An effort among Portland nonprofits and officials to pursue legislation to change how local tax exemptions are decided has come up short, leaving organizations looking for other ways to prepare for hefty tax bills.

After more than a dozen organizations, including the Maine Irish Heritage Center and Mayo Street Arts, lost their tax-exempt status over the past year, nonprofit leaders and local officials have been lobbying local lawmakers to remedy the situation.

However, with the current session wrapping up, and amid skepticism over whether changing state law is the best approach, nothing will move forward this year.

The affected nonprofits are now regrouping through a combination of fundraising, appeals and planning for the next legislative session in 2027, when leadership in Augusta could look different.

“I think we’ve expended everything we can expend, but we’ve certainly elevated the issue and gathered a lot of allies along the way,” said Eric Brown, executive director of the Maine Irish Heritage Center, which faces a $50,000 tax bill.

Brown has been leading the charge to address the revocations by zeroing in on state laws that govern how municipal tax assessors decide on exemptions. He believes the language is outdated and being interpreted in a different way in Portland than in other Maine cities.

The city has maintained that the revocations are the result of a thorough review of all tax-exempt properties in Portland stemming from the 2025 revaluation, and that its decisions are in line with state statute.

Sen. Rachel Talbot Ross, D-Portland, said she explored multiple avenues for addressing the assessment issue, and plans to continue work between sessions to discuss a bill that could be introduced in 2027.

“I’m disappointed that my proposal for an after-deadline bill was not accepted and that the Taxation Committee does not have an existing legislative vehicle that could address the issue during this session,” she said.

Many impacted nonprofits have been told revenue generated through ticketed events, weddings and liquor sales is keeping them from being considered a charitable organization despite maintaining the same core missions.

Those organizations also include Maine Public, Avesta Housing, Lion’s Club of Peaks Island, Clayton’s House, a hospitality home for cancer patients; and Portland Community Squash.

City officials have faced pressure to respond or push back against the assessor’s office, but have repeatedly said their hands are tied. Municipal tax assessors in Maine are considered agents of the state and must follow state statutes for assessments, but they are also granted the authority to make decisions on exemptions locally.

Mayor Mark Dion said while it’s a “dead issue for this session,” he’s committed to getting the issue back in front of legislators in the next session. 

He said the theme from lawmakers in Augusta was consistent: It appears to be a Portland problem and a quick solution could have statewide ramifications. Others told him that not all remedies have been exhausted, including appealing decisions in Superior Court.

Brown said he believes a simple amendment adding just three words — “culture, arts and heritage” — to the state statute would be enough for the Irish heritage center to be granted an exemption based on its mission.

Earlier this week, Councilor Ben Grant said he still had “a little bit of hope” of getting a bill across the finish line in Augusta. Grant took a different approach to the issue, hoping legislation could give local officials the authority to grant hardship abatements to nonprofits similar to what the council can approve for residential taxpayers.

“The idea is to give the city a role in very narrow cases,” he said.

Talbot Ross said her work between sessions will be “greatly informed” by the outcome of the upcoming reapplication process that several nonprofits are slated to undertake in the next few weeks.

Since March 2025, the city has revoked tax-exempt status for 48 parcels, 41 with immediate effect and seven deferred to April 1 of this year. Based on the assessed value of the properties, the city anticipates the revocations will add approximately $555,000 in tax revenue.

City spokesperson Jessica Grondin said the number of organizations impacted since March 2025 remains at 17. However, the city has continued its review of properties, and has requested information from several more nonprofits regarding their exemptions, which means the number could increase. The Victoria Mansion and The Hill Arts are among organizations that have confirmed receiving such requests.

Among the organizations that were affected, only Avesta Housing has appealed the decision, but Brown said the Maine Irish Heritage Center plans to appeal if its April 1 reapplication for an exemption is denied again.

In the meantime, organizations are rolling out fundraising efforts in case their applications are unsuccessful. In a newsletter to supporters this week, Mayo Street Arts asked for donations to offset an estimated $14,000 property tax bill that could be due this summer.

“For a small nonprofit arts organization, that is a meaningful and unexpected expense,” the statement said.

Brown said he will likely be following that same path soon but also hopes the impacted nonprofits and other stakeholders will convene in May to discuss next steps.

“Even though we had a discouraging conclusion, everyone I’ve spoken with, I’ve heard a ton of support, and there was a real effort to push this through,” he said.

The appearance of a stricter approach to exemptions from Portland assessing staff came as officials are also considering a Payment-in-Lieu of Taxes program that would ask the city’s larger nonprofits to make voluntary payments to the city, which led officials to table the PILOT debate due to public confusion over both issues.

The city will not take up discussion or vote on the PILOT program until June 1.