An Act To Provide Property Tax Relief to Maine Resident Homeowners
Maine Legislature, Session 121, LD 1235
Committee: Taxation
Sponsors: WOODBURY
Amends: 36 MRSA §459, 36 MRSA §6207

Legislative Document 
No. 1235 
H.P.909 
House of Representatives, March 6, 2003 
An Act To Provide Property Tax Relief to Maine Resident 
Homeowners 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative WOODBURY of Yarmouth. 
Printed on recycled paper 
7r/~/J?~ 
Mll.LICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. I. 36 MRSA §459 is enacted to read: 
§459. 
State property tax 
1. 
Tax imposed. 
A state tax is imposed on the just value 
of all residential real property in this State. 
Just value and 
ownership of the property must be determined as of the April 1st 
preceding the assessment. 
The rate of tax is: 
A. 
For assessments made in 2004, 4 mills; 
B. 
For assessments made in 2005, 5 mills; 
c. 
For assessments made in 2006, 6 mills: 
D. 
For assessments made in 2007, 7 mills; 
E. 
For assessments made in 2008, 8 mills; 
F. 
For assessments made in 2009, 9 mills; and 
G. 
For assessments made in 2010 and subsequent years, 10 
mills. 
2. 
Assessment. 
The State Tax Assessor shall assess a tax 
on the just value of all residential real property in this State. 
3. 
Procedure. 
The tax on residential real property must be 
" 
, G 
;4 
assessed and paid in accordance with this subsection. 
A. 
The State Tax Assessor shall make the assessment by May 
30th of each year. 
B. 
The tax assessment must be paid no later than the August 
15th following the date of assessment. 
4. 
Exemption. 
The 
estate 
up 
to 
the 
just 
value 
of 
$1,000,000 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 
under 
this 
section. 
In 
determining the local assessed value of the exemption, the State 
Tax 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 municipal 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 $1,000,000 of the just value of the homestead, but may be 
')0 
apportioned among the owners who reside on the property to the 
Page l-LR1467(1) 
• 
I] 
extent of their respective interests. 
The State Tax Assessor has 
no 
obligation 
to 
create 
separate 
accounts 
for 
each partial 
interest in a homestead owned jointly or in common. 
A person may 
not 
have 
more 
than 
one 
homestead. 
For 
purposes 
of 
this 
subsection, the terms "homestead" and "permanent resident" have 
the same meaning as in section 681. 
" 
5. 
Collection. 
Taxes assessed by the State Tax Assessor 
must be enforced as generally provided by this Title. 
LO 
6. 
Penalty. 
Underpayment 
of 
the 
tax 
imposed 
by 
this 
L2 
section 
and 
underpayment of the 
prepayment of estimated tax 
required by this section are subject to the penalties imposed by 
section 187-B. 
1b 
1. 
Deposit of revenue. 
Taxes collected pursuant to this 
section, including any penalties imposed pursuant to subsection 
6, must be deposited by the State Tax Assessor in a dedicated 
fund for the purpose of funding the Maine Residents Property Tax 
~u 
Program. 
'4 
Sec. 2. 36 MRSA §6207. sub-§1. as amended by PL 1997, c. 557, 
Pt. A, §3 and affected by Pt. G, §l, is repealed. 
Sec. 3. 36 MRSA §6207, sub-§l-A is enacted to read: 
I-A. 
Benefit calculation. 
For 
claimants representing 
a 
'R 
nonelderly household, the benefit is calculated as follows. 
A. 
For a claimant with no dependents and income no more 
than 
$29,100 
and 
for 
claimants 
who 
are 
couples 
or 
individuals 
with 
dependents 
and 
incomes 
no 
more 
than 
$45,100, the benefit is the amount equal to: 
(1) 
Fifty percent of that portion of the benefit base 
that exceeds 4% but does not exceed 6% of income; 
(2) 
Seventy-five 
percent 
of 
that 
portion 
of 
the 
benefit base that exceeds 6% but does not exceed 8% of 
income: and 
(3) 
One hundred percent of that portion of the benefit 
base that exceeds 8% of income. 
B. 
For a claimant with no dependents and income more than 
$29,100 but no more than $39,100 and for claimants who are 
couples or individuals with dependents and incomes more than 
$45,100 but no more than $60,100, the benefit is the amount 
equal to: 
.38 
(1) 
Twenty-five percent of that portion of the benefit 
base that exceeds 4' but does not exceed 6' of income; 
(2) 
Fifty percent of that portion of the benefit base 
that exceeds 6' but does not exceed 8' of income; 
(3) 
Seventy-five 
percent 
of 
that 
portion 
of 
the 
benefit base that exceeds 8' but does not exceed 10' of 
income; and 
(4) 
One hundred percent of that portion of the benefit 
base that exceeds 10' of income. 
C. 
For a claimant with no dependents and income more than 
$39,100 but no more than $49,100 and for claimants who are 
couples or individuals with dependents and incomes more than 
$60,100 but no more than $75,100, the benefit is the amount 
eg:ual to: 
(1) 
Twenty-five percent of that portion of the benefit 
base that exceeds 6' but does not exceed 8~ of income; 
(2) 
Fifty percent of that portion of the benefit base 
that exceeds 8' but does not exceed 10~ of income; and 
(3) 
Seventy-five 
percent 
of 
that 
portion 
of 
the 
benefit base that exceeds 10' of income. 
D. 
For a claimant with no dependents and income more than 
$49,100 but no more than $59,100 and for claimants who are 
couples or individuals with dependents and incomes more than 
$75,100 but no more than $90,100, the benefit is the amount 
eg:ual to: 
(1) 
Twenty-five percent of that portion of the benefit 
base that exceeds 8' but does not exceed 10' of income; 
and 
(2) 
Fifty percent of that portion of the benefit base 
that exceeds 10' of income. 
Sec. 4. 36 MRSA §6207, sub-§2, as amended by PL 1997, c. 557, 
Pt. A, §3 and affected by Pt. G, §l, is further amended to read: 
2. 
Income 
eligibility. 
household incomes in excess of 
Single-member 
households 
with 
$69T+QQ 
$59,100 and households 
wi th 2 or more members with a 
household income in excess of 
$4G T GGG $90,100 are not eligible for a benefit. 
Sec. 5. 36 MRSA §6207, sub-§5 is enacted to read: 
" 
5. 
Maximum benefit. 
Notwithstanding any provision of this 
chapter to the contrary, the maximum benefit available under this 
I" 
program is: 
LO 
A. 
Until January 1, 2004, $1,000: 
(, 
, 
) 
I/... 
B. 
Beginning January 1, 
2004 
until 
December 
31, 
2004, 
$1, 500: 
C. 
Beginning January 1, 
2005 until 
December 
31, 
2005, 
$1, 750; 
D. 
Beginning January 1, 
2006 
until 
December 
31, 
2006, 
$2,000; 
E. 
Beginning January 1, 
2007 
until 
December 
31, 
2007, 
$2,250; 
F. 
Beginning January 1, 
2008 
until 
December 
31, 
2008, 
$2,500; 
G. 
Beginning January 1, 
2009 
until 
December 
31, 
2009, 
$2,750; and 
H. 
Beginning January 1, 2010 and thereafter, $3,000. 
SUMMARY 
The purpose of this bill is to provide property tax relief 
i Ii 
to Maine resident homeowners. 
This would be accomplished through 
methods, as follows. 
1. 
Expanded circuit breaker eligibility. 
This bill expands 
~() 
the income eligibility for participation in the Maine Residents 
Property Tax Program, more commonly known as the "circuit breaker 
ef,: 
program." 
A single-member household with 
household income less 
than 
$59,100 
and 
households 
with 
or 
more 
members 
with 
a 
~4 
household income less than $90,100 are eligible for a benefit. 
2. 
Increased amount of benefit. 
The maximum benefit under 
the circuit breaker program is increased from the present maximum 
l({ 
of $1, 000 to $1, 500 beginning in 2004, and increasing $250 each 
year until 2010, when the maximum benefit is set at $3,000. 
3. 
Statewide real property tax. 
To 
fund the increased 
eligibility and benefits under the circuit breaker program, this 
if 
bill imposes a statewide tax on real property. 
The State Tax 
Assessor would administer the tax. 
The rate is set at 4 mills of 
r) 
the just value beginning in 2004 and increases by one mill each 
year until the mill rate is set at 10 mills beginning in 2010. 
H 
The first $1,000,000 of just value of a home owned by a resident 
is exempt from the property tax, similar to the current exemption 
LO 
under the Maine resident homestead property tax exemption program.