130th MAINE LEGISLATURE
FIRST REGULAR SESSION-2021
Legislative Document No. 1289
H.P. 950 House of Representatives, March 30, 2021
An Act To Cut Property Taxes for Maine Residential Homeowners
Received by the Clerk of the House on March 26, 2021. Referred to the Committee on
Taxation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative PERRY of Bangor.
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 amended by PL 2019, c. 343, Pt. H, §2, is
3 further amended to read:
4 1-B. Additional exemption. A homestead eligible for an exemption under subsection
5 1 is eligible for an additional exemption of $5,000 of the just value of the homestead for
6 property tax years beginning on April 1, 2016, $10,000 of the just value of the homestead
7 for property tax years beginning on April 1, 2017, April 1, 2018 and April 1, 2019 and,
8 $15,000 of the just value of the homestead for property tax years beginning on or after
9 April 1, 2020 and April 1, 2021, $25,000 of the just value of the homestead for property
10 tax years beginning on April 1, 2022, $35,000 of the just value of the homestead for
11 property tax years beginning on April 1, 2023 and $45,000 for property tax years beginning
12 on or after April 1, 2024.
13 Sec. 2. 36 MRSA §5111, sub-§1-F, as enacted by PL 2015, c. 267, Pt. DD, §3, is
14 amended to read:
15 1-F. Single individuals and married persons filing separate returns; tax years
16 beginning in 2017 to 2021. For tax years beginning on or after January 1, 2017 but no
17 later than December 31, 2021, for single individuals and married persons filing separate
18 returns:
19 If Maine taxable income is: The tax is:
20 Less than $21,050 5.8% of the Maine taxable income
21 At least $21,050 but less than $50,000 $1,221 plus 6.75% of the excess over
22 $21,050
23 $50,000 or more $3,175 plus 7.15% of the excess over
24 $50,000
25
19 Sec. 3. 36 MRSA §5111, sub-§1-G is enacted to read:
26 1-G. Single individuals and married persons filing separate returns; tax years
27 beginning 2022. For tax years beginning on or after January 1, 2022, for single individuals
28 and married persons filing separate returns:
29 If Maine taxable income is: The tax is:
30 Less than $21,050 5.8% of the Maine taxable income
31 At least $21,050 but less than $50,000 $1,221 plus 6.75% of the excess over
32 $21,050
33 At least $50,000 but less than $300,000 $3,175 plus 7.15% of the excess over
34 $50,000
35 $300,000 or more $21,050 plus 7.95% of the excess over
36 $300,000
37
29 Sec. 4. 36 MRSA §5111, sub-§2-F, as enacted by PL 2015, c. 267, Pt. DD, §5, is
38
30 amended to read:
39 2-F. Heads of households; tax years beginning in 2017 to 2021. For tax years
40 beginning on or after January 1, 2017 but no later than December 31, 2021, for unmarried
41 individuals or legally separated individuals who qualify as heads of households:
42 If Maine taxable income is: The tax is:
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1 Less than $31,550 5.8% of the Maine taxable income
2 At least $31,550 but less than $75,000 $1,830 plus 6.75% of the excess over
3 $31,550
4 $75,000 or more $4,763 plus 7.15% of the excess over
5 $75,000
61 Sec. 5. 36 MRSA §5111, sub-§2-G is enacted to read:
7 2-G. Heads of households; tax years beginning 2022. For tax years beginning on or
8 after January 1, 2022, for unmarried individuals or legally separated individuals who
9 qualify as heads of households:
10 If Maine taxable income is: The tax is:
11 Less than $31,550 5.8% of the Maine taxable income
12 At least $31,550 but less than $75,000 $1,830 plus 6.75% of the excess over
13 $31,550
14 At least $75,000 but less than $450,000 $4,763 plus 7.15% of the excess over
15 $75,000
16 $450,000 or more $31,575 plus 7.95% of the excess over
17 $450,000
18
10 Sec. 6. 36 MRSA §5111, sub-§3-F, as enacted by PL 2015, c. 267, Pt. DD, §7, is
19
11 amended to read:
20 3-F. Individuals filing married joint returns or surviving spouses; tax years
21 beginning in 2017 to 2021. For tax years beginning on or after January 1, 2017 but no
22 later than December 31, 2021, for individuals filing married joint returns or surviving
23 spouses permitted to file a joint return:
24 If Maine taxable income is: The tax is:
25 Less than $42,100 5.8% of the Maine taxable income
26 At least $42,100 but less than $100,000 $2,442 plus 6.75% of the excess over
27 $42,100
28 $100,000 or more $6,350 plus 7.15% of the excess over
29 $100,000
30
24 Sec. 7. 36 MRSA §5111, sub-§3-G is enacted to read:
31 3-G. Individuals filing married joint returns or surviving spouses; tax years
32 beginning 2022. For tax years beginning on or after January 1, 2022, for individuals filing
33 married joint returns or surviving spouses permitted to file a joint return:
34 If Maine taxable income is: The tax is:
35 Less than $42,100 5.8% of the Maine taxable income
36 At least $42,100 but less than $100,000 $2,442 plus 6.75% of the excess over
37 $42,100
38 At least $100,000 but less than $600,000 $6,350 plus 7.15% of the excess over
39 $100,000
40 $600,000 or more $41,200 plus 7.95% of the excess over
41 $600,000
42
34 Sec. 8. 36 MRSA §5403, sub-§1, as enacted by PL 2015, c. 267, Pt. DD, §33, is
43
35 amended to read:
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1 1. Individual income tax rate tables. For the tax rate tables in section 5111:
2 A. Beginning in 2016 and each year thereafter through 2021, by the lowest dollar
3 amounts of the tax rate tables specified in section 5111, subsections 1-F, 2-F and 3-F,
4 except that for the purposes of this paragraph, notwithstanding section 5402, subsection
5 1-B, the "cost-of-living adjustment" is the Chained Consumer Price Index for the 12-
6 month period ending June 30th of the preceding calendar year divided by the Chained
7 Consumer Price Index for the 12-month period ending June 30, 2015; and
8 B. Beginning in 2017 and each year thereafter, by the highest taxable income dollar
9 amount of each tax rate table, except that for the purposes of this paragraph,
10 notwithstanding section 5402, subsection 1-B, the "cost-of-living adjustment" is the
11 Chained Consumer Price Index for the 12-month period ending June 30th of the
12 preceding calendar year divided by the Chained Consumer Price Index for the 12-
13 month period ending June 30, 2016; and
14 C. Beginning in 2022 and each year thereafter, by the lowest dollar amounts of the tax
15 rate tables specified in section 5111, subsections 1-G, 2-G and 3-G, except that for the
16 purposes of this paragraph, notwithstanding section 5402, subsection 1-B, the "cost-of-
17 living adjustment" is the Chained Consumer Price Index for the 12-month period
18 ending June 30th of the preceding calendar year divided by the Chained Consumer
19 Price Index for the 12-month period ending June 30, 2021;
20 SUMMARY
21 This bill creates a new income tax rate of 7.95% for tax years beginning on or after
22 January 1, 2022 for income exceeding $300,000 for single individuals and married persons
23 filing separately, $450,000 for individuals filing as heads of household and $600,000 for
24 individuals filing married joint returns or as surviving spouses. The bill also increases the
25 homestead property tax exemption from $25,000 in 2021 to $35,000 in 2022, $45,000 in
26 2023 and $55,000 in 2024.
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Statutes affected: Bill Text LD 1289, HP 950: 36.683, 36.5111, 36.5403