The Assessing Department and Personal Property

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A Newsletter by the City of Saco, Maine	March, 2008	Return to newsletter index

The beginning of every year the assessing department requests (by mail) for all businesses located within Saco to submit a declaration list. A declaration list is an itemized listing of all personal property put in service to be used by a business on or after April 1st. The deadline to file the personal property declaration list is May 1. Personal property includes but is not limited to the following categories:

Furniture and Fixtures: Office furnishings such as desks, chairs, bookcases, file cabinets, tables and sofas. This category also includes fixtures specific to a business that may be attached to the real estate, but is generally removed when the business relocates.
Machinery and Equipment: Presses, tools, machining equipment, garage equipment, heavy-duty shelving and other machinery or manufacturing equipment, telephone equipment, typewriters, calculators, fax machines, copiers and other office items of this type, cargo trailers and any self propelled machinery that is not subject to excise tax.
Computer Equipment: CPUs, monitors, servers, network wiring, printers and other computer type equipment.
Signs: A business advertisement sign that require a city permit to display.
Park Models: Park model campers that are housed year round within the City of Saco, which if needed to be moved, would have to be done so by a professional.

The City of Saco Assessing Department would like to take this opportunity to make the public aware of some changes that will be taking place effective April 1, 2008 regarding personal property in the State of Maine. The State of Maine is implementing a new Program called the Business Equipment Tax Exemption (BETE).

What is the BETE Program?

BETE stands for Business Equipment Tax Exemption. Eligible business equipment (personal property) first subject to assessment on or after April 1, 2008 will be exempt from Maine personal property tax if an exemption request is submitted to the municipality. Eligible business equipment is property that would have ordinarily qualified for the Business Equipment Tax Reimbursement (BETR ) Program that was placed in service on or after April 1, 2007 but first subject to taxation on or after April 1, 2008 (except for equipment located at certain retail facilities).

All businesses (whether they are qualified for the BETE program or not) are still required to continue to provide the City of Saco's assessing department with a yearly declaration (an itemized listing of all personal property used in the business April 1, 2007 to April 1, 2008).

If a business wishes to apply for the BETE program, they must submit the applications for this exemption by May 1st of each year. Each year a business must reapply for the exemption. May 1st of each year is also the due date to file the declaration list. Failure to file the declaration list in a timely manner, including any extensions of time, may disqualify property from exemption for that tax year per Maine State law Title 36 subchapter 4-C section 693.

Does my business qualify for the BETE Program?

The BETE law states that the exemption program does not include property used in "retail sales activity" located in a "retail sales facility." Retail sales activity includes the selection, purchase or rental of goods or services. Retail sales facility is a structure used to serve customers who are physically present to choose, purchase or rent goods or services. However if your business involves the performance of services where the delivery of the service is not close together in time with the selection and purchase of the services by retail customers, then your equipment is not considered as "retail sales activity" and would be eligible for the exemption program.

Maine Revenue Services cites the following examples of non-retail businesses whose property under most circumstances will qualify for the BETE program: Accounting firms, Law firms, Medical laboratories, Banks, Computer consultants, Engineering, Insurance companies.

The following types of retail/service businesses are excluded from the BETE Program (Exemption) program in most circumstances, but are eligible for the BETR (Reimbursement) Program: Hair salons/Barber shops, Automotive Repair Shops, Laundromats, Restaurants, Gas Stations, Hotels/Motels/B&B, and Health Clubs.

What items do not qualify for the (BETE) program?
Items that do not qualify for the BETE Program include office furniture, tables, chairs, desks, bookcases, filing cabinets, office partitions, lamps and lighting fixtures, gambling machines, devices including repair and replacement parts, improvements that further a particular trade or business activity.

Some businesses, primarily public utilities and communications businesses (paging, cell phones, cable television, satellite TV, etc) are specifically excluded from the exemption program. These businesses are also excluded from the reimbursement (BETR) Program. For other types of businesses, such as construction the eligibility for BETE has not yet been determined by Maine Revenue Services. One factor may be whether or not the business has a "retail sales facility." If you have any questions or concerns regarding your business' eligibility for the BETE program, please contact Maine Revenue Services, (BETE) Property Tax Division at 207-287-2011.