Equal tax treatment among Wabanaki Nations poised to come to fruition this year
After a 2022 change left out the Mi'kmaq Nation from reform, legislation to ensure equal tax treatment among all of the Wabanaki Nations secured the approval of both chambers of the Maine Legislature this week.
LD 982, sponsored by Sen. Rachel Talbot Ross (D-Cumberland), passed the House of Representatives and Senate on Tuesday without roll call votes.
The bill would exempt the Mi'kmaq Nation from state sales and income tax for activities occurring on tribal trust or reservation lands and allow the Tribe to generate sales tax revenues from sales on their own lands — the same rights afforded to the other Wabanaki Nations.
The Houlton Band of Maliseet Indians, the Passamaquoddy Tribe and the Penobscot Nation were granted these rights under a 2022 tax revision, also proposed by Talbot Ross, which brought them on par with the rules that apply to other tribal nations throughout the country.
Compared to other federally recognized tribes, the Wabanaki Nations are treated more akin to municipalities than sovereign nations because of the 1980 Maine Indian Claims Settlement Act.
But the Mi'kmaq Nation was not referred to in the Settlement Act and only received federal recognition later in 1991. Last session, the Legislature passed a law known as The Mi'kmaq Nation Restoration Act that put the Tribe on par with the rest of the Wabanaki Nations.
LD 982 therefore builds upon the restoration act and the tax revision.
This change was previously attempted last session with legislation proposed by State Treasurer Joseph Perry, then representing Bangor in the Maine House. While that bill received favorable committee and chamber votes, it got caught up in end-of-session procedural fights and ultimately died without final action when lawmakers adjourned.
The bill this session ultimately becoming law is not yet guaranteed. It has several associated costs, which means it's likely to go to the appropriations table, where bills with fiscal notes that are not already provided for have to vie for funding.
This bill would decrease the state's general fund by $4,750 in fiscal year 2025-26 and $45,150 in fiscal year 2026-27. It would also result in ongoing annual transfers of $500 to the Mi'kmaq Sales Tax Fund and result in revenue decreases to the Local Government Fund. There would also be a one-time cost — $19,300 — to fund computer programming costs associated with the provisions of this bill.
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