This bill exempts from the real estate transfer tax home buyers who use the Maine State Housing Authority's first-time home-buyer mortgage loan programs. It also increases the real estate transfer tax from $2.20 to $5 per $500 for real estate sales over $1,000,000. The bill directs the distribution of revenue derived from the tax collected on the transfer of property by deed, which is part of the real estate transfer tax, as follows:
1. The amount necessary and sufficient to meet bond obligations under the Maine Energy, Housing and Economic Recovery Program, distributed to the program;
2. Seventeen percent of that remaining balance, distributed to the Housing First Fund;
3. Fifteen percent of that remaining balance, distributed to the Housing Opportunities for Maine Fund;
4. Sixty percent of that remaining balance, distributed to the State's affordable housing income tax credit program and the Maine State Housing Authority's rural affordable rental program and affordable homeownership program; and
5. The remaining balance distributed to the General Fund. This bill also removes, beginning in fiscal year 2026-27, the requirement that 25% of Housing Opportunities for Maine Fund funds be used for housing production.

Statutes affected:
Bill Text LD 1082, HP 704: 36.4641