Legislators Begin Federal Tax Conformity Debate

Members of both the Appropriations and Taxation committees met on October 17th for a briefing on the effect of changes to federal income tax Laws on Maine income tax laws and revenue.  In August. Governor Janet Mills proposed conforming on several items that affect 2025 taxes but recommended not adopting numerous other changes that affect businesses and individuals.  Her proposed conformity items, several of which benefit small business owners, must be approved by the legislature when it convenes next year.

Legislators may decide to send her a different conformity proposal for signing into law. Republicans issued a press release calling for a public hearing in November on conformity items.  Meanwhile, the Maine Center for Economic Policy has called for raising taxes on “wealthy individuals and corporations” in order to support funding for various social and safety net programs.

The Property Tax Relief Task Force

Task Force members recently began their 15-month study of the rising property tax situation in Maine and potential options for relief of residential property owners.

Maine Revenue Services provided a “Property Tax Refresher” slide presentation that gives an essential foundation for understanding various components of property taxation and taxpayer relief programs. (See page 40 in this linked document: https://legislature.maine.gov/doc/11956.)

NFIB Maine will be urging the Task Force to examine cost-drivers prompting higher taxes.  NFIB believes it is very important to look for ways to reduce and avoid costs, as a small business owner would.  Look beyond ways to shift the burden and answer the question of why property taxes are so high and getting higher.

Another Task Force meeting is expected later this month. The group is required to file an interim report by January 15, 2026, and final report by December 15, 2026.