An Act To Provide Property Tax Relief for Maine Residents and Businesses and Implement Comprehensive Tax Reform
Maine Legislature, Session 121, LD 1141
Senate Amendment SA_A_S551 (Senate)
Amends: 5 MRSA §1521, 36 MRSA §1811, 20-A MRSA §15653, 36 MRSA §683, 36 MRSA §6201, 36 MRSA §6201-A, 36 MRSA §6203, 36 MRSA §6207, 36 MRSA §6209, 36 MRSA §6210, 36 MRSA §6218, 36 MRSA §6219, 36 MRSA §6220, 30-A MRSA §5823, 30-A MRSA §5681, 36 MRSA §943-A, 10 MRSA §1023

SENATE AMENDMENT "A" to H.P. 844, L.D. 1141, Bill, "An Act 
To Provide Property Tax Relief for Maine Residents and Businesses 
and Implement Comprehensive Tax Reform" 
Amend the bill by striking out everything after the enacting 
clause and before the summary and inserting in its place the 
following: 
'PART A 
Sec. A-I. 5 MRSA §1521 is enacted to read: 
§152l. 
Education Funding Stabilization Fund 
1. 
Education Funding Stabilization Fund. 
The Education 
Funding Stabilization Fund. referred to in this section as "the 
fund." is established for the purposes of providing property tax 
relief and meeting the State's share of the cost of funding 
public education from kindergarten to grade 12. 
2. 
Source 
of 
revenue. 
The 
fund 
receives 
revenue 
transferred by the State Tax Assessor under Title 36, section 
1811. subsection 2. 
3. 
Transfers. 
Transfers must be made 
from the fund as 
follows for the purpose of providing property tax relief. 
A. 
Before the beginning of each fiscal year, the State Tax 
Assessor shall estimate the following amounts and certify 
those amounts to the State Controller: 
SENATE AMENDMENT 
SENATE AMENDMENT ·A" to H.P. 844, L.D. 1141 
(1) 
The 
cost 
of 
funding 
the 
increase 
in 
state 
reimbursement to municipalities as 
a 
result of the 
increase in the homestead property tax exemption to 
$11,000; 
(2) 
The 
incremental cost of the Homestead Tax Cap 
Program over the cost of benefits calculated under the 
formula contained in the Maine Residents Property Tax 
Program as it existed on April 1, 2004: 
(3) 
The cost of funding the increase to 100~ in state 
reimbursement to municipalities for property tax loss 
resulting from the Maine Tree Growth Tax Law; 
(4) 
The cost associated with the Job Creation Property 
Tax Refund Act: and 
(5) 
The amount of any appropriation from the General 
Fund to the Mainely Small Business Capital Fund. 
B. 
The State Controller shall transfer from the fund to the 
General Fund each month an amount equal to lIl2th of the 
amount certified by the State Tax Assessor under paragraph A. 
C. 
At the close of each fiscal year. the State Tax Assessor 
shall certify the actual amounts attributable to paragraph 
A, 
subparagraphs 
(1) to (5). 
The State Controller shall 
make transfers between the General Fund and the fund to 
ensure that the balance of transfers to the General Fund for 
the fiscal year reflects the actual amounts attributable to 
paragraph A, subparagraphs (l) to (5). 
4. 
Use of fund. 
Allocations from the fund may be made only 
for the purpose of meeting the State' s share of the cost of 
funding public education from kindergarten to grade 12. 
Funds do 
not lapse but are carried forward for the purposes of this 
section. 
Sec. A-2. 36 MRSA §1811, as amended by PL 2003, c. 510, Pte 
C, §12 and affected by §13, is repealed and the following enacted 
in its place: 
SIBIl. Sales tax 
1. 
Base sales tax. 
A tax is imposed on the value of all 
tangible personal property and taxable services sold at retail in 
this State. 
The rate of tax is 7~ on the value of liquor sold in 
licensed establishments as defined in Title 28-A, 
section 2, 
subsection 15, in accordance with Title 28-A, chapter 43: 
7~ on 
the value of rental of living quarters in any hote1. 
rooming 
SENATE AMENDMENT 
.~."~' 
SENATE AMENDMENT .. A 
.. to H.P. 844, L.D. 1141 
house or tourist or trailer camp: 10'\ on the value of rental for 
a period of less than one year of an automobile: 7'\ on the value 
of prepared food: 
and 5'\ on the value of all other tangible 
personal property and taxable services. 
Value is measured by the 
sale price. except as otherwise provided. 
The tax imposed upon the sale and distribution of gas. water or 
electricity. 
or 
telecommunications 
services. 
by 
any 
public 
utility. 
the 
rates 
for 
which 
sale 
and 
distribution 
are 
established by the Public utilities Commission. must be added to 
the rates so established. A tax may not be imposed upon the sale 
or use of electrical energy, or water stored for the purpose of 
generating electricity, when the sale is to or by a wholly owned 
subsidiary by or to its parent corporation. except for electrical 
energy or water purchased for resale to or by such wholly owned 
subsidiary. 
Rental or lease of an automobile for one year or more must be 
taxed at the time of the lease or rental transaction at 5'\ of the 
following: 
the total monthly lease payment multiplied by the 
number of payments in the lease or rental, the amount of equity 
involved in any trade-in and the value of any cash down payment. 
Collection and remittance of the tax is the responsibility of the 
person that negotiates the lease transaction with the lessee. 
2. 
AdditiOnal tax. 
In addition to the tax imposed under 
subsection 1. an additional tax in the amount of 1'\ is imposed on 
sales that are subject to the tax at the rate of 5'\ under 
subsection 1. 
The tax imposed under this subsection is subject 
to the same conditions as the tax imposed under subsection 1. 
After the transfers required under Title 30-A, 
section 5681. 
subsection 5, 
the State Tax 
Assessor 
shall deposit 
revenue 
collected 
under 
this 
subsection 
to 
the 
Education 
Funding 
Stabilization Fund. 
Sec. A-3. 
Appropriations and 
allocations. 
appropriations and allocations are made. 
TREASURY, DEPAln'MEN7 OF 
Disproportionate Tax Burden Fund 
The 
following 
Initiative: 
Allocates funds to reflect additional transfers to 
the Disproportionate Tax Burden Fund as a result of the Act. 
Other Special Revenue Funds 
All Other 
Other Special Revenue Funds Total 
2003-04 
$0 
$0 
2004-05 
$4,345,111 
$4,345,111 
SENATE AMENDMENT 
~." 
SENATE AMENDMENT ,,4" to H.P. 844, L.D. 1141 
Sec. A-4. Effective date. 
This Part takes effect August 1, 2004. 
PARTB 
Sec. B-1. 20-A MRSA §15653, sub-§4, as amended by PL 2003, c. 
20, Pt. C, §3, is further amended to read: 
4. 
Statewide 10cal share. 
For fiscal year aQQ~-Q4 2004-05, 
the 
statewide 
local 
share 
amount 
of 
the 
operating 
costs 
allocation is based on the sum of the amounts determined by 
multiplying for each unit iT+4 ~ 
mills times the unit's 
property fiscal capacity. 
In subsequent years the mill rate is 
7.57 mills, except that the Legislature shall determine if an 
increase is needed to achieve the targeted per pupil guarantee 
under this section. 
Sec. B-2. Basic elementary and secondary per pupil operating rates. 
Notwithstanding any other provision of law, the basic elementary 
per pupil operating rate for fiscal year 2004-05 is $5,515 and 
the basic secondary per pupil operating rate for fiscal year 
2004-05 is $6,132. 
The foundation per pupil operating rate for 
fiscal year 2004-05 is $5,716. 
Sec. 
B-3. 
Per 
pupil 
guarantee 
and 
Notwithstanding 
any 
other 
provision of 
law, 
guarantee 
for fiscal year 2004-05 is $5,047. 
factor for fiscal year 2004-05 is 0.61350. 
statewide 
factor. 
the 
The 
per 
pupil 
statewide 
Sec. B-4. Foundation allocation. 
Notwithstanding 
any other 
provision of law, the foundation allocation of state and local 
funds for fiscal year 2004-05 for the purposes listed in this 
section is as follows: 
Operating 
Per pupil guarantee pursuant to the 
Maine Revised Statutes, Title 20-A, 
section 15653, subsection 1. 
ProqraDl Costs 
Early Childhood 
Special Education (Local) 
Special Education (Tuition and Board) 
2004-05 
TOTAL 
$1,062,465,117 
1,367,317 
195,504,985 
19,395,944 
SENATE AMENDMENT 
~ .. " 
SENATE AMENDMENT It" to H.P. 844, L.D. 1141 
Vocational Education 
Transportation Operating 
Bus Purchases (including lease-purchases) 
Program Cost Total 
Less percentage reduction pursuant to the 
Maine Revised Statutes, Title 20-A, 
section 15603, subsection 26-A, 
paragraph F. 
Adjusted Program Cost Total 
Foundation Total - Combined Adjusted 
Operating and Program Cost 
34,423,516 
76,147,845 
10,000,000 
336,839,607 
(6,703,108) 
330,139,499 
$1,392,601,616 
Sec. B-S. Foundation subsidy indexes. 
Notwithstanding any other 
provision of law, this section establishes mill rates pursuant to 
the Maine Revised Statutes, Title 20-A, chapter 606 as follows: 
operating cost millage, 8.61 mills; program millage limit, 1. 36 
mills. 
Sec. B-6. Foundation reduction percentages. 
Notwithstanding any 
other 
prov1s1on 
of 
law, 
this 
section establishes 
reduction 
percentages as follows: program cost reduction percentage, 1.99%; 
transportation operating reduction percentage, 1.99%. 
Sec. B-7. Foundation appropriation. 
Notwithstanding any other 
provision of 
law, 
the 
foundation appropriation provided for 
General 
Purpose 
Aid 
for 
Local 
Schools 
for 
the fiscal year 
beginning July 1, 2004 and ending June 30, 2005 is calculated as 
follows. 
Foundation Total -
Combined Adjusted 
2004-05 
TO'.rAL 
Operating and Program Cost 
$1,392,601,616 
Minimum State Subsidy 
2,219,135 
ADJUSTED FommATIOlf ALLOCATION 
TO'.rAL 
$1,394,880,151 
2004-05 
STATE 
$662,715,331 
2,279,135 
$664,994,466 
SENATE AMENDMENT 
~~, 
'f.. 
SENATE AMENDMENT "A" 
H P 
L 
1141 
to •. 
, 
.0. 
Sec. B·8. Debt service allocation. 
Notwithstanding any other 
provision of law, the debt service allocation of state and local 
funds for fiscal year 2004-05 for the purposes listed in this 
section is as follows. 
Debt Service Costs 
Principal and Interest 
Approved Leases and Lease-purchases of Space 
Insured Value Factor 
Debt Service Cost Total 
Less percentage reduction of insured 
value factor pursuant to the Maine 
Revised Statutes, Title 20-A, section 
15603, subsection 26-A, paragraph F. 
Adjusted Debt Service Cost Total 
2004-05 
'l"O'.rAL 
$73,787,290 
6,178,767 
3,055,623 
83,021,680 
(60,807) 
$82,960,873 
Sec. B·9. Debt service subsidy indexes. 
Notwithstanding any 
other provision of 
law, 
this section establishes mill rates 
pursuant to the Maine Revised Statutes, Title 20-A, chapter 606 
as follows: 
operating cost millage, 
8.67 mills; debt service 
millage limit, 0.38 mills. 
Sec. B·I0. Debt service reduction percentages. 
Notwithstanding 
any other provision of law, this section establishes reduction 
percentages 
as 
follows: 
insured 
value 
factor 
reduction 
percentage, 1.99~. 
Sec. B·ll. Debt service appropriation. 
Notwithstanding 
any 
other provision of law, the debt service appropriation provided 
for General Purpose Aid for Local Schools for the fiscal year 
beginning July 1, 2004 and ending June 30, 2005 is calculated as 
follows. 
2004-05 
TOTAL 
ADJUSTED DEBT SERVICE ALLOCATION ~ 
$82,960,873 
2004-05 
STATE 
$59,244,203 
SENATE AMENDMENT 
~.~. 
SENATE AMENDMENT .. A 
.. to H.P. 844, L.D. 1141 
2004-05 
TOTAL 
CC»IBlHED ADJUS7ED FOORDATION ABD 
ADJUSTED DEBT SERVICE ALLOCATIONS 
'l'O'.lAL 
$1,477,841,624 
2004-05 
STATE 
$724,238,669 
Sec. 
B-12. 
Adjustments 
and 
miscellaneous 
costs 
allocation. 
Notwithstanding any other provision of law, the adjustments and 
miscellaneous costs allocation of state funds for fiscal year 
2004-05 for the purposes listed in this section is as follows. 
Adjustments and Miscellaneous Costs 
Cost of Geographic Isolation Adjustments 
Cost of Quality Incentive Adjustments 
Audit Adjustments 
Cost of Reimbursement for Private 
School Services 
Special Education Tuition and Board for State 
Wards and Other Pupils Placed Directly by 
the State 
State Agency Clients 
English as a 2nd Language 
Out-of-district Placements 
Long-term Drug Treatment Centers 
Maine Education Policy Research Institute 
Essential Programs and Services Contract 
Carpenter Bus Loan 
Regionalization/Consolidation/Efficiency 
Assistance 
Learning Results Accountability 
Learning Results Implementation and 
Assessment 
2004-05 
'lUTAL 
$489,904 
o 
o 
203,031 
11,231,613 
25,839,830 
2,129,818 
2,981,064 
166,392 
150,000 
75,000 
550,000 
125,000 
250,000 
1,112,000 
SENATE AMENDMENT 
~J~' 
SENATE AMENDMENT" A 
.. to H.P. 844, L.D. 1141 
Total Adjustments 
$45,303,652 
Sec. B-13. Adjustments and miscellaneous costs appropriation. 
Notwithstanding any other provision of law, the adjustments and 
miscellaneous costs appropriation provided for General Purpose 
Aid for Local Schools for the fiscal year beginning July 1, 2004 
and ending June 30, 2005 is calculated as follows. 
ADJUSTMERTS AND MISCELLANEOUS 
COSTS 'l'O'.rAL 
2004-05 
"l'OTAL 
$45,303,652 
2004-05 
STATE 
$45,303,652 
FOUNDATIaI, DEBT SERVICE AND 
ADJUS".I.'MEII"XS AND MISCELLABEOOS 
COSTS TOrAL' 
$1,523,145,276 
$769,542,321 
Sec. B-14. Limit of State's obligation. 
Notwithstanding any other 
provision of law, if the State's continued obligation for any 
individual program contained in sections 4, 7, 8, 11, 12 and 13 
of this Part exceeds the level of funding provided for that 
program, any unexpended balances occurring in other programs may 
be applied to avoid proration of payments for any individual 
program. 
Any unexpended balances from sections 4, 7, 8, 11, 12 
and 13 of this Part may not lapse but must be carried forward for 
the same purpose. 
Sec. B-15. Authorization of payments. 
Notwithstanding 
any 
other provision of law, sections 1 to 14 of this Part may not be 
construed to require the State to provide payments that exceed 
the appropriation of funds for General Purpose Aid for Local 
Schools for the fiscal year beginning July 1, 2004 and ending 
June 30, 2005. 
Sec. B-16. Component funding. 
provision of law, in accordance with 
Title 20-A, section 15607, subsection 
General Purpose Aid for Local Schools 
is as follows: 
Notwithstanding 
any 
other 
the Maine Revised Statutes, 
3, component funding within 
for the fiscal year 2004-05 
Foundation (including Minimum State Subsidy) 
Debt Service 
2004-05 
$664,994,466 
59,244,203 
45,303,652 
Adjustments 
TOTAL 
$769,542,321 
SENATE AMENDMENT 
~. .. to. 
SENATE AMENDMENT "4" to H.P. 844, L.D. 1141 
Sec. B-17. General Purpose Aid for Local Schools; fiscal year 2003-04 
balances. 
Notwithstanding any other provision of law, the total 
amount of funds available in the General Purpose Aid for Local 
Schools 
program 
in this 
Part 
to 
be 
distributed to 
school 
administrative units in fiscal year 2004-05 includes $5,050,000 
in funds carried forward from fiscal year 2003-04. 
Sec. B-18. 
Appropriations and allocations. 
appropriations and allocations are made. 
EDUCATICIf, DEPAR"lMERT OF 
General Purpose Aid for Local Schools 
(0308) 
The 
following 
Initiative: 
Provides additional funds for the General Purpose 
Aid for Local Schools program. 
Other Special Revenue Funds 
All Other 
Other Special Revenue Funds Total 
PARTe 
Z003-04 
$0 
$0 
Z004-05 
$29,163,745 
$29,163,745 
Sec. C-l. 36 MRSA §683, sub-§I, as repealed and replaced by PL 
2003, c. 20, Pt. BB, §l and affected by §3, is repealed. 
Sec. C-2. 36 MRSA §683, 5ub-§I-A, as enacted by PL 2003, c. 
20, Pt. BB, §2 and affected by §3, is repealed. 
Sec. C-3. 36 MRSA §683, sub-§I-B is enacted to read: 
B. 
Ezemption amount. 
The estate up to the just value of 
$11. 000 of the homestead of a permanent resident of this State 
who has owned a homestead in this State for the preceding 12 
months is exempt from taxation except for assessments for special 
benefits. 
In 
determining 
the 
local 
assessed'! value 
of 
the 
exemption. 
the 
assessor 
shall 
multiply 
the 
amount 
of 
the 
exemption by the ratio of current just value upon which the 
assessment is based as furnished in the assessor's annual return 
pursuant to section 383. 
If the title to a homestead is held by 
the applicant jointly or in COmmon with others. the exemption may 
not exceed $11.000 of the just value of the homestead but may be 
apportioned among the owners who reside on the property to the 
extent of their respective interests. 
A municipality responsible 
for administering the homestead exemption has no obligation to 
create separate accounts for each partial interest in a homestead 
owned jointly or in common. 
SENATE AMENDMENT 
t.~. 
~' 
SENATE AMENDMENT" A" to H.P. 844, L.D. 1141 
Sec. C-4. Application. 
This Part applies to property tax 
valuations based on the status of property on or after April 1, 
2004. 
Sec. C-S. Retroactivity. 
This Part applies retroactively to 
April 1, 2004. 
Any actions by municipalities to comply with this 
Part that are taken before the effective date of this Part are 
valid. 
Sec. 
C-6. 
Appropriations and allocations. 
appropriations and allocations are made. 
The 
following 
ADMINISTRA'rIVE AIm FINANCIAL SERVICES, DEPAInJIBlIIT OF 
Homestead Property 'raz Exemption Reimbursement 
0886 
Initiative: 
Provides funds to increase the homestead exemption 
to $11,000 and eliminate the tiered exemption. 
General Fund 
All Other 
General Fund Total 
Z003-04 
$0 
$0 
Z004-05 
$26,916,336 
$26,916,336 
Homestead Property 'raz Exemption - Mandate Reimbursement 
Initiative: 
Provides funds to reimburse municipalities for the 
local cost associated with changes to the homestead exemption. 
General Fund 
All Other 
General Fund Total 
ADMIHISTRA7IVE AIm FIHANCIAL SERVICES, 
DEPAR'.DIBIIT OF 
DEPARDIBHT '1'OrALS 
GBHERAL FORD 
DEPAR'.DIBIIT '1'O'l'AL -
ALL FORDS 
PARTD 
Z003-04 
$0 
$0 
Z003-04 
$0 
$0 
Z004-05 
$33,500 
$33,500 
Z004-05 
$26,949,836 
$26,949,836 
Sec. D-l. 36 MRSA c. 907, as amended, is further amended by 
repealing the chapter headnote and enacting the following in its 
place: 
SENATE AMENDMENT 
SENATE AMENDMENT "A" to H.P. 844, L.D. 1141 
CHAPTER 907 
HOMESTEAD %AX CAP PROGRAM 
Sec. D-2. 36 MRSA §6201, sub-§ll-A, as amended by PL 1999, c. 
401, Pt. R, §1 and affected by §2, is further amended to read: 
II-A. 
Rent 
constituting 
property 
tcmes 
accrued 
for 
nonelderly household. 
"Rent constituting property taxes accrued 
for 
nonelderly household" 
means 
18% 
~ of 
the gross 
rent 
actually paid in cash or its equivalent in any tax year by a 
claimant and the claimant I s household solely for the right of 
occupancy of their Maine homestead in the tax year and which rent 
constitutes the basis, in the succeeding calendar year, of a 
claim for relief under this chapter by the claimant. 
Sec. D-3. 36 MRSA §6201-A, as enacted by PL 1989, c. 534, 
Pt. A, §4, is amended to read: 
§620I-A. Short title 
This chapter saal;!: ~ 
be known and lRay--:&e cited as the 
"MaiRe-ResiEleats-Pl'epel'ty Homestead Tax .c..ap. Program." 
Sec. D-4. 36 MRSA §6203, as enacted by PL 1987, c. 516, §§3 
and 6, is repealed. 
Sec. D-S. 36 MRS A §6203-A is enacted to read: 
§6203-A. 
Procedure for reimbursemept 
At least monthly on or before the last day of the month, the 
State Tax Assessor shall determine the benefit for each claimant 
under this chapter and certify the amount. to the State Controller 
to be 
transferred to 
the so-called circuit breaker 
reserve 
established, maintained and administered by the State Controller 
from 
General 
Fund 
undedicated 
revenue 
within the 
individual 
income tax category. 
At least monthly, the assessor shall pay 
the certified amounts to each approved applicant qualifying for 
the benefit under this chapter. 
Interest may not be allowed on 
any payment made to a claimant pursuant to this chapter. 
Sec. D-6. 36 MRSA §6207, as amended by PL 1999, c. 494, §1, 
is further amended to read: 
§6207. Calculation of benefits for nonelderly households 
A claimant representing a nonelderly household qualifies for 
SENATE AMENDMENT 
SENATE AMENDMENT ·A .. to H.P. 844, L.D. 1141 
the 
following 
benefits 
limitsatsieBs. 
1. 
Benefit calculation. 
For 
claimants 
representing 
a 
nonelderly household, the benefit is calculated as follows: 
A-I. 
Fifty percent of that portion of the benefit base that 
exceeds 4'lt. but does not exceed 8'lt. of income plus 100'lt. of 
that portion of the benefit base that exceeds 8'lt. of income 
to a maximum payment of $~TQQQ $2,000. 
2. 
Income 
eliqibility. 
Single-member 
households 
with 
household incomes in excess of $:liT+QQ $40« 000 and households 
with 2 or more members with a household income in excess of 
$4QTQQQ $60,000 are not eligible for a benefit. 
3. 
Subsidized housinq; special needs payment. 
A claim may 
not be granted under this section to claimants: 
26· 
A. 
Whose housing costs for the year for which relief is 
requested were subsidized by government programs that limit 
housing costs to a percentage of household income, except 
that the exclusion provided by this paragraph does not apply 
to 
persons 
rece~v~ng 
social 
security 
disability 
or 
supplemental security income disability benefits. 
4. Minimum benefit. 
A claim of less than $10 may not be 
granted. 
Sec. D-7. 36 MRSA §6209, sub-§l, as amended by PL 1989, c. 
508, §25, is further amended to read: 
1. 
Household limitation adjustment; elderly households. 
Beginning March 1, 1989, and annually thereafter, the State Tax 
Assessor 
shall 
determine 
the 
household 
income 
eligibility 
adjustment factor. That factor silan IDY§..t. be multiplied by the 
income limitations in section 6206, applicable for the year prior 
to that for which relief is requested. The result shall ~ 
be 
rounded to the nearest $100 and sha~*-apply applies to the year 
for which relief is requested corresponding to the year on which 
the annualized cost of living adjustments were based. 
8e'}iBBiB'} 
Ma~eh-17-1~~17-~Be-~~~~~~~~~~-~-aQ~asts-tshe 
iBeeme-limitsatsieB-iR-seetsieB-e:lQ+T-sYBseetsieR-:lT 
Sec. D-8. 36 MRSA §6210, as amended by PL 1997, c. 557, Pt. 
A, §4 and affected by Pt. G, §l, is further amended to read: 
§6210. Administration 
SENATE AMENDMENT 
SENATE AMENDMENT .. A .. to H.P. 844, L.D. 1141 
The State Tax Assessor shall make available sui table forms 
wi th instructions for claimants. The claim Baa.. mY.S..t be in the 
form the State Tax Assessor 
lRaY-p!'e.se~:iBe prescribes and Baa;!:;!: 
~ 
be signed by the claimant. 
The State Tax Assessor shall include a checkoff to request 
an application for the Maine-ReBigeBts-P~epe~ey Homestead Tax Cap 
Program on the individual income tax form. 
The assessor shall 
also provide for the option of filing an application for the 
Ma3:Be--R&s-ident-s--P~epe~ey Homestead Tax ~ Program using the 
telefile system established by the assessor. 
Sec. D·9. 36 MRSA §6218, as enacted by PL 1989, c. 534, Pt. 
A, S10, is amended to read: 
§6218. Readability; application; instructions 
The application form and instructions used by applicants for 
assistance under the MaiRe-~.(le.n.t-s--PFepeFey Homestead Tax .csm 
Program and its successor, if any, Baa •• mYat have a readability 
score, 
as determined by a 
recognized instrument for measuring 
adult literacy levels, equivalent to no higher than a 6th grade 
reading level. 
Sec. D-I0. 36 MRSA §6219, as enacted by PL 1989, c. 534, Pt. 
A, §10 and amended by PL 1997, c. 526, §14, is further amended to 
read: 
§6219. Outreach plan required 
The Bureau of Revenue Services shall develop and implement a 
plan of outreach to ensure that all eligible households are made 
aware of assistance available under the Mai:&e-Res:igent;s-P~epeFty 
Homestead Tax ~ 
Program and its successor, if any. 
Sec. D·ll. 36 MRSA §6220, as amended by PL 1997, c. 668, §40, 
is further amended to read: 
§6220. Coordination required 
The bureau shall seek the advice and cooperation of the 
Bureau 
of 
Elder 
and 
Adult 
Services; 
the 
Bureau 
of 
Family 
Independence; the Bureau of Child and Family Services; advocates 
for elderly and 
low-income 
individuals; 
and other interested 
agencies and organizations in developing the application form and 
instruction booklet for the 
MaiBe--Re&ident.-s--P~epeFt;y Homestead 
Tax ~ 
Program and the outreach plan required by section 6219. 
Sec. D·12. Application. 
This Part applies to applications for 
benefits made on or after August 1, 2004. 
SENATE AMENDMENT 
~"t;" 
SENATE AMENDMENT .. A 
.. to H.P. 844, L.D. 1141 
Sec. D-13. 
Appropriations and allocations. 
appropriations and allocations are made. 
The 
following 
ADMINISTRATIVE ABD FINAlICIAL SERVICES, DEPARTMENT OF 
Maine Revenue Services 0002 
Initiative: 
Provides funds for 
Tax 
Examiner positions and 
other administrative costs associated with the establishment of 
the Homestead Property Tax Cap Program. 
General Fund 
Positions - Legislative Count 
Personal Services 
All Other 
General Fund Total 
2003-04 
(0.000) 
$0 
o 
$0 
2004-05 
(2.000) 
$97,325 
277,358 
$374,683 
Sec. D-14. Exception to limitations on transfers. 
Notwithstanding 
any other provision of law, including any limitations on the 
amounts transferred to the circuit breaker reserve in fiscal year 
2004-05, the State Tax Assessor may certify amounts above any 
limitation to 
provide 
the 
necessary 
transfers 
to 
fund 
the 
additional benefits authorized by this Act. 
PARTE 
Sec. E-l. 36 MRSA §S78, sub-§l, as amended by PL 1999, c. 708, 
§21,· is further amended to read: 
1. 
Organized areas. 
The 
municipal 
assessors 
or 
chief 
assessor of a primary assessing area shall adjust the State Tax 
Assessor's 100~ valuation per acre for each forest type of their 
county by whatever ratio, or percentage of current just value, is 
applied to other property within the municipality to obtain the 
assessed values. 
Forest land in the organized areas, Subject to 
taxation under this subchapter, must be taxed at the property tax 
rate applicable to other property in the municipality. 
The State Tax Assessor shall pay any municipal claim found to be 
in satisfactory form within 120 days after receipt of the claim. 
The State Tax Assessor shall determine annually the amount of 
acreage in each municipality that is classified and taxed in 
accordance with this 
subchapter. 
Each 
such municipality is 
entitled to 
annual 
payments 
from 
money 
appropriated by 
the 
Legislature if it submits an annual return in accordance with 
SENATE AMENDMENT 
.~t~, 
SENATE AMENDMENT .. A .. to H.P. 844, L.D. 1141 
section 383 and if it achieves the appropriate m~n~mum assessment 
ratio described in section 327. 
The per acre reimbursement is 
9Q% ~ 
of the per acre tax revenue lost as a result of this 
subchapter. 
For purposes of this section, the tax lost is the 
tax that would have been assessed, but for this subchapter, on 
the classified forest lands if they were assessed according to 
the undeveloped acreage valuations used in the state valuation 
then in effect, or according to the current local valuation on 
undeveloped acreage, whichever is less, minus the tax that was 
actually assessed on the same lands in accordance with this 
subchapter. 
A municipality that fails to achieve the minimum 
assessment ratio established in section 327 loses 10'lt> of the 
reimbursement provided by this section for each one percentage 
point 
the 
m~n~mum assessment 
ratio 
falls 
below 
the 
ratio 
established in section 327. 
No municipality may receive a reimbursement payment under this 
section that would exceed an amount determined by calculating the 
tree growth tax loss less the municipal savings in educational 
costs attributable to reduced state valuation. 
A. 
The tree growth tax loss is the adjusted tax that would 
have 
been 
assessed, 
but 
for 
this 
subchapter, 
on 
the 
classified forest lands if they were assessed according to 
the 
undeveloped 
acreage 
valuations 
used 
in 
the 
state 
valuation then in effect minus the tax that was actually 
assessed 
on 
the 
same 
lands 
in 
accordance 
with 
this 
subchapter. 
In 
determining 
the 
adjusted 
tax 
that 
would 
have 
been 
assessed, the tax rate to be used is computed by adding the 
additional school support required by the modified state 
valuation attributable to the increased valuation of forest 
land to the original tax committed and dividing this sum by 
the modified total municipal valuation. 
The adjusted tax 
rate is then applied to the valuation of forest land based 
on 
the 
undeveloped 
acreage valuations, 
adjusted by 
the 
certified ratio, to determine the adjusted tax. 
B. 
The municipal savings in educational costs is determined 
by multiplying the school subsidy index by the change in 
state valuation attributable to the use of the valuations 
determined in accordance with this subchapter on classified 
forest 
lands 
rather 
than 
their 
valuation 
using 
the 
undeveloped acreage valuations used in the state valuation 
then in effect. 
Sec. 
E·2. 
Appropriations and allocations. 
appropriations and allocations are made. 
Page l5-LR0392(6) 
The 
following 
SENATE AMENDMENT 
~.~'15, 
SENATE AMENDMENT "A " to H.P. 844, L.D. 1141 
ADMIHISTRATIVE ABD FINANCIAL SERVICES, DEPARTMENT OF 
Tree Growth Tax Reimbursement 
0261 
Initiative: 
Provides funds to increase tree growth reimbursement 
from 90~ to lOO~. 
General Fund 
All Other 
General Fund Total 
PARTF 
2003-04 
$0 
$0 
Sec. F-l. 30-A MRSA c. 3, sub-c. 3 is enacted to read: 
SUBCBAPTER 3 
COUNTI APPROPRIATIOII LIMITATIQJf 
§981. 
County apprqpriation limitation 
2004-05 
$100,000 
$100,000 
Notwithstanding the other provisions of this chapter. the 
following limitations apply to a county services appropriation 
for county fiscal years that begin on or after January I. 2005. 
1. 
Definitions. 
As used in this subcha,pter, unless the 
context 
otherwise 
indica,tes, 
the 
following 
terms 
have 
the 
following meanings. 
A. 
"County budget authority" means a body with authority to 
adopt a county budget under this chapter. 
B. 
"County services appropriation" mea,ns the total amount 
of 
money 
raised and 
appropriated to 
pay 
for 
services. 
programs and public debt that is included in a 
count,y' s 
annual budget, but, does not, include any grant, or subsidy t,hat 
the count,y receives from the Federal Government,. 
C. 
"Exceptional 
circumsta,nces" 
mea,ns 
a,n 
unforeseen 
condition 
or 
condit,ions 
over 
which 
the 
county 
budget, 
aut,horit,y has little or no control and does not mean new 
programs or 
program expansions 
t,hat 
go 
beyond existing 
program criteria, a,nd opera,tions. 
2. 
A2Prqpriation limitation. 
The 
tot,a,l 
county services 
appropriation for each fiscal year of a county may not exceed the 
SENATE AMENDMENT 
-~~ .. 
,,:(-3 V' 
SENATE AMENDMENT "A" to H.P. 844, L.D. 1141 
county 
services 
appropriation 
of 
the 
previous 
fiscal 
year 
multiplied 
by 
the 
limitation 
on 
the 
total 
General 
Fund 
APpropriation described in Title 5. section 1664. 
3. 
Exceptional 
circumstances. 
Except 
as 
provided 
in 
subsection 4. 
the 
amount derived under subsection 2 
may be 
exceeded only by the amount of additional costs or the lost 
revenue from the following exceptional circumstances: 
A. 
Unfunded or underfunded new state or federal mandates; 
B. 
Losses in state or federal revenues or other revenue 
sources; 
C. 
Citizens' 
initiatives 
or 
referenda 
that 
require 
increased county spending; 
D. 
Court orders or decrees that require additional county 
resources to comply with the orders or decrees; or 
E. 
Sudden or significant increases in demand for existing 
county services that are not the result of county budget 
authority actions 
that increase eligibility or 
increase 
benefits. 
In 
addition, 
the 
county 
budget 
authority 
may 
designate 
exceptional circumstances that are not explicitly described in 
paragraphs A to E but meet the intent of this section. 
4. 
Voter QRProyal. 
Except as provided in subsection 3, the 
amount 
derived under 
subsection 
may 
be 
exceeded only if 
approved by a referendum vote in the county. 
Sec. F-2. 30·A MRSA §5721-A is enacted to read: 
§5721-A. 
Municipal aePrqpriation limitation 
The 
following 
limitations 
apply 
to 
a 
municipality's 
appropriations adopted on or after September I. 2004. 
1. 
Definitions. 
As 
used in this 
section. 
unless 
the 
context 
otherwise 
indicates. 
the 
following 
terms 
have 
the 
following meanings. 
A. 
"Exceptional 
circumstances" 
means 
an 
unforeseen 
condition or conditions over which the municipal legislative 
body has little or no control and does not mean new programs 
or 
program 
expansions 
that 
go 
beyond 
existing 
program 
criteria and operations. 
SENATE AMENDMENT 
~.~~. 
. 
SENATE AMENDMENT "fI" to H.P. 844, L.D. 1141 
B. 
"Municipal 
services 
appropriation" 
means 
the 
total 
amount of money raised and appropriated to pay for services, 
programs 
and 
public 
debt 
that 
is 
included 
in 
a 
municipality's annual budget but does not include local 
costs for public education from kindergarten to grade 12, 
assessments made to support general county government and 
any grant or subsidy that the municipality receives from the 
Federal Government. 
2. 
Aeprgpriation limitation. 
The total municipal services 
appropriation for each fiscal year of a municipality may not 
exceed the 
municipal 
services appropriation of the 
previous 
fiscal year multiplied by the limitation on the total General 
Fund appropriation described in Title 5. section 1664. 
• 
Exceptional circumstances. 
The 
amount derived under 
subsection 2 may be exceeded only by the amount of additional 
costs 
or 
the 
lost 
revenue 
from 
the 
following 
exceptional 
circumstances: 
A. 
Unfunded or underfunded new state or federal mandates: 
B. 
Losses in state or federal revenues or other revenue 
sources, except losses in revenue under subsection 5: 
C. 
Citizens' 
initiatives 
or 
referenda 
that 
require 
increased municipal spending: 
D. 
Court 
orders 
or 
decrees 
that 
require 
additional 
municipal resources to comply with the orders or decrees: or 
E. 
Sudden or significant increases in demand for existing 
municipal services that are not the result of municipal 
legislative 
body 
actions 
that 
increase 
eligibility 
or 
increase benefits. 
In 
addition, 
the 
municipal 
legislative 
body 
may 
designate 
exceptional circumstances that are not explicitly described in 
paragraphs A to E but meet the intent of this section. 
4. 
Voter approval. 
Except as provided in subsection 3, the 
amount . derived 
under 
subsection 
may 
be 
exceeded 
only if 
approved by a referendum vote in the municipality or by a town 
meeting. 
5. 
Revenue-sharing deduction. 
If a municipality's spending 
exceeds the amount derived under subsections 2 and 
due to 
circumstances 
that 
are 
not 
exceptional, 
as 
established 
in 
SENATE AMENDMENT 
~~ 
'\\.~ ~, 
SENATE AMENDMENT .. A .. to H.P. 844, L.D. 1141 
subsection 3, its share of distributions under section 5681, 
subsections 4-A and 4-B must be reduced in the following manner; 
A. 
The Department of Audit shall declare the amount by 
which the municipality has exceeded the amount derived under 
subsection 
and shall determine what the property tax 
burden of the municipality would be without the exceeding of 
the amount derived under subsections 2 and 3: 
B, 
The Department of Audit shall report the property tax 
burden determination under paragraph A to the Treasurer of 
State; and 
C, 
The Treasurer of State shall use the property tax burden 
amount reported under paragraph B to determine the amount to 
be 
disbursed 
to 
the 
municipality 
under 
section 
5681, 
subsections 4-A and 4-B. 
6. 
Procedures. 
The Department of Audit and the Treasurer 
of State shall establish procedures 
and may 
adopt rules to 
implement the reguirements of this section. 
Rules adopted under 
this subsection are routine technical rules as defined in Title 
5, chapter 375, subchapter 2-A. 
Sec. F·3. 30-A MRSA §5823, sub-§3, llA, as amended by PL 2003, 
c. 178, §5, is further amended to read: 
A. 
The report must contain the following items: 
(1) 
A management letter, if applicable; 
(2) 
A letter of transmittal; 
(3) 
The independent auditor's report on the financial 
statements; aRe 
(4) 
All financial statements and all other information 
required 
by 
governmental 
accounting 
and 
financial 
reporting standardsT~ 
(5) 
A statement of; 
(a) Whether the municipality has exceed the amount 
derived under section 5721-A, subsection 2 due to 
circumstances 
that 
are 
not 
exceptional, 
as 
described in section 
5721-A, 
subsection 
3, 
if 
applicable; and 
(b) 
If the amount derived under section 5721-A, 
SENATE AMENDMENT 
",.If).\' 
SENATE AMENDMENT .;4 " to H.P. 844, L.D. 1141 
subsection 2 has been exceeded as described in 
division (a), a calculation of the amount by which 
the municipality has exceeded that amount. 
Sec. F-4. 30-A MRSA §5823, sub-§3, 1JB, as amended by PL 1997, 
c. 142, §2, is further amended to read: 
B. 
Within 30 days after the postaudit is completed, the 
auditor shall send to the State Auditor: 
(1) 
A 
certified 
copy 
of 
the 
postaudit 
report, 
excluding the management letter; aRe 
(2) 
A certified copy of 
prescribed 
by 
the 
State 
auditsT~ 
the audit procedural form 
Auditor 
for 
governmental 
(3) 
A copy of the municipality's approved offi'Cial 
budget for the year audited. 
Sec. F-5. 
Legislation. 
The 
Department 
of 
Audit 
and 
the 
Treasurer of State may introduce legislation to the First Regular 
Session 
of 
the 
l22nd 
Legislature 
by 
February 
1, 
2005 
if 
considered necessary to implement the provisions of the Maine 
Revised Statutes, Title 30-A, section 5721-A. 
PARTG 
Sec. G·I. 30-A MRSA §5681, sub·§2, tF is enacted to read: 
F. 
"Noneducation mill rate" 
means 
the total real 
and 
personal 
property 
taxes 
assessed 
in the 
most 
recently 
completed municipal fiscal year for purposes other than 
public education from kindergarten to grade 12, except the 
taxes assessed on captured value within a 
tax increment 
financing district, divided by the latest state valuation 
certified to the Secretary of State. 
Sec. G-2. 30-A MRSA §5681, sub·§4-B, as enacted by PL 1999, c. 
731, Pt. U, §4, is amended to read: 
4-B_ 
Distribution of Disproportionate Tax Burden Fund. 
The 
Treasurer 
of 
State 
shall 
transfer 
the 
balance 
in 
the 
Disproportionate Tax Burden Fund on the 20th day of each month tQ 
municipalities whose noneducation mill .rate is 6 
or greater. 
Money in the Disproportionate Tax Burden Fund must be distributed 
to eaea-mQRieipa*ity eligible municipalities in proportion to the 
product of the population of the municipality multiplied by the 
disproportionate tax burden of the municipality. 
SENATE AMENDMENT 
SENATE AMENDMENT "A" to H.P. 844, L.D. 1141 
PARTB 
Sec. B-1. 36 MRSA c. 921 is enacted to read: 
CHAPTER 921 
SMALL BUSINESS JOB CBAn(lf PROPERTY TAX REFUltD 
§690l. Short title 
This chapter may be known and cited as "the Job Creation 
Property Tax Refund Act." 
§6902. Program established: declaration of public pYxPOse 
The Job Creation Property Tax Refund Act is established to 
encourage the creation of net new quality jobs in this State, 
improve and broaden the tax base and improve the general economy 
of the State. 
§6903. Definitions 
As 
used in this chapter, 
unless 
the 
context otherwise 
indicates, the following terms have the following meanings. 
1. 
Affiliated businesses. 
"Affiliated businesses" means 2 
businesses exhibiting either of the following relationships: 
A. 
One business owns 50' or more of the stock of the other 
business 
or 
owns 
a 
controlling 
interest 
in 
the other 
business; or 
B. 
Fifty percent or more of the stock or a controlling 
interest is directly or indirectly owned or acguired by a 
common 
owner 
or 
owners. 
whether 
by 
acguisition 
of 
substantially all of the assets or 5o, or more of the stock 
or through a merger, consolidation or reorganization 
2. 
Affiliated groy.p. 
"Affiliated group" means a qualified 
business and its corresponding affiliated businesses. 
3. 
Applicant. 
"Applicant" means a qualified business that 
has submitted an application for a refund under this chapter. 
4. 
Base level of emplqyment. 
"Base level of employment" 
means the total employment of a business as of the December 31st 
immediately preceding the calendar year for which an application 
SENATE AMENDMENT 
~"" 
\. 
SENATE AMENDMENT "11" to H. P • 844 I 
L.D. 1141 
for 
a 
refund is 
filed 
under 
this 
chapter 
or its 
average 
employment during the base period. whicheyer is greater. 
5. 
Base period. 
"Base period" means the 3 calendar years 
prior to the year in which an application is made under this 
chapter. 
6. 
Labor 
market 
unemplopent 
rate. 
"Labor 
market 
unemployment 
rate" 
means 
the 
aye rage 
unemplo~ent rate 
as 
published by the Department of Labor for the labor market or 
markets in which potential qualified employees are located and in 
which reimbursement is claimed under this chapter for the 12 most 
recently reported months preceding the date of application for a 
refund under this chapter. 
7. 
Qualified business. 
"Qualified business" 
means 
any 
for-profit business in this State. other than a public utility as 
defined 
by Title 
35-11.. 
section 
102. 
with 
a 
base 
leyel of 
employment 
of 
or 
fewer 
employees. 
that 
adds 
qualified 
employees above its base level of employment in this State within 
a calendar year commencing on or after January I. 2004 and that 
meets one of the following criteria: 
A. 
.The business is not engaged in retail operations; 
B. 
The business is engaged in retail operations but less 
than 50\ of its total annual 
revenues 
from Maine-based 
operations are deriyed from sales taxable in this State: or 
C. 
The business is engaged in retail operations and can 
demonstrate that any increased sales will not include sales 
tax revenues derived from 
a 
transferring or shifting of 
retail sales from other businesses in this State. 
For purposes of this subsection. "retail operations" means sales 
Of consumer goods for household use to consumers who personally 
yisit the business location to purchase the goods. 
8. 
Qualified empl~es. 
"Qualified employees" means new. 
full-time employees hired in this State during the preceding 
calendar year by a qualified business whose income derived from 
employment with the applicant. calculated on a 
calendar year 
basis. is greater than the most recent ayerage annual wage in the 
county in which the qualified employee is employed. Qualified 
emplovees must be residents of this State. 
9. 
Rent constituting pro.perty tu;es. 
"Rent constituting 
property taxes" means 25\ of the gross rent actually paid in cash 
or its equiyalent by 
a qualified business for the right of 
SENATE AMENDMENT 
'i?'-'ij 
'i$1' t-\ 
' 
~.'-' 
.26 
SENATE AMENDMENT .. A 
.. to H.P. 844, L.D. 1141 
occupancy of property at which the business operations of the 
qualified business are carried on. 
10. 
State unemplovaent rate. 
"State unemployment rate" 
means the average unemployment rate published by the Department 
of Labor for the State as a whole for the calendar year preceding 
the date of application for a refund under this chapter. 
§6904. Refund allowed 
1. 
Generally. 
Subject to the provisions of subsection 2, a 
qualified business is entitled to refund of a portion of property 
taxes. 
or rent constituting property taxes, 
paid during the 
previous 
calendar 
year. 
The 
amount 
of 
reimbursement 
is 
calculated as follow§, 
A. 
For qualified employees employed by a qualified business 
in state labor market areas in which the labor market 
unemployment rate i§ at or below the state unemployment rate 
at the time of application. the refund is equal to $200 per 
qualified employee. 
B. 
For qualified employees employed by a qualified business 
in state labor market area§ 
in which the labor market 
unemployment rate is greater than the state unemployment 
rate at the time of application, the refund is equal to $400 
per qualified employee. 
C. 
For qualified employee§ employed by a qualified business 
in state labor market areas in which 
the labor market 
unemployment 
rate 
is 
greater 
than 
l50~ of 
the 
state 
unemployment rate at the time of application. the refund is 
equal to $800 per Qualified employee. 
2. 
LimitatioD. 
The refund may not exceed the amount of 
property taxes or rent constituting property taxes paid by the 
applicant during the preceding calendar year. 
§6905. Procedures for applicatioD 
A Qualified business that applies for a refund under this 
chapter shall submit. in a 
form acceptable to the State Tax 
Assessor. the following information: 
1. 
Base level data. 
Employment data necessary to calculate 
the base level of employment: 
2. 
Humber of gpalified employees. 
The number of Qualified 
employees that the applicant added during the preceding calendar 
RML 
SENATE AMENDMENT 
,?~l: 
~'i;:,."", 
e\ f'i.\ u<' 
tto
V 
SENATE AMENDMENT .. A .. to H.P. 844, L.D. 1141 
3. 
ElQplo.pent 
locations. 
A 
listing 
of 
all 
of 
the 
applicant's employment locations within the State and the number 
of employees at each location; 
4. 
Affiliations and data. 
A listing of all affiliated 
business 
and 
affiliated 
groups 
and 
data 
regarding 
current 
employment for each affiliated business in the State; and 
5. 
Tax pUJDent. 
Documentation of property taxes or rent 
constituting property taxes paid by the applicant during the 
preceding calendar year. 
$6906. Procedure for reimhyrsement 
1. 
AePlication by gpa1ified businesses. 
An application for 
a refund under this chapter must be filed by April 15th of each 
year. 
At the time of APplication a gualified business shall 
report 
the 
number 
of 
gualified 
employees 
and 
any 
further 
information the State Tax Assessor may reasonably reguire. 
z. 
Determination ~y State Tax Assessor. 
On or before June 
30th of each year. the State Tax Assessor shall determine the 
refund for each gualified business for the preceding calendar 
year. 
If the total of the refunds due to gualified businesses 
calculated under section 6904. subsection 1 exceeds $20,000,000, 
the State Tax 
Assessor 
shall prorate the 
amounts 
for 
each 
gualified employee under section 6904, subsection 1 so that the 
total does not exceed $4,000,000. 
3. 
DQposit and pgzment of revenue. 
On or before June 30th 
of each year, the Commissioner of Administrative and Financial 
Services shall deposit 
from General 
Fund undedicated revenue 
within the income tax category an amount egual to the total 
refunds due under this chapter for the preceding calendar year to 
a contingent account established. maintained and administered by 
the COmmissioner of Administrative and Financial Services. 
On or 
before July 31st of each year. the Commissioner of Administrative 
and Financial Services shall pay to each approved gualified 
business an amount egual to the refund to which it is entitled 
for the preceding calendar year. 
PART I 
Sec. 1·1. 36 MRSA §S41, sub-§2, as repealed and replaced by PL 
1987, c. 772, §15, is amended to read: 
z. 
Infirmity or poverty. 
The municipal officers or the 
SENATE AMENDMENT 
\iie) 
,."';;. (,\ ... ' 
\"i. ; 
SENATE AMENDMENT "A-" to H.P. 844, L.D. 1141 
State Tax Assessor for the unorganized territory, within 3 years 
from 
commitment, 
may, 
on their own 
knowledge 
or on written 
application 
therefor, 
make 
such 
abatements 
as 
they believe 
reasonable on the real and personal taxes on aJ:,l-"iI'&F-S9:eS the 
primary residence of any person who, by reason of infirmity or 
poverty, al'e II in their judgment unable to contribute to the 
public charges. 
The municipal officers or the State Tax Assessor 
for the unorganized territory may extend the 3-year period within 
which they may make abatements under this subsection. 
Municipal officers or the State Tax Assessor for the unorganized 
territory shall: 
A. 
Provide that any person indicating an inability to pay 
all or part of taxes that have been assessed because of 
poverty or infirmity shall be informed of the right to make 
application under this subsection; 
B. 
Assist individuals in making application for abatement; 
C. 
Make 
available application 
forms 
for 
requesting 
an 
abatement based on poverty or infirmity and provide that 
those forms contain notice that a written decision shall be 
made within 30 days of the date of application; 
D. 
Provide that persons are given the opportunity to apply 
for an abatement during normal business hours; 
E. 
Provide that all applications, information submitted in 
support 
of 
the 
application, 
files 
and 
communications 
relating 
to 
an 
application 
for 
abatement 
and 
the 
determination on the application for abatement shall be 
confidential. 
Hearings 
and proceedings held pursuant to 
this subsection shall be in executive session; 
F. 
Provide to any person applying for abatement under this 
subsection, notice in writing of their decision within 30 
days of application; and 
G. 
Provide that any decision made under this 
shall 
include 
the 
specific 
reason 
or 
reasons 
decision and shall inform the applicant of the 
appeal and the procedure for requesting an appeal. 
subsection 
for 
the 
right to 
Sec. 1·2. 36 MRSA §943-A, as enacted by PL 1985, c. 364, §2, 
is amended to read: 
§943-A. Application for abatement 
SENATE AMENDMENT 
SENATE AMENDMENT "II" to H.P. 844, L.D. 1141 
Beginning with taxes that are assessed after April 1, 198§ 
2004, each notice under seeeieB sections 942 and 1281 waiea that 
is sent by a municipality or the State Tax Assessor to a person 
against whom taxes have been assessedT--shal.;b on that person's 
primary residence must contain a statement that that person may 
apply for an abatement of taxes if the person cannot pay the 
taxes that have been assessed because of poverty or infirmity.' 
PARTJ 
Sec. J-l. 10 MRSA §1023-0 is enacted to read: 
§1023=D. 
Mainely Small Business Capital Fund 
1. 
Creation. 
The 
Mainely Small Business Capital Fund, 
referred to in this section as "the fund," is created under the 
jurisdiction of the authority. 
2. 
Sources of money. 
There must be paid into the fund the 
following: 
A. 
All money appropriated for inclusion in the fund: 
B. 
Subject to any pledge, contract or other obligation, all 
interest, dividends or other pecuniary gains from investment 
of money of the fund: 
C. 
Subject to any pledge, contract or other obligation, any 
money that the authority receives in repayment of advances 
from the fund: and 
D. 
Any other money available to the authority and directed 
by the authority to be paid into the fund. 
3. 
Aeplication of 
fund. 
Money 
in 
the 
fund 
must 
be 
allocated by the authority to the following funds or programs if 
those funds or programs directly benefit businesses with 50 or 
fewer full-time employees; 
A. 
Other existing funds or programs of the authority; 
B. 
Funds or programs of the Maine Technology Institute 
established under Title 5, section 15302: or 
C. 
The 
Small 
Enterprise 
Growth 
Program 
established in 
section 381. 
Priority must be given by the authority to 
those 
funds 
or 
programs specified in paragraphs A to C that create high-guality 
SENATE AMENDMENT 
-~~ 
~'#' ,"-" 
.~. ,,',c, 
SENATE AMENDMENT .. A .. to H.P. 844, L.D. 1141 
jobs, as determined by the authority. 
The authority, pursuant to Title 5, chapter 375, subchapter 2-11., 
shall adopt major substantive rules for determining the process 
and priority of distribution of the fund. 
Money in the fund not 
needed currently to meet the obligations of the authority as 
provided in this section may be invested in a manner permitted by 
law. 
Interest earned on money in the fund may be used to pay the 
costs of the authority in administering the fund. 
4. 
Accounts within fund. 
The authority may divide the fund 
into separate accounts the authority determines necessary or 
convenient for carrying out this section. 
5. 
Revolying fund. 
The fund is a nonlapsing. 
reVOlving 
fund. 
All money in the fund must be continuously applied by the 
authority to carry out this section. 
Sec. J-2. 
Appropriations 
and 
allocations. 
appropriations and allocations are made. 
FINANCE AUT.BORITY OF MAIRE 
Mainely Small Business Capital Fund 
The 
following 
Initiative: 
Appropriates funds to provide start-up and expansion 
capital to businesses with fewer than 50 employees. 
Funds may be 
allocated to those programs within the Finance Authority of 
Maine, the Maine Technology Institute and the Small Enterprise 
Growth Program. 
General Fund 
All Other 
General Fund Total 
SUMMARY 
2003-04 
$0 
$0 
2004-05 
$6,000,000 
$6,000,000' 
This 
amendment 
provides comprehensive tax reform in the 
following ways. 
Part A increases the general sales tax from 
5~ to 
6~ and 
requires that the additional revenue be used to fund property tax 
relief. 
After 
transfers 
to 
the 
Local 
Government 
Fund 
for 
state-municipal 
revenue 
sharing, 
the 
additional 
revenue 
is 
transferred to the Education Funding Stabilization Fund to fund 
property tax relief, including the increase in the State's share 
of the cost of funding public education from kindergarten to 
grade 12. 
SENATE AMENDMENT 
tl4 
~~ fi~. 'Of 
:.·tQ "i-
SENATE AMENDMENT "A" to H.P. 844, L.D. 1141 
Part B does the following: 
1. 
It provides an allocation to general purpose aid for 
local schools in fiscal year 2004-05 of $29,163,745; and 
2. 
It amends 
the statewide local share 
amount of the 
operating costs allocation for fiscal year 2004-05 for purposes 
of education funding and specifies the general purpose aid for 
local schools actual education certification and appropriation 
levels for fiscal year 2004-05 as required by the Maine Revised 
Statutes, Title 20-A, section 15605 to reflect the allocation of 
additional funds. 
Part C increases the homestead property tax exemption for 
all homesteads to $11,000. 
Part 0 changes the Maine Residents Property Tax Program to 
the Homestead Property Tax 
Cap Program. 
It increases income 
eligibility requirements for a property rebate to $40,000 for 
single-member 
households 
and 
$60,000 
for 
multiple-member 
households and increases the maximum payment to $2,000. 
Part E increases state reimbursement to municipalities for 
losses due to current use classification under the Maine Tree 
Growth Tax Law from 90' to 100'. 
Part 
F 
establishes 
spending 
caps 
for 
counties 
and 
municipalities, applying the same standard as current law applies 
to state budget submissions. 
The limits could be exceeded by a 
voter referendum or town meeting vote. 
Part G changes the so-called "Revenue Sharing II" formula to 
direct payments to municipalities where the noneducation portion 
of the tax rate exceeds 6 mills. 
Part H creates the Small Business Job Creation Property Tax 
Refund Act to provide a property tax refund for employers with 
fewer than 25 employees who create new jobs that pay a wage that 
is higher than average annual wage in the county in which the 
employee is employed. 
Part 
I 
restricts 
to 
a 
taxpayer's 
principal 
residence 
property tax abatements based on poverty. 
Part J 
creates the Mainely Small Business Capital 
Fund 
within the Finance Authority of Maine. 
The money in the fund is 
SENATE AMENDMENT 
SENATE AMENDMENT .ft " to H.P. 844, L.D. 1141 
allocated by the authority among its other funds or programs, 
provided to funds or programs of the Maine Technology Institute 
or the Small Enterprise Growth Program if those funds or programs 
assist small businesses. 
Part J 
appropriates $6,000,000 to the 
fund in fiscal year 2004-05. 
SPONSORED BY: 
_ ~ 
F'~ ~ 
(Senator STANLEY 
COUNTY: 
Penobscot 
FISCAL NOTE REQUIRED 
(See Attached) 
SENATE AMENDMENT 
Net Cost (Savings) 
General Fund 
Appropriations! Allocations 
General Fund 
Other Special Revenue Funds 
Revenue 
General Fund 
Other Special Revenue Funds 
Transfers 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
General Fund Appropriations 
Approved: 04127/04 ;t?'ae 
Office of Fiscal and Program Review 
LD 1141 
An Act to Provide Property Tax Relief for Maine Residents and 
Businesses and Implement Comprehensive Tax Reform 
LR0392(06) 
Fiscal Note for Senate Amendment 11" 
Sponsor: Sen. Stanley 
Fiscal Note Required: Yes 
Fiscal Note 
Projections 
2003-04 
2004-05 
2005-06 
$0 
$0 
$0 
$0 
$33,424,519 
$33,836,085 
$0 
$33,508,856 
$5,336,136 
$0 
($28,793,642) 
($29,710,026) 
$0 
$109,646,796 
$126,991,900 
$0 
$62,218,161 
$63,546,111 
$0 
($91,381,906) 
($63,546,111) 
Projections 
2003-04 
2004-05 
2005-06 
Projections 
2006-07 
$0 
$34,358,107 
$5,567,653 
($31,549,633) 
$133,052,237 
$65,907,740 
($65,907,740) 
Projections 
2006-07 
Increase homestead exemption to $11,000, no tier 
$26,916,336 
$27,399,700 
$27,902,963 
Mainely Small Business Capital Fund (FAME) 
$6,000,000 
$6,000,000 
$6,000,000 
Tree Growth Reimbursement 
$100,000 
$102,000 
$104,040 
Administrative and Mandate costs 
$408,183 
$334,385 
$351,104 
Total General Fund Appropriations 
$0 
$33,424,519 
$33,836,085 
$34,358,107 
LR0392(6) - Fiscal Note - Page 1 of 2 
Projections 
Projections 
2003-04 
2004-05 
2005-06 
2006-07 
General Fund Revenue 
Homestead Property Tax Cap Program 
($25,291,220) 
($26,248,785) 
($28,089,585) 
Small Business Job Creation Tax Refund 
($3,796,000) 
($3,792,000) 
($3,792,000) 
Individual income tax - property tax reimbursement 
$293,578 
$330,759 
$331,952 
Total General Fund Revenue 
$0 
($28,793,642) 
($29,710,026) 
($31,549,633) 
Disproportionate Tax Burden Fund - Increases (Decreases) to Balance 
Sales tax to 6% * 
$5,892,504 
$6,965,800 
$7,298,224 
Homestead Property Tax Cap 
($1,359,170) 
($1,439,807) 
($1,540,779) 
Small Business Job Creation Tax Refund 
($204,000) 
($208,000) 
($208,000) 
Individual income tax - property tax reimbursement 
$15,777 
$18,143 
$18,208 
------------------~----------~----------~---
Net Increase (Decrease) 
$0 
$4,345,111 
$5,336,136 
$5,567,653 
Education Funding Stabilization Fund (EFSF) - Increases (Decreases) to Balance 
Sales tax to 6% - Net * 
$109,646,796 
$126,991,900' 
Transfers to General Fund 
($62,218,161) 
($63,546,111) 
$133,052,237 
($65,907,740) 
Allocation to General Purpose Aid for Local Schools 
($29,163,745) 
--------~--~~--~~--~--------~---------
Net Balance Remaining in EFSF 
$0 
$18,264,890 
$63,445,789 
$67,144,497 
* Reflects August 1, 2004 effective date and excludes sales affected by LD 1919 Part V. 
Conflicts with LD 1919 - 2004-2005 Supplemental Budget Bill 
The estimates included in this fiscal note reflect the impact of the bill as amended by this amendment and attempt to 
anticipate the interaction effects of this bill as amended and LD 1919, the 2004-2005 Supplemental Budget Bill, as 
amended by Committee Amendment "A". 
The additional sales tax revenue generated by the 1 % increase is reduced as a result of LD 1919 Part V, which 
changes the sales tax base by moving certain taxable sales to a service provider tax. IfLD 1919 Part V is not enacted, 
the revenue that would accrue to the Education Funding Stabilization Fund and the Disproportionate Tax Burden Fund 
in this bill would be increased. 
This bill also does not reflect the deappropriation in fiscal year 2004-05 as a result of the change of the treatment of 
the Maine Residents Property Tax Program (or "circuit breaker" program) as reductions of individual income tax 
revenue rather than a General Fund appropriation. IfLD 1919 is not enacted, a deappropriation from the Maine 
Residents Property Tax Program will be required and the amount of the net change to General Fund revenue and the 
transfers to the Disproportionate Tax Burden Fund will be increased. 
The General Purpose Aid for Local Schools statutory changes and language establishing the fiscal year 2004-05 
distribution to municipalities assume that the additional $15 million provided in LD 1919 Part N is also 
apprpropriated. If the amounts in LD 1919 are affected, the amounts included in this bill and the statutory and other 
language establishing the distribution will need to be revised accordingly. 
LR0392(6) - Fiscal Note - Page 2 of 2