MAINE MONITOR • February 25, 2024
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 exemptions and simplify the process, but will cost the state about $10 million annually. Mills said 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.” Maine is among only 17 states and the only one in New England without a blanket exemption for nonprofits. The move would make more than 5,200 organizations newly eligible for sales tax exemption.