DAFS proposes independent Office of Tax Appeals to streamline Maine appeals process

The Joint Standing Committee on Taxation heard departmental testimony and public comment on LD 2178 on Feb. 11, 2026. The administration’s Department of Administrative and Financial Services (DAFS) proposed replacing the part‑time, three‑member Main Board of Tax Appeals with a full‑time independent Office of Tax Appeals staffed by hearing officers and streamlining aspects of the State Board of Property Tax Review.

DAFS Deputy Commissioner Anya Trendy told the committee the bill is intended "to simplify and modernize the tax appeals process," and summarized three central changes: it "replaces the part‑time three‑member Main Board of Tax Appeals with an independent Office of Tax Appeals comprised of full‑time hearing officers," it reduces panel size and expands the State Board of Property Tax Review’s jurisdiction for certain nonresidential cases, and it directs the Maine Revenue Services (MRS) Office of Tax Policy to study further improvements and report back to the legislature. Trendy said the administration’s review involved substantial stakeholder input and added that the bill’s preliminary administrative costs are "nominal."

Why it matters: advocates for a more professional appeals process say full‑time hearing officers could speed case resolution and raise consistency of decisions. Trendy and DAFS argued the changes preserve independence from Maine Revenue Services while making the process more accessible and less resource‑intensive for the state and taxpayers.

Key details and timeline: under the department’s proposal, the Main Board of Tax Appeals would be terminated and replaced by a hearings office effective Sept. 15, 2026; modest statutory changes to the State Board of Property Tax Review would take effect Jan. 1, 2027. The administration described the proposal as largely a reorganization of existing staff—many current appeals staff would become hearing officers rather than creating new positions.

Public comment and concerns: tax practitioner John Block (Portland) testified neither for nor against the bill but described Maine’s property tax appeal system as a "Byzantine construct" that requires navigation of four to five levels of appeal. Block supported creating a professional appeals office in place of the Main Board of Tax Appeals and said parts of the bill are useful (for example, allowing certain nonresidential taxpayers to skip local boards), but he objected to provisions he said would create inconsistent jurisdictional limits across towns. He urged that any study include named participants from the property tax bar, assessing officials and the business community rather than only internal staff consultation.

Committee questions focused on backlog history, how staff would transition, measures to assure independence from MRS, and whether a single hearing officer decision model could reduce safeguards afforded by multi‑member panels. Trendy acknowledged those concerns and said the administration would provide additional data and an organizational flowchart for the work session.

Next steps: the committee closed the public hearing on LD 2178 and asked DAFS and MRS staff to provide follow‑up materials, including case and appeals statistics, a staff/role flowchart and further fiscal detail. No final committee action on LD 2178 was taken during this session; DAFS representatives said they would continue engagement with stakeholder groups as details are refined.

Ending: the record shows the administration intends the bill to speed adjudication while preserving judicial appeal rights; committee members requested additional data on appeals outcomes and on safeguards if the state moves to individual hearing‑officer decisions.