An Act To Provide Property Tax Relief to Maine Homeowners
Maine Legislature, Session 121, LD 1824
House Amendment HA_C_H963 (House)
Amends: 36 MRSA §6201, 36 MRSA §6203, 36 MRSA §6206, 36 MRSA §6207, 36 MRSA §6209, 20-A MRSA §15653, 36 MRSA §4365, 36 MRSA §4365-F, 36 MRSA §4366-D, 30-A MRSA §5721-A, 30-A MRSA §5823, 36 MRSA §683

12lST LEGISLATURE 
HOUSE AMENDMENT ,~, 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: 
I Be it enacted by the People of the State of Maine as follows: 
PART A 
Sec. A-I. 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: 
11-A. 
Rent 
constituting 
property 
taxes 
accrued 
for 
none1der1y househo1d. 
"Rent constituting property taxes accrued 
for 
nonelderly household" 
means 
18% 
20~ 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 which rent 
consti tutes the basis, in the succeeding calendar year, of a 
claim for relief under this chapter by the claimant. 
Sec. A-2. 36 MRSA §6203, as enacted by PL 1987, c. 516, §§3 
and 6, is repealed. 
Sec. A-3. 36 MRSA §§6203-A and 6203-B are enacted to read: 
§6203-A. 
P~nt of c1aim 
1. 
Pa~nt options_ 
Claimants 
under 
this 
chapter 
may 
select anyone of the following payment options for each claim. 
Page l-LR2l94(5) 
HOUSE AMENDMENT 
HOUSE AMENDMENT ,,~ to H.P. 1347, L.D. 1824 
A. 
The claimant may choose to have payment made directly to 
the claimant. 
B. 
Beginning with claims filed in 2006, the claimant may 
choose to have the payment applied against the claimant's 
individual income tax for the income tax year in which the 
claim is payable. 
C. 
Th~ claimant may choose to have payment made directly to 
the municipality where the claimant's homestead is located. 
2. 
P~nt procedure. 
Upon approval of claims by the State 
Tax Assessor, the assessor shall prepare and certify a list of 
individuals entitled to a 
claim under this chapter who 
have 
chosen a payment option authorized under subsection I, paragraph 
A or C, together with the respective amount attributable to each 
individual 
and 
indicating the 
payment 
option chosen 
by 
the 
claimant, and shall forward the list to the State Controller on 
or before September 30th, except that for calendar year 2004 the 
certification must 
be 
made 
on or before October 10th. 
The 
Treasurer of State, upon direction of the State Controller, shall 
pay and distribute the claims certified by the assessor to the 
appropriate payee on or 
b~fore October 20th. 
A claim of less 
than $10 
may not be granted. 
Claims not certified by the 
assessor 
by 
September 
30th 
may 
be 
certified 
as 
soon 
as 
practicable thereafter, but such claims need not be paid by the 
State ContrQller by October 2Qth. 
3. 
Review by State Tp Assessor: setoff regyired. 
The 
assessQr shall review every application filed pursuant to this 
chapter and may reject a claim if the assessor determines that no 
claim is due. 
If the assessor determines that a claim has been 
incorrectly determined. the assessor shall adjust the claim. 
The 
assessor shall notify the claimant in writing Qf any rejection or 
adjustment and the reasons therefor. 
The rejection or adjustment 
is final unless appealed by the claimant pursuant to section 
6229. 
The assessQr shall set Qff against the claim payment any 
other tax liability owed by the claimant pursuant tQ this Title. 
4. 
Payments made in error. If the assessQr determines that 
a claim has been incorrectly calculated or paid in error. the 
amount paid may be recovered by assessment pursuant to section 
141. and thS'! assessmS'!nt bears interS'!st from the date of payment 
of the claim. until refunded or paid. at the rate provided by 
section 186. 
§6203 B. 
Procedure for reimbursement 
At least monthly on or before the last day of the mQnth. the 
State Tax Assessor shall determine the benefit for each claimant 
HOUSE AMENDMENT 
~.~ 
• 
HOUSE AMENDMENT ,,6 to H.P. 1347, L.D. 1824 
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 the General Fund undedicated revenue within the individual 
income tax category. 
At lest monthly, payments of claims must be 
made as provided in section 6203-A. 
Sec. A-4. 36 MRS A §6204, as amended by PL 2001, c. 396. §42, 
is further amended to read: 
§6204. 
Filinq date 
A claim may not be paid unless the claim is filed with the 
Bureau of Revenue Services on or after August 1st and on or 
before the following December 31st. 
With regards to a year for 
which relief is reguested that begins after 2003, the period for 
filing a 
claim with the Bureau of Revenue Services begins on 
January 1st following the year for which relief is reguested and 
ends on the following June 30th. 
Sec. A-S. 36 MRSA §6206, sub-§§l and 2, as enacted by PL 1987, 
c. 516, §§3 and 6, are amended to read: 
1. 
elderly 
follows: 
Sinqle-member 
elderly 
households, 
the 
benefit 
If household income equals 
$0 to $9 r 8QQ $11,000 
$fh8Q.-~e-$hQQQ 
$11,001 to $11,400 
$~rQQ.-t.e-$+T6QQ 
$11,401 
to $11,800 
$1r6Q.-~e-$1T4QQ 
$11,801 to $12,100 
households. 
shall--&e 
For 
.is. 
single-member 
calculated 
as 
The benefit equals: 
100% of the benefit base up 
to a maximum of $400 
75% of the benefit base up 
to a maximum of $300 
50% of the benefit base up 
to a maximum of $200 
25% of the benefit base up 
to a maximum of $100 
2. 
Elderly households with 2 or more members. For elderly 
households with 2 
or more members, 
the benefit sha;!,;!,--&e is 
calculated as follows: 
If household income equals 
The benefit equals: 
HOUSE AMENDMENT 
~,~~. 
HOUSE AMENDMENT I~I to H.P. 1347, L.D. 1824 
$0 to $8TIOO $13,100 
$8rl01-te-$lheOO 
$13,101 to $13,900 
$8T§Ol-te-$8T8QO 
$13,901 to $14,500 
$8T801-te-$9TaOO 
$14,501 to $15,000 
100~ of the benefit base up 
to a maximum of $400 
75~ of the benefit base up 
to a maximum of $300 
50~ of the benefit base up 
to a maximum of $200 
25~ of the benefit base up 
to a maximum of $100 
Sec. A-6. 36 MRSA §6207, sub-§I, ,A-I, as amended by PL 1997, 
c. 557, Pt. A, §3 and affected by Pt. G, §1, is further amended 
to read: 
A-I. 
Fifty percent of that portion of the benefit base that 
exceeds 4" but does not exceed 8" of income plus 100°-& of 
that portion of the benefit base that exceeds 
8~ of income 
to a maximum payment of $1,000 for claims filed in 2004 and 
$1,500 for claims filed in subseguent years. 
Sec. A-7. 36 MRSA §6207, sub-§2, as amended by PL 1997, c. 
557, Pt. A, §3 and affected by Pt. G, §1, is further amended to 
read: 
2. 
Income 
eligibility. 
household incomes in excess of 
Single-member 
households 
with 
$aeT+OO $60,000 and households 
with 2 or more members with a household income in excess of 
$40T090 $80,000 are not eligible for a benefit. 
Sec. A·8. 36 MRSA §6209, sub-§I, as amended by PL 1989, c. 
508, §25, is further amended to read: 
1. 
Household limitation adjustment. 
Beginning March 1, 
1989 AUQi, and annually thereafter, the State Tax Assessor shall 
determine the household 
income eligibility adjustment factor. 
That factor ssa11 ~ 
be multiplied by the income limitations in 
section 6206T applicable for the year prior to that for which 
relief is requested. The result ssall IIWS..t be rounded to the 
nearest $100 and ssall-apply applies to the year for which relief 
is requested corresponding to the year on which the annualized 
cost of living adjustments were based. 
Beginning March 1, 1991 
2004, the same procedure ssall I!lY.§!. be employed to adjust the 
income limitation in section 6207, subsection 2. 
Sec. A-9. Application. 
Those sections of this Act that amend 
or enact the Maine Revised Statutes, Title 36, section 6203-A; 
section 
6204; 
and 
section 
6209, 
subsection 
apply 
to 
HOUSE AMENDMENT 
,~~ 
\\~ .. 
HOUSE AMENDMENT ,,~ to H.P. 1341, L.D. 1824 
applications filed on or after January 1, 
2005, exclusive of 
applications filed on extension from the prior filing period. 
Those sections of this Act that amend other provisions of the 
Maine 
Revised 
Statutes, 
Title 
36, 
chapter 
apply 
to 
applications filed on or after August 1, 2004. 
Sec. A-I0. 
Appropriations and allocations. 
appropriations and allocations are made. 
ADMINISTRATIVE AND FINANCIAL 
SERVICES, DEPARTMENT OF 
Bureau of Revenue Services 
The 
following 
Initiative: 
Provides funding for the additional administrative 
costs associated with the changes in the Maine Residents Property 
Tax Program in this Part. 
Genera1 Fund 
Positions - Legislative Count 
Personal Services 
All Other 
General Fund Total 
PARTB 
2003-04 
(0.000) 
$0 
$0 
2004-05 
(1.000) 
$48,611 
94,950 
$143,561 
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 local share. 
For fiscal year agg~-g4 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 
9T14 ~ 
mills times 
the unit's 
property fiscal capacity. 
In subsequent years the mill rate is 
1.51 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 $5,508 and 
the basic secondary per pupil operating rate for fiscal year 
2004-05 is $6,124. 
The foundation per pupil operating rate for 
fiscal year 2004-05 is $5,109. 
Sec. 
B-3. 
Notwithstanding 
Per 
pupil 
guarantee 
and 
statewide 
factor. 
any 
other 
provision 
of 
law, 
the 
per 
pupil 
HOUSE AMENDMENT 
,.,f.~.~ 
HOUSE AMENDMENT ·G .. to H.P. 1347, L.D. 1824 
guarantee 
for 
fiscal year 
2004-05 is $5,013. 
factor for fiscal year 2004-05 is 0.61410. 
The 
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 
Program Costs 
Early Childhood 
Special Education (Local) 
Special Education (Tuition and Board) 
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 
2004-05 
'l'OTAL 
$1,055,307,634 
1,367,317 
195,504,985 
19,395,944 
34,423,516 
76,147,845 
10,000,000 
336,839,607 
(7,141,000) 
329,698,607 
$1,385,006,241 
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, 8.71 mills; program millage limit, 1.36 
mills. 
HOUSE AMENDMENT 
· ~ 
~:f\'i.l. 
HOUSE AMENDMENT .. t .. to H.P. 1347, L.D. 1824 
Sec. B·6. Foundation reduction percentages. 
Notwithstanding any 
other 
prov1s1on 
of 
law, 
this 
section establishes 
reduction 
percentages as follows: program cost reduction percentage, 2.12%; 
transportation operating reduction percentage, 2.12%. 
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 
"l'O'rAL 
Operating and Program Cost 
$1,385,006,241 
Minimum State Subsidy 
2,276,772 
ADJUSTED FOUNDATION ALLOCATION 'l'O'.rAL $1, 387 , 283 , 013 
2004-05 
STATE 
$658,581,719 
2,276,772 
$660,858,491 
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'OTAL 
$73,787,290 
6,178,767 
3,055,623 
83,021,680 
(64,779) 
$82,956,901 
Sec. B·9. Debt service subsidy indexes. 
Notwithstanding 
any 
other prov1s1on of 
law, 
this section establishes mill rates 
pursuant to the Maine Revised Statutes, Title 20-A, chapter 606 
HOUSE AMENDMENT 
{~ 
fk~ , 
~V~ 
HOUSE AMENDMENT ,,~ to H.P. 1347, L.D. 1824 
as follows: 
operating cost millage, 8.71 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, 2.12%. 
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 ALLOCATIOR TOTAL 
$82,956,901 
COMBINED ADJUSTED FOONDATIOR ARD 
ADJUSTED DEBT SERVICE ALLOCATIORS 
"l'OTAL 
2004-05 
TOTAL 
$1,470,239,914 
2004-05 
STATE 
$59,216,433 
2004-05 
STATE 
$720,074,924 
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 Misce11aneous 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 second language 
2004-05 
TOrAL 
$489,904 
o 
o 
203,031 
11,231,613 
25,839,830 
2,129,818 
HOUSE AMENDMENT 
· :. 
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HOUSE AMENDMENT ,~, to H.P. 1347, L.D. 1824 
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 
Total Adjustments 
2,981,064 
166,392 
150,000 
75,000 
550,000 
125,000 
250,000 
1,112,000 
$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 
TOTAL 
FOOltDATIOH, DEBT SERVICE AND 
ADJUSTMENTS AND MISCELLANEOUS COSTS 
TOTAL 
2004-05 
".l'O'.rAL 
$45,303,652 
$1,515,543,566 
2004-05 
STATE 
$45,303,652 
$765,378,576 
Sec. B-14. Limit of State's obligation. 
If the State's continued 
obligation for any individual program contained in sections 4, 7, 
8, 11, 
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, 
and 13 of this Part may not lapse but must be 
carried forward for the same purposes. 
Sec. B-15. Authorization of payments. 
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 
HOUSE AMENDMENT 
tb~~O 
HOUSE AMENDMENT 'U' to H.P. 1347, L.D. 1824 
purpose aid for local schools for the fiscal year beginning July 
1, 2004 and ending June 30, 2005. 
Sec. B-16. Component funding. 
In accordance with the Maine 
Revised 
Statutes, 
Title 
20-A, 
section 
15607, 
subsection 
3, 
component funding wi thin general purpose aid for local schools 
for the fiscal year 2004-05 is as follows: 
Foundation (including Minimum State Subsidy) 
Debt Service 
Adjustments 
TOTAL 
2004-05 
$660,858,491 
59,216,433 
45,303,652 
$765,378,576 
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. 
EDUCATION, DEPARTMENT OF 
General Purpose Aid for Local Schools 
0308 
The 
following 
Initiative: 
Provides additional funds for the General Purpose 
Aid for Local Schools program. 
General Fund 
All Other 
PARTC 
2003-04 
$0 
2004-05 
$25,000,000 
Sec. C-l. 36 MRSA §4365, as amended by PL 2001, c. 439, Pt. 
SSSS, §1, and affected by §4, is further amended to read: 
§4365. 
Rate of tax 
A tax is imposed on all cigarettes imported into this State 
or held in this State by any person for sale at the rate of 41 
87.5 mills for each cigarette. 
Payment of the tax is evidenced 
by 
the 
affixing of 
stamps 
to 
the 
packages 
containing 
the 
cigarettes. 
If 
an 
individual 
purchases 
in 
anyone 
month 
HOUSE AMENDMENT 
~~ 
~.,~); . 
HOUSE AMENDMENT ,~, to H.P. 1347, L.O. 1824 
unstamped packages containing cigarettes in a quantity greater 
than 2 cartons from a person other than a licensed distributor or 
dealer, the tax may be assessed directly against the purchaser by 
the State Tax Assessor within 3 years from the date of the 
purchase. 
Sec. C-2. 36 MRSA §4365-F is enacted to read: 
§4365-F. 
Application of cigarette tax rate increase effective 
August 1. 2004 
The following provisions apply to cigarettes held for resale 
on August I. 2004. 
1. 
Stamped rate. 
Cigarettes stamped at the rate of 50 
mills per cigarette and held for resale after July 31. 2004 are 
subject to tax at the rate of 87.5 mills per cigarette. 
2. 
Liability. 
A person possessing cigarettes for resale is 
liable for the difference between the tax rate of 87.5 mills per 
cigarette and the tax rate of 50 mills per cigarette in effect 
before August 1. 
2004. 
Stamps indicating payment of the tax 
imposed by this section must be affixed to all packages of 
cigarettes held for resale as of August L 
2004. except that 
cigarettes held in vending machines as of that date do 
not 
require that stamp. 
3. 
Vending machines. 
Notwithstanding any other provision 
of this chapter. it is presumed that all cigarette vending 
machines are filled to capacity on August L 
2004 and that the 
tax imposed by this section must be reported on that basis. 
A 
credit against this inventory tax must be allowed for cigarettes 
stamped at the rate of 87.5 mills per cigarette placed in vending 
machines before Aygust I. 2004. 
4. 
P~nt. Payment of the tax imposed by this section 
myst 
be 
made 
to 
the 
State 
Tax 
Assessor 
in 
eqyal 
monthly 
installments by Jyne 3~. 2005, accompanied by forms prescribed by 
the assessor. 
Sec. C-3. 36 MRSA §4366-D, as enacted by PL 2001, c. 450, 
Pt. 0, §1, is repealed. 
PARTD 
Sec. D-l. 36 MRS A §4403, sub-§§l and 2, as amended by PL 1989, 
c. 588, Pt. 0, §4, are repealed and the following enacted in 
their place: 
Page ll-LR2l94(5) 
HOUSE AMENDMENT 
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\~ .. 
HOUSE AMENDMENT 'V' to H.P. l347, L.D. 1824 
1. 
Smokeless tobacco. 
A tax is imposed on all smokeless 
tobacco, including chewing tobacco and snuff, at the rate of 75% 
of the wholesale sales price. 
2. 
Other tobacco. 
A tax is imposed on cigars, pipe tobacco 
and other tobacco intended for smoking at the following rates: 
A. 
For cigars, the tax is 20% of the wholesale sales price: 
~ 
B. 
For pipe tobacco and other tobacco intended for smoking, 
the tax is 100% of the wholesale sales price. 
Sec. D-2. Application. That section of this Part that repeals 
and replaces the Maine Revised Statutes, Title 36, section 4403, 
subsections 1 and 2 applies to wholesale sales on or after August 
1, 2004. 
PARTE 
Sec. E-l. 30-A MRSA c. 3, sub-c. 3 is enacted to read: 
SUBCHAPTER 3 
COORTY APPROPRIATIClN LIMITATIClN 
§98l. 
County apprqpriation limitations 
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 1, 2005. 
1. 
Definitions. 
As 
used 
in this 
section, 
unless 
the 
context 
otherwise 
indicates. 
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" means the total amount 
of 
money 
raised 
and 
appropriated 
to 
pay 
for 
services, 
programs and public debt that is included in a 
county's 
annual budget but does not include any grant or subsidy that 
the county receives from the Federal Government. 
C. 
"Exceptional 
circumstances" 
means 
an 
unforeseen 
condition 
or 
conditions 
over 
which 
the 
county 
budget 
HOUSE AMENDMENT 
• 
~~ 
~. '.' 
,,,~ .. ~ 
HOUSE AMENDMENT "V to H.P. 1347, L.D. 1824 
authority has little or no control and does not mean new 
programs 
or 
program 
expansions 
that go 
beyond existing 
program criteria and operations. 
2. 
Appropriation limitation. 
The total county services 
appropriation for each fiscal year of a county may not exceed the 
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. 
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 
reg:uire 
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. 
Sec. E-2. 30-A MRSA §5721-A is enacted to read: 
§S721 A. 
Municipal appropriation limitations 
The 
following 
limitations 
apply 
to 
a 
municipality' s 
appropriations for fiscal years that begin on or after January 1, 
l.Q.Q..5...... 
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 
HOUSE AMENDMENT 
q~6 
~ tf• . 
":~t. 
,,~ 
HOUSE AMENDMENT ,~ to H.P. 1347, L.D. 1824 
body has little or no control and does not mean new programs 
or 
program 
expansions 
that 
go 
beyond 
existing 
program 
criteria and operations. 
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 municipal government and 
any grant or subsidy that the municipality receives from the 
Federal Government. 
2. 
Ap,propriation 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. 
3. 
E:z:cQPtional 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 4; 
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. 
Revenue-sharing deduction. 
If a municipality's spending 
exceeds the amount derived under subsections 
and 3 due to 
circumstances 
that 
are 
not 
exceptional 
as 
established 
in 
subsection 3, its share of distributions under section 5681, 
subsections 4-A and 4-B must be reduced in the following manner: 
Page l4-LR2l94(5) 
HOUSE AMENDMENT 
~~ 
~~. 
~" 
() 
llj 
HOUSE AMENDMENT .~. to H.P. 1347, L.D. 1824 
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. 
5. 
Procedures. 
The Department of Audit and the Treasurer 
of State shall establish procedures 
and may adopt rules to 
implement the requirements of this section. 
Rules adopted under 
this subsection are routine technical rules as defined in Title 
5, chapter 375, subchapter 2-A. 
The Department of Audit and the 
Treasurer of State may present legislation to the First Regular 
Session 
of 
the 
122nd 
Legislature 
by 
February 
1, 
2005 
if 
considered necessary to implement this section. 
Sec. E·3. 30·A MRSA §5823, sub-§3, 1JA, 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; allEl 
(4) 
All 
financial 
statements 
information required 
by governmental 
financial reporting standardsT~ 
(5) 
A statement of: 
and 
all 
other 
accounting 
and 
(a) 
Whether 
the municipality has 
exceeded 
the 
amount derived under section 5721-A, subsection 2 
due to circumstances that are not exceptional as 
described in 
section 
572l-A, 
subsection 
3, 
if 
applicable: and 
HOUSE AMENDMENT 
~~. 
~~I .. 't 
HOUSE AMENDMENT "v, to H.P. 1347, L.D. 1824 
(b) 
If the amount derived under section 5721-A, 
subsection 2 has been exceeded as descr ibed in 
division (a). a calculation of the amount by which 
the municipality has exceeded that amount. 
Sec. E-4. 30-A MRSA §5823, sub-§3, ,B, 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; ass 
(2) 
A certified copy of 
prescribed 
by 
the 
State 
audits ... ; and 
the audit procedural form 
Auditor 
for 
governmental 
(3) 
A copy of the municipality' s or Quasi-municipal 
corporation's approved official budget for 
the year 
audited. 
PARTF 
Sec. F-I. 36 MRSA §683, sub-§l, as repealed and replaced by PL 
2003, c. 20, Pt. BB, §l and affected by §3, is repealed. 
Sec. F-2. 36 MRSA §683, sub-§l-A, as enacted by PL 2003, c. 
20, Pt. BB, §2 and affected by §3, is repealed. 
Sec. F-3. 36 MRSA §683, sub-§§l-B and l-e are enacted to read: 
B. 
Exemption 
amount: 
prqperty 
tax 
year 
2004. 
For 
property tax year 2004. 
the estate up to the just value of 
$10.000 for persons who are 65 years of age or older and $7,000 
for all other persons 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 $10.000 of the just value of 
the homestead for persons who are 65 years of age or older and 
$7.000 of the just value of the homestead for all other persons 
HOUSE AMENDMENT 
~~.ia 
HOUSE AMENDMENT .. CY to H.P. 1347, L.D. 1824 
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 a separate account for each 
partial interest in a homestead owned jointly or in common. 
The 
exemption provided under this subsection is limited to claimants 
whose Maine adjusted gross income, as defined in section 5102, 
subsection l-C, is $125,000 or less. 
I-C. 
Exegption amount: prQperty tax year 2005 and later. 
For property tax years beginning in 2005 and later, the estate up 
to the just value of $15,000 for persons who are 65 years of age 
or older and $10,000 for all other persons 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 I s jil.nnual return pursuant to section 383. 
If the title 
to a homestead is held by the iilPplicant jointly or in common with 
others, the exemption may not exceed $10,000 of the just value of 
the homestead for persons who are 65 years of age or older and 
$7,000 of the just value of the homestejil.d for all other persons 
but may 
be 
apportioned 
among 
the 
owners 
who 
reside on the 
property 
to 
the 
extent 
of 
their 
respective 
interests. 
A 
municipjil.lity 
responsible 
for 
administering 
the 
homestead 
exemption has no obligation to create a separate account for each 
partial interest in a homestead owned jointly or in common. 
The 
exemption provided under this subsection is limited to claimants 
whose Maine adjusted gross income, as defined in section 5102, 
subsection 1-C, is $125,000 or less. 
Sec. F-4. Application. 
This Part applies to property tax 
valuations based on the status of property on or after April 1, 
2004. 
Sec. 
F -5. 
Appropriations 
and allocations. 
appropriations and allocations are made. 
ADMINISTRATIVE AND FINANCIAL 
SERVICES, DEPARTMENT OF 
Homestead Property Tax Exemption Reimbursement 
The 
following 
Initiative: 
Provides funding for the additional costs associated 
with the changes to the homestead property tax exemption in this 
Part. 
Page l7-LR2194(5) 
HOUSE AMENDMENT 
~ 
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~~. \i. 
,(;l,,1W 
HOUSE AMENDMENT "V to H.P. 1347, L.D. 1824 
General Fund 
All Other 
General Fund Total 
2003-04 
$0 
$0 
Homestead Property Tax Exemption - Mandate Reimbursement 
2004-05 
$6,174,798 
$6,174,798 
Initiative: 
Provides funding for the estimated additional local 
costs to implement the changes in the homestead property tax 
exemption in this Part. 
General Fund 
All Other 
General Fund Total 
ADMINISTRATIVE AND FINANCIAL 
SERVICES, DEPARTMENT OF 
DEPARTMENT 'lOrALS 
GENERAL FORD 
DEPAJr.J:MENT 'lOrAL - ALL FUNDS 
2003-04 
$0 
$0 
2003-04 
$0 
$0 
2004-05 
$645,800 
$645,800 
2004-05 
$6,820,598 
$6,820,598 
Sec. F-6. 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. ' 
SUMMARY 
This amendment provides comprehensive property tax relief 
through the following measures. 
Part A expands the Maine Residents Property Tax Program by 
expanding the income eligibility, increasing the maximum benefit 
to $1,500 beginning in 2005 and increasing the percentage of 
income constituting property taxes for nonelderly households from 
18'lt. to 20'lt.. 
Part A also adds an appropriations and allocations 
section. 
Part B provides an appropriation to general purpose aid for 
local schools of $25,000,000 in fiscal year 2004-05 and makes 
adjustments to school funding factors to account for the increase. 
Part C increases the cigarette tax by 75¢ per pack of 20 
cigarettes. 
HOUSE AMENDMENT 
HOUSE AMENDl'-,ENT "~to H.P. 1347, L.D. 1824 
Part D increases the tax on smokeless tobacco from 62°-1> to 
75% of the wholesale price, the tax on cigars from 16% to 20% and 
the tax on other smoking tobacco from 16% to 100%. 
Part 
E 
establishes 
limitations 
on 
county 
and 
municipal 
spending. 
Part F increases the homestead property tax exemption to 
$10,000 for homeowners 65 years of age and older and $7,000 for 
all other homeowners in 2004 and $15,000 for homeowners 65 years 
of age or older and $10,000 for all other homeowners in 2005. 
The exemption is limited to claimants with Maine adjusted gross 
income of $125,000 or less. 
Part F also adds an appropriations 
and allocations section. 
FISCAL NOTE REQillRED 
(See attached) 
/ .... ) I ,r 17 
t . 
\. 
~I· 
( 
~ 
/ ... c.t..--! 
.. ~ 
,~ 
SPONSORED BY: 
~c:" 1,/1 I C.,! ~ .." .. / 
(Speaker COLWELL) 
i 
TOWN: 
Gardiner 
HOUSE AMENDMENT 
Approved: 04128/04 ~ae. 
Office of Fiscal and Program Review 
LD 1824 
An Act To Provide Property Tax Relief to Maine Homeowners 
Net Cost (Savings) 
General Fund 
Appropriationsl Allocations 
General Fund 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
General Fund Appropriations 
Part A - Administrative costs - Revenue Services 
Part B - General Purpose Aid for Local Schools 
Part F - Homestead Exemption Costs 
Part F - Homestead State Mandate Costs 
Total General Fund Appropriations 
LR2194(OS) 
Fiscal Note for House Amendment" " 
Sponsor: Speaker Colwell 
Fiscal Note Required: Yes 
Fiscal Note 
Projections 
2003-04 
2004-05 
2005-06 
$0 
($8,873,729) 
($3,534,276) 
$0 
$31,964,165 
$30,770,185 
$0 
$40,837,894 
$34,304,461 
$0 
($596,747) 
($1,222,716) 
Projections 
2003-04 
2004-05 
2005-06 
$143,567 
$160,852 
$25,000,000 
$0 
$6,174,798 
$29,963,533 
$645,800 
$645,800 
$0 
$31,964,165 
$30,770,185 
LR2194(5) - Fiscal Note - Page 1 of 2 
Projections 
2006-07 
($597,450) 
$31,727,66:-
$32,325,119 
($1,316,471) 
Projections 
2006-07 
$155,277 
$0 
$30,926,592 
$645,800 
$31,727,669 
• 
2003-04 
2004-05 
2005-06 
2006-07 
General Fund Revenue 
Part A - Maine Residents Property Tax Program 
($11,750,532) 
($22,880,436) 
($24,596,469) 
Part C - Cigarette Tax Increase - Cigarette Tax 
$50,869,000 
$55,400,000 
$55,100,000 
Part C - Cigarette Tax Increase - Sales Tax 
$714,839 
$782,275 
$797,643 
Part D - Tobacco Products Tax Inc. - Tobacco Products Tax 
$1,073,048 
$1,195,516 
$1,225,404 
Part D - Tobacco Products Tax Inc. - Sales Tax 
$46,843 
$56,667 
$58,084 
Part F - Homestead impact on individual income tax 
($115,304) 
($249,561) 
($259,543) 
Total General Fund Revenue 
$0 
$40,837,894 
$34,304,461 
$32,325,119 
Revenue - Local Government FundlDisproportionate Tax Burden Fund 
Part A - Maine Residents Property Tax Program 
($631,483) 
($1,255,045) 
($1,349,173) 
Part C - Cigarette Tax Increase - Sales Tax 
$38,416 
$42,910 
$43,753 
Part D - Tobacco Products Tax Inc. - Sales Tax 
$2,517 
$3,108 
$3,186 
Part F - Homestead impact on individual income tax 
($6,197) 
($13,689) 
($14,237) 
Net Increase (Decrease) 
$0 
($596,747) 
($1,222,716) 
($1,316,471) 
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". 
This bill 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 because that deappropriation is included in LD 1919. 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 Local Government FundlDisproportionate 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 
appropropriated. If the amounts in LD 1919 are changed, the amounts included in this bill and the statutory and other 
language establishing the distribution will need to be revised accordingly. 
LR2194(5) - Fiscal Note - Page 2 of 2