Committee unanimously supports Sen. Vitelli bill to support families using assisted living facilities

AUGUSTA – On Tuesday, a bill sponsored by Sen. Eloise Vitelli, D-Arrowsic, to remove a service tax on assisted living facilities was approved by the Legislature’s Taxation Committee. LD 527, “An Act To Exempt MaineCare Appendix C Private Nonmedical Institutions from the Service Provider Tax,” received a bipartisan, unanimous vote from the committee members present, with six members absent.

“I’m so glad the committee sees the value in removing this tax, which put serious strain on some of our most vulnerable families and community members,” said Sen. Vitelli. “Aging is already expensive, and an additional tax of up to hundreds of dollars a month to live in an assisted living facility is too much for some. We need to focus on making aging more affordable in Maine, and I’m hopeful this is a step toward getting us there.”

Maine is currently one of 40 states that have instituted a tax on nursing homes. This allows tax revenue to be generated based on the nursing home’s gross receipts. Nursing homes can then be reimbursed for the tax under Medicaid. However, taxes on private nonmedical institutions, also called assisted living facilities, cannot be reimbursed by Medicaid. LD 527 would remove state taxes for facilities that are not eligible for a reimbursement, resulting in savings for residents of those facilities.

LD 527 now faces votes in the Senate and House.