Portland schools to coordinate with city on bill allowing limits to nonprofit property tax exemptions

The Portland Public Schools Public & Legislative Affairs Committee voted to coordinate with the City of Portland and continue tracking a state bill that would allow municipalities to limit property tax exemptions given to nonprofit property owners.

Chair Sarah Lentz, chair of the committee, summarized the proposal as granting “a municipality the power to limit the amount of a property tax exemption given to a nonprofit,” and noted testimony arguing that large nonprofits use municipal services but do not contribute property tax revenue. Superintendent Scallon clarified the measure addresses property tax treatment, not nonprofit tax status, and cited examples of large local nonprofit landowners such as the University of Southern Maine and MaineHealth.

Members raising concerns said the bill’s broad language could “weaponize” exemptions against smaller nonprofits that rely on exempt status to cover operating costs. Board member Ali Ali and Board member Sautel both flagged political risk if local councils could change exemptions without specific carve-outs for small organizations. Lentz said the committee should “coordinate with the city” to learn how Portland is already handling PILOTs (payments in lieu of taxes) and to see whether local policy alignment or carve-outs are advisable.

The committee moved to add a coordination step with city staff and to continue to track the bill while gathering more information; the motion passed. Staff were asked to follow up with city legislative liaisons and report back to the committee before taking further action.

The committee recorded no formal endorsement or opposition; its action was to coordinate and track the proposal pending additional local input.