Bill Summary – FastDemocracy

LAW WITHOUT
                                                                 GOVERNOR'S               CHAPTER
                                                                 SIGNATURE
                                                                                               751
                                                                  MAY 8, 2022            PUBLIC LAW
                                  STATE OF MAINE
                                          _____
                          IN THE YEAR OF OUR LORD
                       TWO THOUSAND TWENTY-TWO
                                          _____
                                   S.P. 126 - L.D. 290
An Act To Stabilize Property Taxes for Individuals 65 Years of Age or Older
              Who Own a Homestead for at Least 10 Years
Be it enacted by the People of the State of Maine as follows:
    Sec. 1. 36 MRSA c. 908-B is enacted to read:
                                  CHAPTER 908-B
        PROPERTY TAX STABILIZATION FOR SENIOR CITIZENS
§6281. Stabilization of property taxes on homesteads of individuals 65 years of age or
       older
    1. Definitions. As used in this chapter, unless the context otherwise indicates, the
following terms have the following meanings.
    A. "Eligible homestead" means a homestead occupied by an eligible individual who is
    eligible for a homestead exemption under chapter 105, subchapter 4-B for the property
    tax year during which an application for stabilization is made.
    B. "Eligible individual" means an individual who:
        (1) Is 65 years of age or older; and
        (2) Is a permanent resident of the State as defined in section 681, subsection 4 who
        has owned a homestead in the State for at least 10 years.
    C. "Homestead" has the same meaning as under section 681, subsection 2.
    D. "Stabilize" means to maintain the property tax billed to an eligible individual for
    the individual's eligible homestead at the amount billed for that homestead for the
    property tax year preceding the date of application for stabilization.
    2. Application for stabilization. An individual may apply by December 1st to the
municipality in which the individual's homestead is located requesting that the municipality
stabilize the property tax assessed on that individual's homestead for the property tax year
beginning on April 1st following the submission of the application. A new application is
required for each year for which stabilization is requested.
                                   Page 1 - 130LR0346(05)
    3. Stabilization for eligible individual. If a municipality determines that an applicant
for stabilization under subsection 2 is an eligible individual and that the individual's
homestead is an eligible homestead, the municipality shall stabilize the property tax on the
individual's homestead billed for the property tax year for which stabilization was
requested.
     4. Transfer of eligibility. If an eligible individual has been eligible for stabilization
under this section and establishes a new homestead in the State, the individual continues to
be eligible for stabilization. If an eligible individual establishes a new homestead in a
different municipality, at the request of the eligible individual, the municipality where
eligibility was first established shall notify the new municipality of the eligible individual's
previous eligibility and the amount at which the property taxes were stabilized. The new
municipality shall bill the eligible individual at the stabilized amount and is eligible for
state compensation under subsection 5.
    5. State compensation. A municipality that has stabilized property tax for an eligible
individual under this chapter may recover from the State 100% of the amount by which the
property tax assessed on the homestead of an eligible individual in the usual manner
exceeds the stabilized amount of property tax billed under subsection 3. A municipality
claiming compensation under this subsection shall submit a claim to the bureau by
November 1st of the year in which the property tax was stabilized. The bureau shall review
claims and determine the total amount to be paid to each municipality. The bureau shall
certify and the Treasurer of State shall pay the amount due to each municipality by January
15th of the year following the year in which the claim for compensation was submitted.
    Sec. 2. Appropriations and allocations. The following appropriations and
allocations are made.
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF
Revenue Services, Bureau of 0002
Initiative: Provides funding for one property appraiser, one half-time, temporary property
appraiser, mandate reimbursement costs and All Other costs to process and audit
applications.
GENERAL FUND                                                       2021-22            2022-23
 POSITIONS - LEGISLATIVE COUNT                                        0.000             1.500
 Personal Services                                                       $0          $107,624
 All Other                                                               $0          $207,618
                                                                __________        __________
GENERAL FUND TOTAL                                                       $0          $315,242
                                     Page 2 - 130LR0346(05)