An Act Provide
Maine Legislature, Session 122, LD 1691
House Amendment HA_F_H705 (House)
Amends: 36 MRSA §683

it· 
HOUSE AMENDMENT "F· to H.P. 1199, L.D. 1691, Bill, 
To 
Eliminate 
Pension 
Cost 
Reduction 
Bonding 
and 
Replacement Budgeting Measures" 
"An Act 
Provide 
Amend the bill by inserting after Part KKK the following: 
'PARTLLL 
Sec. LLL-i. 36 MRSA §683, sub-§§3 and 4, as amended by PL 
2005, c. 2, Pt. F, §3 and affected by §5, are further amended to 
read: 
3. 
Effect on state valuation. 
~:i:fty--pe-~t;.--E>-f--t:::ae The 
just value of homesteads exempt under this subchapter must be 
included in the annual determination of state valuation under 
sections 208 and 305. 
4. 
Property tax: rate. 
~:i:f?t::y--pe-:r-€-effi:--Q-:f.-t:ae The value of 
homestead exemptions under this subchapter must be included in 
the total municipal valuation used to determine the municipal tax 
rate. 
The municipal 
tax rate 
as 
finally determined may 
be 
applied to only the taxable portion of each homestead qualified 
for that tax year. 
Sec. LLL-2. 36 MRS A §685, sub-§2, as amended by PL 2005, c. 
2, Pt. F, §4 and affected by §5, is further amended to read: 
2. 
Entitlement to reimbursement by State; calculation. 
A 
municipality that has approved homestead exemptions under this 
subchapter may recover from the State §G% 100% of the taxes lost 
by reason of the exemptions upon proof in a form satisfactory to 
the bureau. 
The bureau shall reimburse the Unorganized Territory 
Education and Services Fund for §G% 100% of taxes lost by reason 
of the exemption. 
Page l-LR2419(14) 
HOUSE AMENDMENT 
" 
~ 
HOUSE AMENDMENT .. po, to H.P. 1199, L.D. 1691 
Sec. LLL·4. Transfer of funds. 
Notwithstanding 
any 
other 
provision of law, the State Controller shall transfer $8,500,000 
no later than June 30, 2006 from the Maine Clean Election Fund to 
the unappropriated surplus of the General Fund. 
Sec. 
LLL·5. 
Retroactive 
application. 
This 
Part 
applies 
retroactively to property tax valuations determined on or after 
April 1, 2005. 
Sec. LLL·6. 
Appropriations and allocations. 
appropriations and allocations are made. 
ADMIBISTRATIVE AND FINANCIAL SERVICES, 
DEPARTMENT OF 
The 
following 
Homestead Property Tax Exemption -
Reimbursement 
0886 
Initiative: 
Increases the reimbursement to municipalities from 
50% to 100% of the increase in the homestead exemption to $13,000. 
GENERAL FOND 
All Other 
GENERAL FUND TOTAL 
2005-06 
$35,438,172 
$35,438,172 
2006-01 
$36,267,826 
$36,267,826 
Homestead Property Tax Exemption - Mandate Reimbursement 
0881 
Ini tiati ve: 
Provides funds to reimburse municipalities for the 
additional costs of applying the change retroactively to property 
tax valuations made on April 1, 2005. 
GENERAL FOND 
20C5-06 
2006-01 
All Other 
$400,000 
$0 
GENERAL FUND TOTAL 
$400,000 
$0 
ADMDiISTRATIVE AND FINANCIAL SERVICES, 
DEPARTMENT OF 
DEPARTMENT roTALS 
2005-06 
2006-01 
GENERAL FOND 
$35,838,112 
$36,261,826 
DEPARTMENT TOTAL -
ALL FONDS 
$35,838,112 
$36,261,826' 
Further amend the 
nonconsecutive 
Part 
consecutively. 
HOUSE 
bill by relettering 
letter 
or 
section 
or renumbering any 
number 
to 
read 
AMENDMENT 
Co' 
~. 
~:., 
« 
HOUSE AMENDMENT "p. to H.P. 1199, L.D. 1691 
SUMMARY 
Legislative Document 1, "An Act To Increase the State Share 
of Education Costs, Reduce Property Taxes and Reduce Government 
Spending at All Levels," which was signed into law as Public Law 
2005, chapter 2, increased the Maine resident homestead property 
tax exemption amount to $13,000 per permanent homestead but only 
provided 50% reimbursement to municipalities for the decreased 
property tax revenue. 
This amendment increases the reimbursement to municipalities 
to 
100% and funds 
the increase in state reimbursement by 
a 
transfer of funds that are projected to be available in the Maine 
Clean Election Fund. 
FISCAL NOTE REQUIRED 
SPONSORED BY: 
(Representative 
TOWN: 
Arundel 
HOUSE 
(See attached) 
( 
AMENDMENT 
Approved: 06/15/05 ~ac:.. 
LD 1691 
LR2419(14) 
An Act To Eliminate Pension Cost Reduction Bonding and Provide Replacement Budgeting Measures 
Net Cost (Savings) 
General Fund 
Appropriations 
General Fund 
Transfers 
General Fund 
Fiscal Detail and Notes 
Fiscal Note for House Amendment "f" 
Sponsor: Rep. Daigle 
Fiscal Note Required: Yes 
Fiscal Note 
2005-06 
2006-07 
$27,338,172 
$36,267,826 
$35,838,172 
$36,267,826 
$8,500,000 
$0 
This amendment will increase the General Fund cost of the bill by $27,338,172 in fiscal year 2005-06 and 
$36,267,826 in fiscal year 2006-07. Based on the estimated year-end balances, this amendment does not maintain a 
balanced budget for the 2006-2007 biennium. 
LR2419(14) - Fiscal Note - Page 1 of 1