostolic nuncio to the U.S., read the official mandate from Pope Francis calling Ruggieri to ordination as bishop, Ruggieri held the document above his head and walked slowly through the church showing it to the congregation.

Cardinal Sean O’Malley of the Archdiocese of Boston led Ruggieri through the ancient custom of questioning the bishop-elect about his resolve to fulfill the responsibilities of the episcopal ministry.

Ruggieri then lay prostrate on the floor in a sign of humility as the congregation prayed for him and the church.

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Those in attendance watched quietly — occasionally raising cellphones to capture quick photos — as archbishops and bishops lay their hands on Ruggieri in prayer, anointed his head with chrism and presented him with the Book of the Gospels. Ruggieri was also presented with his episcopal ring, miter and a pastoral staff that once belonged to David William Bacon, the first bishop of Portland.

After Ruggieri was led to the thrown-like chair behind the altar, marking his official installation as bishop, the congregation stood and applauded.

Bishop James Thomas Ruggieri leads Communion after his ordination and installation as the 13th Bishop of Portland. Derek Davis/Staff Photographer

In his remarks at the end of the Mass, Ruggieri expressed his gratitude to the pope, archbishop and other bishops and priests who advised and supported him. He also acknowledged his mother and brothers, who came to Maine for his installation, before sharing a story about a bishop who met Mother Teresa.

“She said, ‘Bishop, don’t get in God’s way,’” Ruggieri said. “I take those words to heart.”

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Jeanne Marie Leo said she came to Portland from Mount Desert Island with her husband, Anthony, and their four young children for the Mass. As lay Missionaries of Charity, they thought it was great that Ruggieri referenced Mother Teresa.

“It’s glorious to be here, especially with our kids,” she said. Ruggieri “is probably going to be confirming our kids and his episcopacy is going to shape the diocese my children grow up in. It’s a historic day.”

‘A LABOR OV LOVE’

Ruggieri had served as pastor at St. Patrick’s and St. Michael’s parishes in Rhode Island, where grew up and was ordained as a priest in 1995.

With help from parishioners and other supporters, Ruggieri founded St. Patrick Academy, a Catholic high school that allows families to pay what they can afford and 20% of students are first-generation immigrants, according to the academy.

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When he was announced as the next bishop in February, Ruggieri said that he loves Hispanic ministry and working in a parish with immigrants from many countries, including Burundi and Rwanda. That experience has prepared him to work with immigrants who attend Catholic churches in Maine, he said.

Sister Anna of the Sisters of the Curé in Stockton Springs takes a picture of Bishop James Thomas Ruggieri before his ordination on Tuesday. Derek Davis/Staff Photographer

Cardinal O’Malley paused early in the ceremony to thank outgoing Bishop Robert Deeley, wh0 submitted his resignation letter in 2022 at age 75, but stayed on until Ruggieri was chosen as his successor.

“I know how hard he has worked,” he said. “It was so obvious to all of us it was a labor of love.”

Deeley, who was appointed by Pope Francis in December 2013, will continue to reside in Maine as Bishop Emeritus. He led the diocese through ongoing lawsuits alleging the institution is responsible for dozens of cases of childhood sexual abuse at the hands of priests and other diocesan employees that often predated Deeley’s tenure.

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Judge dismisses lawsuit by mother who said school hid teen's gender expression

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Judge dismisses lawsuit by mother who said school hid teen's gender expression


PORTLAND, Maine (AP) — A federal judge dismissed a lawsuit brought by a Maine woman who accused school officials of encouraging her teen’s gender expression by providing a chest binder and using a new name and pronouns, without consulting parents.

U.S. District Judge Jon Levy acknowledged his decision that a mother such as Amber Lavigne “might expect school officials to keep her informed about how her child is navigating matters related to gender identity” but he concluded that she failed to establish legal claims for which the school district could be held liable.

The lawsuit filed last year was the latest to weigh a minor’s right to privacy when confiding in a mental health professional against a parent’s right to supervise their children’s health and education.

According to the lawsuit, a school counselor provided the chest binder and instruction on how to use it. The mother, who has since begun home-schooling her teen, said the school also began calling the 13-year-old by a different name and pronouns.

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The lawsuit contended the mother had a “right to control and direct the care, custody, education, upbringing and healthcare decisions of her children,” and that Great Salt Bay Community School in Damariscotta violated her constitutional right by keeping the student’s gender expression from parents.

The judge previously dismissed claims against individual school officials. The remaining claim against the school board was dismissed by the judge in his May 3 order.



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