This bill creates the statewide property tax to impose a tax of 5 mills of the assessed value of real estate that is not exempt from taxation. This bill also establishes an exemption from the statewide property tax of the just value up to $1,000,000 for homesteads that are eligible for the Maine homestead property tax exemption, including being occupied by a permanent resident of the State as that person's permanent residence. The statewide property tax exemption applies only to the taxes assessed for the statewide property tax. The State Tax Assessor is directed to administer the statewide property tax in the same manner and under the same constraints as currently done for real property in the unorganized territory. The bill also creates 2 new funds, the Fund for Essential Programs and Services and the Early Childhood Education Fund. The Fund for Essential Programs and Services receives 50% of the revenue from the statewide property tax, which must be used to provide funds to school administrative units that do not achieve the annual target for the state share percentage of the statewide adjusted total cost of the components of essential programs and services, if that shortage is the result of a municipality within that school administrative unit having a higher poverty rate than the median poverty rate for the State and a lower median income rate than the median income rate for the State. The Early Childhood Education Fund receives 40% of the revenue from the statewide property tax, which must be used to provide funds for the purpose of expanding or developing early childhood education programs, as determined by the Commissioner of Education. The remaining 10% of revenue is deposited in the Land for Maine's Future Trust Fund.

Statutes affected:
Bill Text LD 1885, HP 1256: 5.6203