An Act To Provide Property-Tax Relief to Maine Homeowners
Maine Legislature, Session 121, LD 1824
Senate Amendment SA_A_S602 (Senate)
Amends: 36 MRSA §6201-A, 36 MRSA §6203-A, 36 MRSA §6207, 36 MRSA §6209, 36 MRSA §6218, 36 MRSA §6219, 36 MRSA §6220

SENATE AMENDMENT "A" to H.P. 1347, L.D. 1824, Bill, "An Act 
To Provide Property-Tax Relief to Maine Homeowners" 
Amend the bill by striking out everything after the title 
and before the summary and inserting in its place the following: 
. Be it enacted by the People of the State of Maine as follows: 
Sec. I. 36 MRS A c. 907, as amended, is further amended by 
repealing the chapter headnote and enacting in its place the 
following: 
CHAPTER 907 
HC»mSTEAD TAX CAP PROGRAM 
Sec. 2. 36 MRSA §6201-A, as enacted by PL 1989, c. 534, Pt. 
A, §4, is amended to read: 
§6201-A. 
Short title 
This chapter sha-U.--ae II known and may be cited as the 
"Ma:i:Re-Res:i:eeRts-P;E'Spe;E'ty-';I;'aH Homestead Tax Cap Program." 
Sec. 3. 36 MRSA §6203-A, as enacted by PL 2003, c. 673, Pte 
BB, §2, is amended to read: 
§6203-A. 
Procedure for reimbursement 
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 
SENATE AMENDMENT 
~. .. fO. 
SENATE AMENDMENT ·It .. to H.P. 1347, L.D. 1824 
established, maintained and administered by the State Controller 
from the General Fund undedicated revenue within the individual 
income tax category. A~-~ea6~-meB~~Y7-~~~-~b&~~~&~-ae 
maee-as-pFevieee-iB-see~ieB-9aQ~T 
Sec. 4. 36 MRSA §6207, as amended by PL 1999, c. 494, §l, is 
further amended to read: 
§6207. 
Calculation of benefits for nonelderly households 
A claimant representing a nonelderly household qualifies for 
the 
following 
benefits 
sQB;ee~---~--~~--~~~~~~---iBeeme 
limi~a~ieBs. 
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% but does not exceed 8% of income plus 100'l-o of 
that portion of the benefit base that exceeds 8% of income 
to a maximum payment of $lTQQQ $3.000. 
3T---~--eli~ihili~YT---~~~--~~--wi~h 
heQsehele-4~~-~-eHee&&-e~-~~aQ-keQsekeles-~~~-~-eF 
meFe-memgeES-w4~k-~~~~4~~~~~~~-aF&-Be~ 
eli§iale-~eF-a-aeBe~i~T 
3. 
Subsidized housinq; special needs payment. 
A claim may 
not be granted under this section to claimants: 
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 
rece1v1ng 
social 
security 
disability 
or 
supplemental security income disability benefits. 
4. Minimum benefit. 
A claim of less than $10 may not be 
granted. 
Sec. S. 36 MRSA §6209, sub-§l, as amended by PL 1989, c. 508, 
§25, is further amended to read: 
§6209. 
Annual adjustment 
1. 
Household 
income 
adjustment; 
elderly 
households. 
Beginning March 1, 1989, and annually thereafter, the State Tax 
Assessor 
shall 
determine 
the 
household 
income 
eligibility 
adjustment factor. That factor shaU.--ae II multiplied by the 
income limitations in section 6206, applicable for the year prior 
SENATE AMENDMENT 
~.~eo 
SENATE AMENDMENT ·ff .. to H.P. 1347, L.D. 1824 
to that for which relief is requested. The result saaJ:.J:.-ee is 
rounded to the nearest $100 and saall-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~ea-l7-~~~~7-~~~~~~~~~~~~~yeG-~-aa}as~-~he 
iBeeffie-liffii~aeieB-iB-seeeieB-9~Q77-saBseeeieB-aT 
Sec. 6. 36 MRS A §6210, as amended by PL 1997, c. 557, Pt. A, 
§4 and affected by Pt. G, §l, is further amended to read: 
§62l0. Administration 
The State Tax Assessor shall make available sui table forms 
wi th instructions for claimants. The claim shall ~ 
be in the 
form the State Tax Assessor 
ffiai'-~e-S€~,i:Be prescribes and shall 
~ 
be signed by the claimant. 
The State Tax Assessor shall include a checkoff to request 
an application for the MaiBe-ResiaeBes-P~epe~ei'-~aH Homestead Tax 
.c.sm Program on the individual income tax form. 
The assessor 
shall also provide for the option of filing an application for 
the Ma:iBe--R-e&:i.Qen.t-s--P-r-o-pe-R.~-~aH Homestead Tax Cap Program using 
the telefile system established by the assessor. 
Sec. 7. 36 MRSA §6218, as enacted by PL 1989, c. 534, Pt. A, 
§10, is amended to read: 
§62l8. 
Readability: application; instructions 
The application form and instructions used by applicants for 
assistance under the 
MaiBe--R-e&:i4e&t.-s--P-FGpe-R.~-~aH Homestead Tax 
.c.sm 
Program 
and its successor, if any, 
saall ~ 
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. 8. 36 MRSA §6219, as amended by PL 1997, c. 526, §14, is 
further amended to read: 
§62l9. 
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 MaiBe-Re6,i:aeBes-P*epe~ey 
~aH Homestead Tax Cap Program and its successor, if any. 
Sec. 9. 36 MRSA §6220, as amended by PL 1997, c. 668, §40, is 
further amended to read: 
§6220. 
Coordination required 
SENATE AMENDMENT 
~fb. 
~. 
SENATE AMENDMENT ,~, to H.P. 1347, L.D. 1824 
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 
MaiIie---&e&i.QeR-S--...p.FGpe-r-t-y---~aH 
Homestead Tax 
Cap Program and the outreach plan required by 
section 6219. 
Sec. 10. Revision of account. 
The Department of Administrative 
and Financial 
Services is directed to 
change 
references 
to 
accounts 
named 
"Maine 
Residents 
Property 
Tax 
Program" 
to 
"Homestead Tax Cap Program." 
Sec. 11. Application. 
This Act applies to applications for 
benefits on or after August 1, 2005. 
Sec. 12. Exception to limitations on transfers. 
Notwithstanding 
the limitations on the amounts transferred to the circuit breaker 
reserve, established in the Maine Revised Statutes, Title 36, 
section 6203-A and Public Law 2003, chapter 673, Part BB, 
the 
State Tax Assessor may certify amounts above any limitation to 
provide the necessary transfers to fund the additional benefits 
authorized by this Act. 
Sec. 13. Statutory referendum procedure; submission at general 
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 the next general election in the 
month of November following passage of this Act. 
The municipal 
officers of this State shall notify the inhabitants of their 
respective cities, towns and plantations to meet, in the manner 
prescribed by law for holding a statewide election, to vote on 
the 
acceptance or rejection of this 
Act 
by 
voting 
on 
the 
following question: 
"Do you want to limit property taxes to no more than 6'lt. of 
income for almost all Maine residents?" 
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 a corresponding 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 Act, the Governor shall proclaim that 
SENATE AMENDMENT 
.fO· 
.~ 
SENATE AMENDMENT '4" to H.P. 1347, L.D. 1824 
fact without delay, and the Act 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 amendment replaces the bill. 
This amendment will submit to the voters at referendum a tax 
reform proposal that transforms the Maine Residents Property Tax 
Program into a true homestead property tax cap program that will 
provide a benefit to all Maine residents whose property taxes 
exceed 4% of their income. 
Income eligibility requirements are 
eliminated. 
The effect of these changes is to establish a cap on 
property taxes exceeding 
6% 
of 
income 
for nearly all Maine 
residents. 
The maximum rebate is $3,000. 
(\ 
f 
SPONSORED BY, ~ 
~~ 
(Senator DAMON) 
COUNTY: 
Hancock 
FISCAL NOTE REQUIRED 
(See Attached) 
SENATE AMENDMENT 
Referendum Costs 
Approved: 04129/04 ,;::!:p'ae. 
Office of Fiscal and Program Review 
LD 1824 
An Act To Provide Property Tax Relief to Maine Homeowners 
LR 2194(16) 
iL 
Fiscal Note for S~nate Amendment 1'1" 
Sponsor: Sen. Damon 
Fiscal Note Required: Yes 
Fiscal Note 
Current biennium cost increase - General Fund 
Potential future biennium cost increase - General Fund 
MonthlY ear 
Election Type 
Question 
Nov-04 
General 
Referendum 
Length 
Standard 
The Secretary of State's budget includes sufficient funds to accommodate one ballot of average length for the genera 
election in November. If the number or size of the referendum questions increases the ballot length, an additional 
appropriation of $8,000 or more may be required. 
If approved by the voters in November 2004, this bill would implement a Homestead Tax Cap Program. The 
estimated annual reduction of General Fund revenue as a result of this program would be approximately $45,000,000 
beginning in fiscal year 2005-06. The annual administrative costs would be approximately $150,000. 
LR2194(l6) - Fiscal Note - Page 1 of 1