Maine Legislature, Session 122, LD 0002
Committee Amendment CA_D_H1015 (House)

COMMITTEE 
AMENDMENT ,])" to H. P. 7, L. D. 
2, 
Proposing an Amendment to the Constitution of Maine 
Rate of Change in Taxable Value of Homestead Land" 
"RESOLUTION, 
To Limit the 
Amend 
the 
resolution 
by 
striking 
out 
the 
title 
and 
substituting the following: 
'RESOLUTION, Proposing an Amendment to the Constitution of Maine 
To 
Limit the Rate of Change 
in Taxable Value of Homestead 
Property' 
Further 
amend 
the 
resolution 
by 
striking 
out 
all 
of 
subsection 6 (page 1, lines 7 to 26 in L.D.) and inserting in its 
place the following: 
'6. 
Valuation of homestead property. 
Beginning with taxes 
based on the status of property on or after April 1, 2008, 
a 
municipali ty shall assess the taxable value of homestead land 
based on the base property value of the land. 
A municipality may 
assess the taxable value of other homestead real property based 
on the base property value of that property. 
For 
the 
purposes 
of 
this 
subsection, 
"homestead 
land" 
and 
"homestead real property" 
mean, 
as 
applicable, 
land or real 
property that is exclusively and continuously owned by one or 
more residents of the State while the land or real property 
remains the principal home of each owner. 
For the purposes of this subsection, "base property value" means 
the just value of the property on April 1, 2008 or on the April 
1st preceding the date on which the owner acquired the property, 
whichever is later, as adjusted under this subsection. 
Unless 
there is 
a 
change of ownership or 
a 
change of use of the 
Page l-LR0329(8) 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ~, to H. P. 7, L. n. 2 
property, 
the base property value on each April 1st may be 
adjusted only to reflect the just value of any improvements or 
degradations to the property since the last assessment and by the 
lower 
of 
the 
actual 
increase 
in 
just value 
and 
the 
same 
percentage as the percentage increase in the Consumer Price Index 
complied by the United States Department of Labor, 
Bureau of 
Labor Statistics since the last valuation of the property. 
When 
there is a change in ownership or use of the property, the base 
property value must be adjusted to the just value of the property 
on the April 1st preceding the change of ownership. 
Changes in ownership or use of the property must result in the 
imposition of a minimum penalty egual to the tax that would have 
been imposed over the 5 years preceding the change of ownership 
or use had the property not been subject to a limitation on 
taxable value under this subsection, less all taxes paid on the 
property over the preceding 5 years, and interest. 
The 
Legislature 
may 
enact 
legislation 
to 
provide 
for 
administration of this subsection.' 
Further amend the resolution in the 4th indented paragraph 
after the title in the 5th and 6th lines (page 1, lines 35 and 36 
in L.n.) by striking out the following: 
"statewide election, at 
a statewide election, on the Tuesday following the first Monday" 
and inserting in its place the following: 
'general election, at 
the next general election in the month' 
Further amend the 
question (page 1, lines 
place the following: 
resolution by striking out all of the 
to 44 in L. D.) and inserting in its 
'''Do you favor amending the Constitution of Maine to permit 
limiting 
the 
increase 
in 
taxable 
value 
of 
homestead 
property?" , 
SUMMARY 
This amendment proposes to amend the Constitution of Maine 
to cap 
homestead 
land valuation at the 
current just value, 
maintained by Maine courts to be market value, of the property. 
It permits municipalities to further cap the just value of other 
homestead real property, 
such as the 
house on the homestead 
land. 
It permits increases in capped valuation only to capture 
improvements 
or 
degradations 
to 
the 
property 
of 
inflation, 
whichever change in valuation is lower. 
Upon change in ownership 
or to 
a 
nonhomestead use, 
the property must be reassessed at 
current just value and a penalty must be assessed equal to the 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT~I to H.P. 7, L.D. 2 
property tax that would have been imposed over the preceding 5 
years minus property taxes paid over the period, plus interest. 
FISCAL .\OTE RE0URED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 04/04/06 ~ac 
LD2 
LR 0329(08) 
RESOLUTION, Proposing an Amendment to the Constitution of Maine To Limit the Rate of Change 
in Taxable Value of Homestead Land 
Referendum Costs 
Fiscal Note for Bill as Amended by Committee Amendment:!)" 
. 
Committee: Taxation 
Fiscal Note Required: Yes 
Majority Report 
Fiscal Note 
MonthlY ear 
Election Type 
Question 
Nov-06 
General 
Referendum 
Length 
Standard 
The Secretary of State's budget includes sufficient funds to accommodate one ballot of average length for the general 
election in November. If the number or size of the referendum questions increases the ballot length, an additional 
appropriation of $8,000 or more may be required.