MaineMaine sets service costs and calculates taxes for unorganized territories
The law sets $41,388,353 in service costs for Maine’s unorganized territories for fiscal year 2026–27 and uses revenue deductions to calculate their tax assessment.
What it does
For fiscal year 2026–27, the law sets $41,388,353 in service costs for Maine’s unorganized territories. Revenue deductions leave a $37,309,124 tax assessment before county taxes and an additional amount called overlay.
The law requires a $640,671 advance from federal recovery fund interest for services in Washington County’s unorganized territories. Local service costs must recover the money by June 30, 2027.
Argument forThe $640,671 advance could help cover Washington County services before the money is recovered through local service costs.
Argument againstThe advance could put repayment pressure on Washington County’s unorganized territories because their local service costs must recover the money.
More detail
The law sets service costs and deductions used to calculate the tax assessment for Maine’s unorganized territories. These amounts cover education, county services, and other local services in Maine’s unorganized territories. The $41,388,353 total includes $19,616,448 for state agencies, $16,922,928 for county services, $640,671 for Washington County borrowing repayment, and $4,208,306 for tax increment financing payments. The state agency total includes $16,828,325 for education. The calculation subtracts $4,079,229 in revenue deductions, including $2,517,668 from the fund’s available balance. The remaining $37,309,124 excludes county taxes and the additional amount called overlay. These amounts apply to services and reimbursements for fiscal year 2026–27. The law took effect upon approval on April 13, 2026.
The State Controller must transfer $640,671 in interest earnings to the Office of the State Auditor’s Unorganized Territory Education and Services Fund. The transfer provides a one-time advance to reimburse services in Washington County’s unorganized territories. The money comes from interest earnings on the Federal Expenditures Fund’s ARP State Fiscal Recovery Fund. The advance must be recovered through local service costs in Washington County’s unorganized territories. Recovered money must return to the same federal recovery fund. The transfer was required on or before June 30, 2026. Recovery is required on or before June 30, 2027.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 13Signed by Governor Janet MillsLatest
- Apr 6PASSED TO BE ENACTED - Emergency - 2/3 Elected Required, in concurrence.Passed 2nd Chamber
- Vote recorded ACCEPT MAJORITY OUGHT TO PASS AS AMENDED REPORT. Result: pass.Upper
- Apr 6Sent for concurrence. ORDERED SENT FORTHWITH.
- Apr 6PASSED TO BE ENACTED.Became Law
- Apr 6This being an emergency measure, a two-thirds vote of all the members elected to the House was necessary.
- Apr 6Ordered sent down forthwith.
- Apr 6Under suspension of the Rules, READ A SECOND TIME and PASSED TO BE ENGROSSED AS AMENDED by Committee Amendment "A" (H-897) in concurrence.Minor
- Apr 6Committee Amendment "A" (H-897) READ and ADOPTED.Minor
- Apr 6READ ONCEMinor
- Apr 6Roll Call Ordered Roll Call Number 874 Yeas 32 - Nays 1 - Excused 2 - Absent 0
- Apr 6ACCEPTANCE of The Majority Ought to Pass As Amended by Committee Amendment "A" (H-897) Report PREVAILED
- Apr 6Taken from the table by the President
- Mar 30On motion by Same Senator Tabled until Later in Today's Session, pending ACCEPTANCE of The Majority Ought to Pass As Amended by Committee Amendment "A" (H-897) Report.
- Mar 30Senator GROHOSKI of Hancock moved to ACCEPT The Majority Ought to Pass As Amended by Committee Amendment "A" (H-897) Report.
- Mar 30Reports READ
- Mar 26Sent for concurrence. ORDERED SENT FORTHWITH.
- Mar 26The Bill was PASSED TO BE ENGROSSED as Amended by Committee Amendment "A" (H-897).Minor
- Mar 26Under suspension of the rules, the Bill was given its SECOND READING without REFERENCE to the Committee on Bills in the Second Reading.
- Mar 26Committee Amendment "A" (H-897) was READ and ADOPTED.Minor
- Mar 26The Bill was READ ONCE.Minor
- Mar 26On motion of Representative SAYRE of Kennebunk, the Majority Ought to Pass as Amended Report was ACCEPTED.
- Mar 26Reports READ.
- Mar 25Reported Out - OTP-AM/OTP-AM
- Mar 11Voted - Divided Report
- Mar 11Work Session Held
- Feb 24On motion by Senator Grohoski of Hancock REFERRED to the Committee on TAXATION and ordered printed pursuant to Joint Rule 218, in concurrence.Minor
- Feb 24Report READ and ACCEPTED, in concurrence.
- Feb 24Sent for concurrence. ORDERED SENT FORTHWITH.
- Feb 24The Bill was REFERRED to the Committee on TAXATION and ordered printed pursuant to Joint Rule 218.Minor
- Feb 24Report was READ and ACCEPTED.
- Feb 24Representative SAYRE for the Administrator of the unorganized territory pursuant to the Maine Revised Statutes, Title 36, section 1604, reports that the Bill be REFERRED to the Committee on TAXATION and ordered printed pursuant to Joint Rule 218.Introduced
Taxes & Budget