Legislative Document No. 164 S.P. 51 In Senate, January 17, 2019
An Act To Reduce Property Taxes for Maine Residents
Reference to the Committee on Taxation suggested and ordered printed.
DAREK M. GRANT Secretary of the Senate
Presented by Senator POULIOT of Kennebec. Cosponsored by Representative PIERCE of Falmouth and Senator: LIBBY of Androscoggin, Representatives: BICKFORD of Auburn, DOORE of Augusta, MADIGAN of Waterville.
Printed on recycled paper 1 Be it enacted by the People of the State of Maine as follows:
2 Sec. 1. 36 MRSA §683, sub-§1-B, as enacted by PL 2015, c. 267, Pt. J, §1, is 3 amended to read:
4 1-B. Additional exemption. A homestead eligible for an exemption under 5 subsection 1 is eligible for an additional exemption of $5,000 of the just value of the 6 homestead for property tax years beginning on April 1, 2016 and of, $10,000 of the just 7 value of the homestead for property tax years beginning on or after April 1, 2017 and 8 $40,000 of the just value of the homestead for property tax years beginning on or after 9 April 1, 2020.
10 Sec. 2. 36 MRSA §683, sub-§§3 and 4, as amended by PL 2017, c. 284, Pt. G, 11 §1, are further amended to read:
12 3. Effect on state valuation. For property tax years beginning before April 1, 2018, 13 50% of the just value of all the homestead exemptions under this subchapter must be 14 included in the annual determination of state valuation under sections 208 and 305. For 15 property tax years beginning on or after April 1, 2018 and before April 1, 2020, 62.5% of 16 the just value of all the homestead exemptions under this subchapter must be included in 17 the annual determination of state valuation under sections 208 and 305. For property tax 18 years beginning on or after April 1, 2020, 100% of the just value of all the homestead 19 exemptions under this subchapter must be included in the annual determination of state 20 valuation under sections 208 and 305.
21 4. Property tax rate. For property tax years beginning before April 1, 2018, 50% of 22 the just value of all the homestead exemptions under this subchapter must be included in 23 the total municipal valuation used to determine the municipal tax rate. For property tax 24 years beginning on or after April 1, 2018 and before April 1, 2020, 62.5% of the just 25 value of all the homestead exemptions under this subchapter must be included in the total 26 municipal valuation used to determine the municipal tax rate. For property tax years 27 beginning on or after April 1, 2020, 100% of the just value of all the homestead 28 exemptions under this subchapter must be included in the total municipal valuation used 29 to determine the municipal tax rate. The municipal tax rate as finally determined may be 30 applied to only the taxable portion of each homestead qualified for that tax year.
31 Sec. 3. 36 MRSA §685, sub-§2, as amended by PL 2017, c. 284, Pt. G, §2, is 32 further amended to read:
33 2. Entitlement to reimbursement by the State; calculation. A municipality that 34 has approved homestead exemptions under this subchapter may recover from the State: 35 A. For property tax years beginning before April 1, 2018, 50% of the taxes lost by 36 reason of the exemptions under section 683, subsections 1 and 1-B; and 37 B. For property tax years beginning on or after April 1, 2018 and before April 1, 38 2020, 62.5% of the taxes lost by reason of the exemptions under section 683, 39 subsections 1 and 1-B.; and
Page 1 - 129LR0268(01)-1 1 C. For property tax years beginning on or after April 1, 2020, 100% of the taxes lost 2 by reason of the exemptions under section 683, subsections 1 and 1-B. 3 The municipality must provide proof in a form satisfactory to the bureau. The bureau 4 shall reimburse the Unorganized Territory Education and Services Fund in the same 5 manner for taxes lost by reason of the exemptions.
6 SUMMARY 7 This bill increases the total exemption under the Maine resident homestead property 8 tax exemption program to $50,000 for property tax years beginning on or after April 1, 9 2020. This bill also increases state reimbursement to municipalities for homestead 10 property tax exemptions from 62.5% to 100% for property tax years beginning on or after 11 April 1, 2020.
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