An Act To Provide Property Tax Relief to Maine Homeowners
Maine Legislature, Session 121, LD 1824
Committee: Taxation
Sponsors: COLWELL
Amends: 20-A MRSA §1310, 20-A MRSA §1703, 36 MRSA §191, 36 MRSA §6251, 36 MRSA §6253

Legislative Document 
No. 1824 
H.P.1347 
House of Representatives, January 7,2004 
An Act To Provide Property Tax Relief to Maine Homeowners 
(EMERGENCY) 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Speaker COLWELL of Gardiner. 
/J(~ 
/J7.7Jlac~ 
MILLICENT M. MacFARLAND 
Clerk 
Under suspension of the rules, cosponsored by President DAGGETT of Kennebec and 
Representatives: ADAMS of Portland, BARSTOW of Gorham, BENNETT of Caribou, 
BLANCHETTE of Bangor, BLISS of South Portland, BREAULT of Buxton, BRUNO of 
Raymond, BULL of Freeport, BUNKER of Kossuth Township, CANAVAN of Waterville, 
CLARK of Millinocket, COWGER of Hallowell, CRAVEN of Lewiston, CUMMINGS of 
Portland, DUDLEY of Portland, DUPLESSIE of Westbrook, DUPREY of Medway, EARLE 
of Damariscotta, FAIRCLOTH of Bangor, FINCH of Fairfield, FISCHER of Presque Isle, 
GAGNE-FRIEL of Buckfield, GERZOFSKY of Brunswick, GOODWIN of Pembroke, 
Printed on recycled paper 
GROSE of Woolwich, HATCH of Skowhegan, HUTTON of Bowdoinham, JACKSON of Fort 
Kent, KANE of Saco, KETTERER of Madison, KOFFMAN of Bar Harbor, LANDRY of 
Sanford, LEMOINE of Old Orchard Beach, LERMAN of Augusta, LESSARD of Topsham, 
LUNDEEN of Mars Hill, MAILHOT of Lewiston, MAKAS of Lewiston, McGLOCKLIN of 
Embden, McKEE of Wayne, McLAUGHLIN of Cape Elizabeth, MILLS of Farmington, 
MOODY of Manchester, NORBERT of Portland, NORTON of Bangor, O'NEIL of Saco, 
PARADIS of Frenchville, PATRICK of Rumford, PELLON of Machias, PERCY of 
Phippsburg, PERRY of Calais, PERRY of Bangor, PINGREE of North Haven, PIOTTI of 
Unity, RICHARDSON of Brunswick, SA VIELLO of Wilton, SIMPSON of Auburn, SMITH 
of Monmouth, SMITH of Van Buren, SULLIVAN of Biddeford, SUSLOVIC of Portland, 
THOMAS of Orono, THOMPSON of China, USHER of Westbrook, WALCOTT of Lewiston, 
WATSON of Bath, WHEELER of Kittery, Senators: BRYANT of Oxford, DOUGLASS of 
Androscoggin, EDMONDS of Cumberland, GAGNON of Kennebec, HALL of Lincoln, 
HATCH of Somerset, LaFOUNTAIN of York, MARTIN of Aroostook, MAYO of Sagadahoc, 
ROTUNDO of Androscoggin, STANLEY of Penobscot, TREAT of Kennebec. 
Printed on recycled paper 
Emergency preamble. Whereas, Acts of the Legislature do not 
become effective until 90 days after adjournment unless enacted 
as emergencies; and 
Whereas, property taxes 
are continuing to increase each 
year; and 
Whereas, this increase of property taxes is causing some 
Maine residents to leave their homes, some of which have been in 
the families of the residents for generations; and 
Whereas, it is 
imperative that this 
crisis be alleviated as 
soon as possible 
hardship to the citizens of Maine; and 
high property tax 
to prevent further 
Whereas, in the judgment of the Legislature, these facts 
create an emergency within the meaning of the Constitution of 
Maine 
and 
require 
the 
following 
legislation 
as 
immediately 
necessary for the preservation of the public peace, health and 
safety; now, therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 20-A MRSA §1310, sub-§6, as repealed and replaced by 
PL 2003, c. 212, §1, is amended to read: 
6. 
Enforcement. 
If a municipal treasurer fails to pay the 
installment due, or any part, on the dates required, to initiate 
collection procedures, the treasurer of the school administrative 
district may notify the municipal treasurer of the failure to 
pay. 
Interest accrues on each unpaid installment at the rate 
established under Title 36, section 186 beginning on the 60th day 
after the date the installment is due under subsection 4. 
If 
payment of an installment is not made within 60 days after the 
due date, the treasurer of the district may initiate an action in 
Superior Court to compel payment of the delinquent installment. 
The court shall determine the amount owed by the municipality to 
the district and shall order the municipal treasurer to pay all 
delinquent installments, accrued interest and any court costs and 
reasonable attorney's fees incurred by the district. 
To ensure 
prompt payment of the delinquent installments, 
the court may 
require that amounts due to the municipality from the State under 
Title 30-A, section 5681 and Title 36, see1:ieBs section 578 aBe 
gSe be paid to the district until the amount determined by the 
court 
is 
satisfied. 
The 
court 
shall 
promptly 
notify 
the 
disbursing state agency of the determination and direct the 
agency to make the required change in payee and the amounts to be 
paid. 
If additional funds 
are needed to satisfy the 
amount 
determined by the court to be paid to the district, the court may 
order the attachment or trustee process and sale of real or 
Page l-LR2194(1) 
personal property owned by the municipality or the attachment of 
the municipality's bank accounts or require property tax payments 
to the municipality to be turned over to the court and may pay 
the amount owed the district from the proceeds and return any 
excess to the municipality. 
Sec. 2. 20-A MRSA §1703, sub-§6, as repealed and replaced bX 
PL 2003, c. 212, §2, is amended to read: 
6. 
Enforcement. 
If a municipal treasurer fails to pay the 
installment due, or any part, on the dates required, to initiate 
collection procedures, 
the treasurer of the 
community school 
district may notify the municipal treasurer of the failure to 
pay. 
Interest accrues on each unpaid installment at the rate 
established under Title 36, section 186 beginning on the 60th day 
after the date the installment is due under subsection 4. 
If 
payment of an installment is not made within 60 days after the 
due date, the treasurer of the district may initiate an action in 
Superior Court to compel payment of the delinquent installment. 
The court shall determine the amount owed by the municipality to 
the district and shall order the municipal treasurer to pay all 
delinquent installments, accrued interest and any court costs and 
reasonable attorney's fees incurred by the district. 
To ensure 
prompt payment of the delinquent installments, 
the court may 
require that amounts due to the municipality from the State under 
Title 30-A, section 5681 and Title 36, seet:ieBs section 578 aBa 
be paid to the district until the amount determined by the 
court 
is 
satisfied. 
The 
court 
shall 
promptly 
notify 
the 
disbursing state agency of the determination and direct the 
agency to make the required change in payee and the amounts to be 
paid. 
If additional funds 
are needed to satisfy the 
amount 
determined by the court to be paid to the district, the court may 
order the attachment or trustee process and sale of real or 
personal property owned by the municipality or the attachment of 
the municipality's bank accounts or require property tax payments 
to the municipality to be turned over to the court and may pay 
the amount owed the district from the proceeds and return any 
excess to the municipality. 
Sec. 3. 32 MRSA §llOl, sub-§4-A, 1[C, as amended by PL 1995, c. 
325, §5, is further amended to read: 
C. 
Households as defined in Title 36, 
seet:ieBs--6-2-().6...-aBa 
9aQ1 section 6222, subsections 3 and 7. 
Sec. 4. 36 MRSA §191, sub-§2, 1[S, as corrected by RR 1995, c. 
2, §89 and amended by PL 1997, c. 526, §14, is further amended to 
read: 
S. 
The disclosure to an authorized representative of the 
Department 
of 
Human 
Services 
of 
the 
names 
and 
social 
security 
numbers 
of 
applicants 
for 
the 
Maine 
&eSiQeR~S 
Homestead Property Tax Relief Program for the purpose of 
identifying those who 
are not eligible for that program 
pursuant 
to 
section 
96g7 
QllQ, 
subsection 
~~. 
The 
Department of 
Human 
Services 
may 
not disclose 
names 
or 
social 
security 
numbers 
to 
any 
person, 
agency 
or 
organization, other than the Bureau of Revenue Services, nor 
may those names and social security numbers be used for any 
purpose other than the purpose stated in this paragraph: 
Sec.S. 36 MRSA c.IOS, sub·c. 4.8, as amended, is repealed. 
Sec. 6. 36 MRSA c. 907, as amended is repealed. 
Sec. 7. 36 MRSA c. 907·A is enacted to read: 
CHAPTER 901-A 
MAIllE HOMESTEAD PROPERTY TAX RELIEF PROGRAM 
§6221. 
Estab1ishment: short tit1e 
The Maine Homestead Property Tax Relief Program, referred to 
in this chapter as "the program" is established. 
This chapter is 
known and may be cited as 
"the Maine Homestead Property Tax 
Relief Program." 
§6222. 
Definitions 
As 
used 
in this 
chapter, 
unless 
the 
context 
otherwise 
indicates, the following terms have the following meanings. 
1. 
Benefit base. 
"Benefit base" 
means 
property 
taxes 
accrued or rent constituting property taxes accrued. In the case 
of 
a 
claimant 
paying 
both 
rent 
and 
property 
taxes 
for 
a 
homestead, "benefit base" means both property taxes accrued and 
rent constituting property taxes accrued. 
2. 
C1aimant. 
"Claimant" means: 
A. 
An individual who has filed a claim under this chapter 
and was domiciled in this State and occupied a homestead in 
this State during the entire calendar year preceding the 
year in which a claim for relief under this chapter is filed; 
B. 
In the case of a married couple, 
the 
individuals 
collectively; or 
c. 
An individual who has filed a claim under this chapter 
and who was domiciled in this State and owned or otherwise 
maintained 
a 
homestead in this State during the entire 
calendar year preceding the year in which the claim for 
relief 
under 
this 
chapter 
is 
filed 
and 
occupied 
that 
homestead for at least 6 months during that year. 
Regardless 
of 
how 
many 
names 
of 
individuals 
appear 
on 
the 
property deed, the person who meets the qualifications described 
in this subsection and proves sole responsibility for the payment 
of the property taxes on the subject property is the claimant 
with respect to that property. If 2 or more individuals meet the 
qualifications in this subsection and share the payment of the 
rent or the responsibility for the payment of the property taxes, 
each individual may apply on the basis of the rent paid or the 
property taxes levied on the homestead that reflect the ownership 
percentage of the claimant and the claimant's household. 
If 2 or more individuals claim the same property, the matter must 
be referred to the State Tax Assessor, whose decision is final. 
Ownership of a homestead under this chapter may be by fee, by 
life tenancy, by bond for deed, 
as mortgagee or by any other 
possessory interest in which the owner is personally responsible 
for the tax for which a refund is claimed. 
3. 
Elderly 
household. 
"Elderly 
household" 
means 
a 
household in which: 
A. 
At least one member of the household has attained 62 
years of age during the year for which relief is requested: 
B. 
The claimant is currently not married and has attained 
years 
of 
age 
during 
the 
year 
for 
which 
relief is 
requested 
and is, 
due 
to disability, 
receiving 
federal 
disability payments, such as supplemental security income; or 
C. 
The claimant is currently married and has attained 55 
years of age during the year for which relief is requested 
and both the claimant and the claimant's spouse are, due to 
disability, receiving federal disability payments, such as 
supplemental security income. 
4. 
Equalized property tax rate. 
"Equalized property tax 
rate" means the municipal property tax rate for the property tax 
year beginning April 1st of the prior calendar year, multiplied 
by 
the 
overall 
assessment 
ratio 
for 
developed 
residential 
property as determined by the State Tax Assessor and included in 
the most recently certified state valuation. 
5. 
Gross rent. 
"Gross rent" means rental paid at arm's 
length 
solely 
for 
the 
right 
of 
occupancy 
of 
a 
homestead, 
exclusive of charges 
for 
any utilities, 
services, 
furniture, 
furnishings or appliances furnished by the landlord as part of 
the rental agreement, whether or not expressly set out in the 
rental agreement. If the landlord and tenant have not dealt with 
each other at arm's 
length, 
and 
the State Tax 
Assessor is 
satisfied that the gross rent charged was excessive, the State 
Tax Assessor may adjust the gross rent to a reasonable amount for 
purposes of this chapter. 
6. 
Homestead. 
"Homestead" means any residential property 
in this State assessed as real property owned or rented by a 
claimant or held in a revocable living trust for the benefit of 
the claimant and occupied by the claimant and the claimant's 
dependents as the claimant's permanent residence. 
A homestead 
may consist of a part of a multidwelling or multipurpose building 
and a part of the land, up to 10 acres, upon which it is built. 
If 
the 
homestead 
is 
located 
in 
a 
multiunit 
building, 
the 
homestead is the portion of the building actually used as the 
principal dwelling and its percentage of the value of the common 
elements and of the value of the tax lot upon which it is built. 
The 
percentage is the value of 
the unit consisting of 
the 
homestead compared to the total value of the building exclusive 
of the common elements, if any. 
For purposes of this subsection, 
"owned" includes a vendee in possession under a land contract and 
of one or more joint tenants or tenants in common. 
"Homestead" 
does not include any real property used solely for commercial 
purposes. 
7. 
Household. 
"Household" means a claimant and spouse and 
members of the household for whom the claimant under this chapter 
is entitled to claim an exemption as a dependent under Part 8 for 
the year for which relief is requested. 
8. 
Household :i,ncome. 
"Household income" means all income 
received by all persons of a household in a calendar year while 
members of the household. 
9. 
Household 
jncQme 
eligibility 
adjustment 
factor. 
"Household income eligibility adjustment factor" means one plus 
the annualized cost-of-living adjustments 
for Social Security 
retirement benefits during the year for which relief is requested. 
10. 
Income. 
"Income" means the sum of Maine adjusted gross 
income 
determined in accordance with Part 8, 
the 
amount 
of 
capital gains excluded from adjusted gross income, the absolute 
value of the amount of trade or business loss, net operating loss 
carry-over, capital loss, rental loss, farm loss, partnership or 
S Corporation loss included in adjusted gross income, alimony, 
inheritance, life insurance proceeds paid on death of insured, 
nontaxable lawsuit rewards, such as slander, libel and pain and 
suffering, excluding reimbursements such as medical and legal 
expenses associated with the case, 
support money, 
nontaxable 
strike benefits, the gross amount of any pension or annuity, 
including railroad retirement benefits, all payments 
received 
under 
the 
federal 
Social 
Security 
Act, 
state 
unemploymen~ 
insurance 
laws, 
veterans' 
disability 
pensions, 
nontaxable 
interest received from the Federal Government or any of its 
instrumentalities, 
interest 
or 
dividends 
on 
obligations 
or 
securities of this State 
and its political subdivisions 
and 
authorities, workers' compensation and the gross amount of 
"loss 
of time" insurance, cash public assistance and relief, but not 
including relief granted under this chapter. "Income" does not 
include the first $5,000 in the proceeds from a life insurance 
policy, whether paid in a lump sum or in the form of an annuity. 
"Income" 
does 
not 
include 
a 
rollover 
from 
an 
individual 
retirement 
account, 
pension or 
annuity 
fund 
or 
plan 
to 
an 
individual retirement account. pension or annuity fund or plan 
even if the 
amount of the rollover is includable in Maine 
adjusted gross income. "Income" also does not include gifts from 
nongovernmental sources or surplus foods or other relief in kind 
supplied by a governmental agency. 
11. 
Municipality. 
"Municipality" means 
any incorporated 
town, city or plantation in this State. 
For purposes of this 
chapter, "municipality" includes the unorganized territory, 
12. 
Permanent residence. "Permanent residence" means that 
place where an individual has a true, fixed and permanent home 
and principal establishment to which the individual, 
whenever 
absent. has the intention of returning. An individual may have 
only one permanent residence at a time and, 
once a permanent 
residence is established, that residency is presumed to continue 
until circumstances indicate otherwise. 
13. 
Permanent 
resident. 
"Permanent 
resident" 
means 
an 
individual who has established a permanent residence. 
14. 
Property taxes accrued. 
"Property taxes accrued" means 
property 
taxes 
exclusive 
of 
special 
assessment. 
delinguent 
interest and charges for service levied on a claimant's homestead 
in this State as of April 1, 2004, or any tax year thereafter. If 
a homestead is owned by 2 or more persons or entities as joint 
tenants or tenants in common, and one or more persons or entities 
are not members of the claimant's household, 
"property taxes 
accrued" is that part of property taxes levied on the homestead 
that reflects the ownership percentage of the claimant and the 
claimant's 
household. 
If 
a 
claimant 
and 
spouse 
own 
their 
homestead for part of the year for which relief is reguested and 
rent it or a different homestead for part of the same tax year, 
"property taxes accrued" means taxes levied on the homestead on 
April 1st, multiplied by the percentage of 12 months that the 
property was owned and occupied by the household as its homestead 
during the year for which relief is requested. When a household 
owns and occupies 2 or more different homesteads in this State in 
the same tax year, "property taxes accrued" relates only to that 
property occupied by the household as a homestead on April 1st. 
I f 
a homestead is an integral part of a larger unit such as a 
farm, or a multipurpose or multidwelling building, property taxes 
accrued are that percentage of the total property taxes accrued 
that the value of the homestead is of the total value, except 
that property taxes accrued do not include any portion of taxes 
claimed as a business expense for federal income tax purposes. 
15. 
Prior calendar year. 
"Prior calendar year" means the 
calendar 
year 
prior 
to 
the 
calendar 
year 
during 
which 
an 
application for relief is filed pursuant to this chapter. 
16. 
Property tax relief pament. 
"Property tax relief 
payment" means the property tax reimbursement payment provided to 
claimants pursuant to sections 6228, 6229 or 6230, which may not 
exceed the amount of property taxes actually owed by the claimant. 
17. 
Rent constituting property taxes accrued for elderly 
household. 
"Rent constituting property taxes accrued for 
an 
elderly household" means 25'+0 of the gross rent actually paid in 
cash or its equivalent in any tax year by a claimant and the 
claimant's household solely for the right of occupancy of their 
Maine homestead in the tax year and that constitutes the basis, 
in the succeeding calendar year, of a claim for relief under this 
chapter. 
18. 
Rent constituting property taxes accrued for nonelderly 
household. 
"Rent 
constituting 
property 
taxes 
accrued 
for 
nonelderly household" means 20'+0 of the gross rent actually paid 
in cash or its equivalent in any tax year by a claimant and the 
claimant's household solely for the right of occupancy of their 
Maine homestead in the tax year and that constitutes the basis, 
in the succeeding calendar year, of a claim for relief under this 
chapter. 
19. 
Unit. 
"Unit" 
refers 
to 
the 
parcel 
of 
property 
separately assessed of which the homestead is a part. 
20. 
Year for which relief is requested. 
"Year for which 
relief is requested" means the calendar year preceding that in 
which the claim is filed. 
§6223. 
Permanent residency; factual determination by assessor 
The 
assessor 
shall 
determine 
whether 
a 
claimant 
has 
a 
permanent residence in this State. In making a determination as 
to the intent of an individual to establish a permanent residence 
in this State, the assessor may consider: 
1. 
FOrmal 
declarations. 
Formal 
declarations 
of 
the 
claimant or any other individual; 
2. 
Informal 
statements. 
Informal 
statements 
of 
the 
claimant or any other individual; 
3. 
Place of emplo~nt. 
The place of employment of the 
claimant; 
4. 
Previous perDlanent residence. 
The previous permanent 
residence of the claimant and the date the previous permanent 
residency was terminated; 
5. 
Voter registration. 
The place where the claimant is 
registered to vote; 
6. 
Driver's license. 
The place of issuance to the claimant 
of a driver's license and the address listed on the license; 
1. 
Certificate of motor vehicle registration. 
The place of 
issuance of a certificate of registration of a 
motor vehicle 
owned by the claimant and the address listed on the certificate; 
8. 
Income tax returns. 
The residence claimed on any income 
tax return filed by the claimant; 
9. 
Motor vehicle excise tax. 
The place of payment of a 
motor vehicle excise tax by the claimant; and 
10. 
Military residence. 
A declaration by the claimant of 
permanent 
residence registered with any branch of 
the 
Armed 
Forces of the United States. 
§6224. 
Claim is personal 
The right to file a claim under this chapter is personal to 
the claimant and does not survive the claimant's death, but the 
right may be exercised on behalf of a claimant by the claimant's 
legal guardian or attorney-in-fact. If a 
claimant dies after 
haying filed a timely claim, the amount thereof must be disbursed 
to 
another 
member 
of 
the 
household 
as 
determined 
by 
the 
assessor. 
If the claimant was the only member of a household, 
the claim may be paid to the claimant's personal representative, 
but if one is not appointed within 2 years of the filing of the 
claim. the amount of the claim escheats to the State. 
§6225. 
Claim to be paid from General Fund 
The amount of the claim after certification by the assessor 
pursuant to section 6234 
must be paid to claimant 
from 
the 
General Fund. 
Interest is not allowed on any payment made to a 
claimant pursuant to this chapter. 
§6226. One claim per household 
Only one claimant per household or homestead per year is 
entitled to relief under this chapter. 
§6227. 
Application for property tax relief p~nt 
1. 
Generally. 
A property tax relief payment pursuant to 
this chapter is not allowed except upon application for 
the 
property tax relief payment in a manner and on a form prescribed 
by the assessor. 
The assessor may require that the application 
submitted 
pursuant 
to 
this 
section 
contain 
any 
information 
reasonably 
required 
for 
the 
administration of this 
chapter, 
including any 
information necessary to verify the claimant's 
extent of eligibility for a property tax relief payment. 
All 
applications are considered as if made under oath and a claimant 
is subject to the penal ties provided by law for perjury with 
respect to false declarations. 
The assessor may provide for the 
option of filing an application by telephone using a 
system 
established by the assessor. 
A property tax relief payment is 
allowed pursuant to this chapter for a claimant whose ownership 
of an interest in a homestead is satisfied by the holding of the 
beneficial interest if legal title to or share in the homestead 
is held by another for the benefit of the claimant. 
2. 
Application form. 
A claimant making a claim for the 
first time for a homestead in this State shall file the claim for 
a property tax relief payment by applicat~on to the assessor on a 
form prescribed by the assessor. 
Following the initial claim, a 
claim may be submitted either: 
A. 
As 
part of 
the 
claimant's 
income 
tax return filed 
pursuant 
to 
Part 
by 
providing 
all 
the 
information 
requested by the assessor; or 
B. 
On a form prescribed by the assessor if: 
(1) 
The claimant is not required to file an income tax 
return; or 
(2) 
The 
claimant has 
filed an application for 
an 
extension of time to file the claimant's income tax 
return. 
In calendar year 2004, the application must be submitted on a 
form as prescribed by the assessor. 
3. 
Filing period. 
In calendar year 2004, applications must 
be filed by June 1, 2004. 
In subsequent years, applications for 
a 
new or first-time tax relief payment must be filed between 
January 1st and April 15th unless the filing period has been 
extended pursuant to sUbsection 4. 
4. 
Extensions. 
In case of sickness, absence or disability 
or if, in the judgment of the assessor, good cause exists, the 
assessor may extend the time for filing a property tax relief 
payment, application for a period not to exceed 120 days. 
An 
extension may not be granted in calendar year 2004. 
§6228. 
Property tax relief payment for homestead owners 
1. 
Generally. 
A claimant who has owned and occupied a 
homestead in this State during the entire prior calendar year is 
entitled to a direct payment from the State in an amount equal to 
the property taxes actually paid on the first $14,000 of the just 
value of the claimant's homestead as valued and assessed by the 
municipality in which the property is located as determined by 
the assessor. 
The amount of the property tax relief payment is 
based on the municipality in which the claimant's homestead was 
located on April 1st of the prior calendar year. 
2. 
Multiple 
claimants. 
Only 
one 
property 
tax 
relief 
payment per homestead is allowed. 
If title to a homestead is 
held by more than one individual as joint tenants, tenants by the 
entirety or tenants in common, 
the property tax relief payment 
must be jointly allowed to those eligible occupants as listed on 
the property tax bill on April 1st of the prior calendar year. 
If the homestead is owned and occupied by claimants who 
are 
husband and wife, 
the rebate is allowed to both individuals 
jointly. 
3. 
Multiunit buildings. 
If the homestead of a claimant 1S 
located in a 
multiunit building, that claimant is allowed 
a 
property tax relief payment pursuant to this section only if 
property taxes are assessed and levied against the residential 
unit occupied by that claimant. 
§6229. 
Property tax relief for elderly households; income 
limitations 
A claimant re,QJ"esenting an elderly household qualifies for 
benefits subject to income limitations pursuant to this section. 
1. 
Si~lE!=lIl(mIber 
e1d~r 
l,."yz---""h",o!..>u!>Ss!:!e""h~o",l""d""",s ..... _---,,F~our,--2.s "'-i .... 
n""'g~l"'e'-=-'""m"'e"-'m'""b""e"'-"'-r 
elderly households, the benefit is calculated pursuant to this 
subsection. 
A. 
If household income equals $0 to $10,800, the benefit 
equals 100% of the benefit base up to a maximum of $400. 
B. 
If household 
income equals 
3110,801 
to 
~11,200, the 
b~nefit equals 
75~0 of the benefit base up to a maximum of 
~ 
c. 
If hQusehold 
incQme equals 
~11. 201 
to 
~11.600, the 
benefit 
~quals 
50~0 of the benefit base up to a maximum of 
~ 
D. 
If household 
income equals 
~11.601 to 
~11,900, the 
benefit equals 25% of the benefit base up to a maximum of 
~ 
2. 
Elderly households with 2 or more members. 
For elderly 
househQlds with 2 or more members, 
the benefit is calculated 
pursuant to this subsection. 
A. 
If household income equals $0 to $12,900, the benefit 
equals 100% of the benefit base up to a maximum of $400. 
B. 
If household 
income equals 
$12,901 to 
$13,700, 
the 
benefit equals 750'0 of the benefit base up to a maximum of 
~ 
c. 
If household 
income equals 
$13,701 
to $14,300, 
the 
benefit equals 50 90 of the benefit base up to a maximum of 
~ 
D. 
If household 
income equals 
$14,301 
to $14,800, 
the 
benefit equals 
25~0 of the benefit base up to a maximum of 
~ 
S6230. 
Property tax relief for none1derly households; income 
limitations 
A claimant representing a nonelderly household qualifies for 
benefits subject to income limitations pursuant to this section. 
1. 
Benefit 
calculation. 
For 
claimants 
representing 
a 
nonelderly household, the benefit is 
50~0 of that portion of the 
Page ll-LR2l94(1) 
benefit base that exceeds 
4°'1> but does not exceed 
8°"0 of income 
plus 100% of that portion of the benefit base that exceeds 8% of 
income to a maximum payment of $1,250. 
2. 
IDCome eligibility. 
A single-member household with a 
household income in excess of $29,900 and a household with 2 or 
more members with a household income in excess of $46,300 are not 
eligible for a benefit. 
3. 
Subsidized housi~92-~cial needs payment. 
A claim may 
not be granted under this section to claimants 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 
subsection does not apply to persons receiving social security 
disability or supplemental security income disability benefits. 
§6231. 
Elderly option 
If 
a 
claimant 
representing 
an 
elderly 
household 
would 
qualify for a larger benefit under section 6230 than the claimant 
would receive under section 6229, then that claimant may choose 
to receive the benefit calculated under section 6230. 
§6232. 
Annual adjustment 
Beginning 
April 
1, 
2005, 
and 
annually 
thereafter, 
the 
assessor 
shall 
determine 
the 
household 
income 
eligibility 
adjustment factor. That factor must be multiplied by the income 
limitations in section 6229 applicable for the year prior to that 
for which relief is requested. The result must be rounded to the 
nearest 
$100 
and 
applies 
to 
the 
year 
for 
which 
relief is 
requested corresponding to 
the year 
on which the 
annualized 
cost-of-living adjustments were based. Beginning April 1, 2005, 
the 
same 
procedure 
must 
be 
employed 
to 
adjust 
the 
income 
limitation in section 6230, subsection 2. 
§6233. 
Eligibility for multiple benefits 
An 
eligible claimant may 
receive 
a 
property tax relief 
payment under section 6228 and either section 6229 or 6230, but 
not both, if eligible pursuant to each section, but only to the 
extent that the property tax relief payment does not exceed the 
property taxes actually owed. 
§6234. 
Payments 
1. 
Generally. 
Annually, after approving the property tax 
relief payment 
applications, 
the 
assessor 
shall 
prepare 
and 
certify lists of persons entitled to 
a 
property tax relief 
payment pursuant to sections 6228, 
6229 or 6230, respectively, 
together with the respective amounts due each claimant, and shall 
forward these lists, on or before August 31st, 
to the State 
Controller. 
The Treasurer of State, upon direction of the State 
Controller, shall pay and distribute the amount of the property 
tax relief payment as approved by the assessor no later than 
September 30th of the same year. 
A claim of less than $10 may 
not be granted. 
A claimant who is eligible for more than one 
benefit under this chapter must be paid annually with one check. 
A claimant is entitled to a property tax relief payment under 
this chapter only if the claimant is not in arrears for property 
taxes owed on the homestead for which the claim is filed. 
Upon 
each 
check 
mailed 
to 
an 
applicant 
must 
appear 
the 
words: 
"Property tax relief provided by the Maine State Legislature." 
2. 
Audits by assessor; setoff. 
If, upon audit of any claim 
filed under this chapter, the assessor determines that a claim 
for 
a 
property 
tax 
relief 
payment 
has 
been 
incorrectly 
determined, the assessor shall redetermine the claim and notify 
the claimant in writing of such redetermination and the reasons 
for the redetermination. 
The 
redetermination is final unless 
appealed by the claimant pursuant to section 6236. 
The assessor 
may set off against the relief payment any other liabilities owed 
by the claimant pursuant to section 185. 
3. 
Payments made in error. 
If the assessor determines that 
a claim has been incorrectly calculated or paid in error, the 
amount paid may be recovered by assessment, and the assessment 
bears interest from the date of payment of the claim, until 
refunded or paid, at the rate provided by section 186. 
§6235. Denial of claim 
L 
Fraudulent claim. 
If it is determined that a claim is 
excessive and was filed with fraudulent intent, or the assessor 
finds that the claimant received title to the homestead primarily 
for the purpose of receiving benefits under this chapter, thg 
claim must be disallowed in full. 
If the claim has been paid, 
the amount paid must be recovered by assessment. 
The assessment 
must bear interest from the date of payment or credit of the 
claim, until refunded or paid, at the rate of 1% per month. The 
claimant in such case and any person who, with fraudulent intent, 
assisted in the preparation or filing of the excessive claim or 
supplied information upon which the excessive claim was prepared 
co~nit a Class E crime. 
2. 
Negligent claim. 
If it is determined that a claim is 
excessive and was negligently prepared, 
10% of the corrected 
claim must be disallowed. 
If the claim has been paid, the amount 
above the corrected claim amount and 10qb of the corrected claim 
amount must be recovered by assessment. 
The assessment must bear 
interest at 1% per month from the date of payment until refunded. 
Any claimant or spouse with an unpaid liability arising from 
this section is disqualified from benefits under this chapter. 
§6236. 
Apaals 
A claimant who is aggrieved by the disapproval of a claim or 
by the redetermination of a relief payment amount by the assessor 
may, within 30 days after notification of the decision indicating 
the reason for the disapproval or the redetermination, appeal 
that 
decision 
pursuant 
to 
section 
and 
the 
Maine 
Administrative 
Procedure 
Act. 
The 
appeal 
provided 
by 
this 
section is the exclusive remedy available to 
a 
claimant for 
review of a decision of the assessor with respect to the denial 
or redetermination of the amount of a property tax relief payment. 
§6237. Administration: ~lication form 
1. 
Program responsibility. 
The assessor shall administer 
the program pursuant to this chapter. 
2. 
Readability. 
The 
application form, 
instructions 
and 
subsequent claim forms, including the claim form that is part of 
the 
income 
tax 
return 
filed 
pursuant 
to 
Part 
8, 
used 
by 
applicants 
for 
assistance 
under 
this 
chapter 
must 
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 and must be able to be easily completed 
by a person with a 6th-grade education. 
3. 
Outreach plan. 
The assessor shall develop and implement 
a plan of outreach to ensure that all eligible households are 
made aware of assistance available under this chapter. 
4. 
Coordination required. 
The 
assessor shall 
seek 
the 
advice 
and cooperation of the 
Department of 
Human 
Services, 
Bureau of Elder and Adult Services, Bureau of Family Independence 
and 
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 property tax relief under this chapter 
and the outreach plan required pursuant to subsection 3. 
5. 
Rulemaiing. 
The assessor shall adopt rules to implement 
this chapter. 
Rules adopted pursuant to this chapter are routine 
technical rules pursuant to Title 5, chapter 375, subchapter 2-A. 
§6238. 
Protection from loss of benefits 
It is the intent of the Legislature that any claim paid 
under this chapter supplements any benefits paid under aid to the 
aged, blind and disabled. The Department of Human Services shall 
take 
any 
such 
action 
as 
may 
be 
necessary 
to 
ensure 
that 
recipients of aid to the aged, blind and disabled continue to 
receive as high a percentage of their current assistance as may 
be 
possible. 
To 
carry 
out 
this 
legislative directive, 
the 
Department of Human Services shall utilize all the state funds 
expected to be saved by a reduction in benefits of recipients of 
aid to the aged, blind and disabled resulting from this chapter 
to raise the standards of aid to the aged, blind and disabled at 
a total cost in state funds eguiyalent to the savings. 
Property tax relief payments received under this chapter may 
not 
be 
included 
as 
income 
for 
purposes 
of 
any 
state 
or 
municipally 
administered 
public 
benefit 
program 
but 
may 
be 
considered for purposes of determining eligibility for abatement 
under section 841, 
subsection 2. 
These property tax relief 
payments do not duplicate and may not reduce the amount of any 
individual's benefits under the Additional Support for People in 
Retraining 
and 
Employment 
Temporary 
Assistance 
for 
Needy 
Families program established in Title 22, section 3781-A. 
§6239. 
Local option property tax relief 
A municipality, by local option referendum, 
may create a 
program that provides property tax relief to Maine 
resident 
property owners who have resided in their homes for 20 years or 
longer and whose income level places their ability to stay in 
their 
homes 
in 
jeopardy. 
The 
municipality 
may 
freeze 
the 
property tax rate for eligible households or increase the tax 
liability by the rate .of inflation for eligible households. 
Upon 
the sale or transfer of the property, the municipality may recoup 
the difference in the amount actually paid by the property owner 
and the amount the property owner would have had to pay but for 
participation in the program. 
Sec. 8. 36 MRSA §6251, sub-§l. ~B. as repealed and replaced by 
PL 1993, c. 395, §31, is amended to read: 
B. 
The individual or, in the case of 2 or more individuals 
filing a claim jointly, all the individuals together have 
household 
income, 
as 
defined 
in 
section 
96Gl 
6222, 
subsection 1-
8, of less than $32,000 for the calendar year 
immediately preceding the calendar year in which the claim 
is filed. 
Sec. 9. 36 MRSA §6253, sub-§l, ~B, as enacted by PL 1989, c. 
534, Pt. C, §1, is amended to read: 
B. 
Recite 
facts 
establishing 
the 
eligibility 
for 
the 
deferral under the provisions of this chapter, 
including 
facts that establish that the household income as defined in 
section 9691 ~, subsection + ~, of the individual, or, in 
the case of 2 or more individuals claiming the deferral 
jointly, 
was 
less 
than 
$32,000 
for 
the 
calendar 
year 
immediately preceding the calendar year in which the claim 
is filed; and 
Sec. 10. Application. 
Those sections of this Act that repeal 
the Maine Revised Statutes, Title 36, chapter 105, subchapter 4-B 
and Title 36, chapter 907 and that enact Title 36, chapter 907-A 
apply to property taxes based on the status of property on or 
after April 1, 2004. 
Emergency clause. 
In view of the emergency cited in the 
preamble, this Act takes effect when approved. 
SUMMARY 
This bill creates the Maine Homestead Property Tax Relief 
Program by incorporating the current Maine Residents Property Tax 
Program, commonly referred to as the "circuit breaker" 
program, 
and 
the 
homestead property 
tax 
exemption 
program. 
The 
new 
program applies to tax years beginning April 1, 2004. 
Taxpayers 
will receive property tax relief payments beginning September 30, 
2004. 
Under the new program: 
1. 
Payments 
are 
provided 
directly 
to 
Maine 
resident 
property taxpayers; 
2. 
All Maine resident property owners, regardless of income 
level, receive a homestead property tax relief payment equivalent 
to a $14,000 property tax exemption based on local valuation and 
the local mil rate as long as the owner does not owe any back 
taxes on the claimed property: 
3. 
The maximum benefit payment for low-income nonelderly 
households is increased to $1,250 from the current $1,000: 
4. 
The percentage of rent considered payment for property 
taxes is increased to 20°'0 from the current 18% for nonelderly 
households; for elderly households, rent constituting payment for 
property taxes is set at 25%; 
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\ 
5. 
Low-income or elderly households may obtain both the 
homeowners benefit and the low-income or elderly benefit if those 
households qualify for both benefits; however, the total maximum 
benefit can not exceed the total amount of property taxes owed. 
The property tax exemption of $5,000 for veterans pursuant to the 
Maine Revised Statutes, Title 36, section 653 remains intact, and 
is in addition to the benefits under the Maine Homestead Property 
Tax Relief Program; 
6. 
The 
application 
deadlines 
and 
tax 
relief 
payment 
deadlines are the same for all benefits under the new program: 
all applications must be submitted by April 15th and all payments 
must be made by the State Treasurer no later than September 30th 
of each year; and 
7. 
The initial application for benefits under the program 
is 
on 
a 
form to be 
determined by 
the State Tax 
Assessor; 
subsequent claims for the same property by the same claimant may 
be done through the claimant's Maine income tax return. 
If the 
claimant does not file an 
income 
tax return or requests 
an 
extension, 
then 
the 
claim must 
be 
done 
through 
a 
separate 
application. 
The application and instructions for a property tax 
relief payment must be capable of being easily completed by a 
person with a 6th-grade education. 
The bill also authorizes a municipality to develop a local 
program in which the property taxes are frozen or increased only 
by the rate of inflation. 
Eligibility for the program would be 
limited to taxpayers who have occupied their homes for at least 
years and who are in danger of losing the property due to 
inability to pay the property taxes. 
The municipality would 
recoup the lost revenue when the homes are sold or transferred. 
The program requires approval at a local option referendum. 
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