An Act To Repeal the Homestead Property Tax Exemption and Redirect Property Tax Relief Funds to the Maine Residents Property Tax Program
Maine Legislature, Session 122, LD 1066
Committee: Taxation
Sponsors: TURNER
Amends: 20-A MRSA §1310, 20-A MRSA §1703, 36 MRSA §383, 36 MRSA §507, 36 MRSA §6207

Legislative Document 
No. 1066 
S.P.383 
In Senate, March 1, 2005 
An Act To Repeal the Homestead Property Tax Exemption and 
Redirect Property Tax Relief Funds to the Maine Residents 
Property Tax Program 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Senator TURNER of Cumberland. 
Printed on recycled paper 
JOY J. O'BRIEN 
Secretary of the Senate 
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Sec. 1. 20-A MRSA §1310, sub-§6, as repealed and replaced by 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, 
seeE~eBs section 578 aBe 
be paid to the district until the amount determined by tbe 
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. 2. 20-A MRSA §1703. sub-§6, as repealed and replaced by 
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 wi thin 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 
Page I-LR0247 (1) 
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, seetieHs section 578 aHa 
e8§ be paid to the district until the amount determined by the 
court 
is 
satisfied. 
The 
court 
shall 
promptly 
notify 
the 
R 
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. 36 MRSA §383, sub-§4, ~~A and B, as enacted by PL 2001, 
c. 32, §1, are amended to read: 
A. 
Maine Tree Growth Tax Law, section 578; and 
B. 
Veterans' property tax exemptions, section 653t-aHa~ 
Sec. 4. 36 MRSA §383. sub-§4, ~c. as enacted by PL 2001, c. 
32, §1, is repealed. 
Sec. 5. 36 MRSA §507. first~, as amended by PL 1997, c. 643, 
Pt. HHH, §2 and affected by §10, is further amended to read: 
When 
a 
municipality issues 
a 
property tax bill to each 
taxpayer, each bill must contain a statement or calculation that 
:14 
demonstrates the amount or percentage by which the taxpayer's tax 
has been reduced by the distribution of state-municipal revenue 
sharingT--&t~~-~~~~-feF--~he-~~-~~~4e£~--Remesteaa 
FFeFe~ty-taH-e*emFtieH and state aid for education. 
The property 
tax bill must contain a 
statement of the assessed value of a 
homesteadT-~~~~-afteF-~~~~~~~-ef-~~bG&-resieeHt 
'+0 
Remesteae-FFeFeF-t.y--t.aH--eH·effip-tA .. ~...,--an4--t-he-~-%f.-t,He-eHempt=ieB 
aFF±iee-~~~~-hemesteaa. 
The State Tax Assessor shall annually 
{2 
provide each municipality with the 
amount 
of 
state-municipal 
revenue 
sharing 
and 
state 
aid 
for 
education 
subject 
to 
{4 
identification under this section. 
Sec. 6. 36 MRSA c.105, sub-c. 4-B, as amended, is repealed. 
4e 
Sec. 7. 36 MRSA §6207. sub-§1. ~A-1, as amended by PL 2005, c. 
2, Pt. E, §4 and affected by Pt. E, §§7 and 8, is further amended 
')0 
to read: 
A-I. 
Fifty percent of that portion of the benefit base that 
exceeds -4% 3% but does not exceed 8% 6% of income plus 100% 
of that portion of the benefit base that exceeds 8% 
6"'0 of 
income to a maximum payment of $~TGGG $3,000. 
Sec. 8. Application. 
This Act applies to property tax years 
beginning on or after April 1, 2005. 
SUMMARY 
This bill does the following: 
1. 
It repeals the Maine resident homestead property tax 
exemption and instead expands the Maine Residents Property Tax 
Program, commonly known as the "circuit breaker" program; and 
2. 
It expands the circuit breaker program by reducing the 
income tax thresholds from 4% and 8% to 3% and 6%, respectively, 
and by increasing the maximum benefit payment 
from $2,000 to 
$3,000.