An Act To Reduce Property Taxes
Maine Legislature, Session 121, LD 1421
Committee: Taxation
Sponsors: BRENNAN, STRIMLING, CUMMINGS, SUSLOVIC
Amends: 36 MRSA §683, 36 MRSA §1811

Legislative Document 
No. 1421 
S.P.471 
In Senate, March 25, 2003 
An Act To Reduce Property Taxes 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Senator BRENNAN of Cumberland. 
JOY J. O'BRIEN 
Secretary of the Senate 
Cosponsored by Senator: STRIMLING of Cumberland, Representatives: CUMMINGS of 
Portland, SUSLOVIC of Portland. 
Primed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
PART A 
Sec. A-1. 36 MRSA §683, sub-§1, as enacted by PL 1997, c. 643, 
Pt. HHH, §3 and affected by §10, is amended to read: 
1. 
Exemption amount. 
The estate up to the just value of 
$1TQQQ $20,000 of the homestead of a permanent resident of this 
State who has owned a homestead in this State for the preceding 
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 $1TQQQ $20,000 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 exempt;ion has 
no 
obligation to create separate accounts for each partial interest 
in a homestead owned jointly or in common. 
Sec. A-2. 36 MRSA §1811, first" 
as amended by PL 2001, c. 
439, Pt. TTTT, §2 and affected by §3, is further amended to read: 
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 hotel, rooming 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 
/;% ~ on the value of all other tangible personal property 
and taxable services. 
Value is measured by the sale price, 
except as otherwise provided. 
Sec. A-3. Distribution of revenue. 
The Legislature shall ensure 
that 
50~ of the revenues raised by section 2 of this Part are 
used to fund the increase in the homestead tax exemption enacted 
by section 1 of this Part and that the remaining 50% of those new 
revenues are dedicated to general purpose aid for local schools. 
Funds dedicated for general purpose aid for local schools must be 
in addition to funds otherwise appropriated by the Legislature 
for that purpose. 
PARTB 
Sec. B-1. Statutory referendum procedure; submission at statewide 
election; form of question; effective date. 
This Act takes effect when 
approved only for the purpose of permitting its submission to the 
legal voters of the State at a statewide election held on the 
Tuesday following the first Monday of November following passage 
of this Act. 
The 
municipal 
officers 
of 
this 
inhabitants of their respective cities, 
meet, in the manner prescribed by law 
election, to vote on the acceptance or 
voting on the following question: 
State 
shall notify the 
towns and plantations to 
for holding a statewide 
rejection of this Act by 
"Do you favor increasing the sales tax imposed on tangible 
personal property and taxable services from 
5% 
to 
6% 
in 
order to 
fund 
in equal proportions 
an 
increase 
in the 
homestead 
tax 
exemption 
from 
$7,000 
to 
$20,000 
and 
to 
provide an addition to funds for general purpose aid for 
local schools?" 
The legal voters of each city, town and plantation shall 
vote by ballot on this question and designate their choice by a 
cross or check mark placed within the square below the word "Yes" 
or 
"No." 
The ballots must be 
received, 
sorted, 
counted and 
declared in open ward, town and plantation meetings and returns 
made to the Secretary of State in the same manner as votes for 
members 
of 
the 
Legislature. 
The 
Governor 
shall 
review 
the 
returns and, if it appears that a majority of the legal votes are 
cast in favor of the question the Governor shall proclaim that 
fact without delay, and Part A takes effect 30 days after the 
date of the proclamation. 
The Secretary of State shall prepare and furnish to each 
city, town and plantation all ballots, returns and copies of this 
Act necessary to carry out the purposes of this referendum. 
SUMMARY 
This bill requires a 
referendum question on the November 
ballot that asks the voters of the State to increase the state 
sales tax from 
5% to 6% in order to fund an increase in the 
homestead tax exemption from $7,000 to $20,000 and to provide 
additional revenues for general purpose aid for local schools.