Sec. 1. 36 MRSA §652, sub-§1, śC, as amended by PL 1997, c. 442, §3, is further amended by amending subparagraph (1) to read:

(1) Any corporation claiming exemption under paragraph A must be organized and conducted exclusively for benevolent and charitable purposes;.__For purposes of this subparagraph, "benevolent and charitable purposes" means that the corporation:

(a)__Provides a significant portion of its services to a substantial class of persons who are the legitimate recipients of charity; or

(b)__Otherwise relieves the government of its burden to care for or advance the interests of its citizens;

Sec. 2. Guidelines. By January 1, 2002, the Department of Administrative and Financial Services, Bureau of Revenue Services shall prepare guidelines to assist municipal assessors in determining whether corporations qualify for property tax exemption as benevolent and charitable institutions under the standards provided in this Act. The bureau shall provide copies of the guidelines to municipal assessors in each municipality and to the Joint Standing Committee on Taxation.

SUMMARY

This bill establishes standards of eligibility for property tax exemption for a benevolent and charitable institution. The bill also requires the Department of Administrative and Financial Services, Bureau of Revenue Services to prepare guidelines to assist municipal assessors in determining eligibility for exemption as a benevolent and charitable institution.