An Act To Make Owners of Cooperative Housing Eligible for the Homestead Exemption (AFfER DEADLINE)
Maine Legislature, Session 122, LD 1552
Committee: Taxation
Sponsors: CROSBY, MAYO, ADAMS, AUSTIN, BABBIDGE, BARSTOW, BEAUDETTE, BERUBE, BISHOP, BLANCHARD, BLISS, BOWEN, BOWLES, BRAUTIGAM, BROWNE, BRYANT, BURNS, CAIN, CEBRA, CLARK, CLOUGH, COLLINS, CRAVEN, CROSTHW AITE, CUMMINGS, CURLEY, DA VIS, DRISCOLL, DUCHESNE, DUDLEY, DUNN, DUPLESSIE, EBERLE, EDER, FAIRCLOTH, FARRINGTON, FISCHER, FLETCHER, FLOOD, GOLDMAN, GROSE, HANLEY, HARLOW, HOGAN, HUTTON, JACOBSEN, JENNINGS, LERMAN, LINDELL, LUNDEEN, MAKAS, MARLEY, MARRACHE, MAZUREK, MILLER, MILLS, MOODY, MUSE, NORTON, O'BRIEN, PATRICK, PELLETIER-SIMPSON, PERCY, PERRY, PILON, PINGREE, PINKHAM, PLUMMER, RECTOR, RICHARDSON, ROBINSON, SAMPSON, SA VIELLO, SCHATZ, SMITH, TARDY, TUTTLE, VALENTINO, WEBSTER, WHEELER, WOODBURY, BARTLETT, BRENNAN, BROMLEY, COURTNEY, COWGER, DAMON, DIAMOND
Amends: 36 MRSA §681, 36 MRSA §683

Legislative Document 
No. 1552 
H.P.1093 
House of Representatives, April 6, 2005 
An Act To Make Owners of Cooperative Housing Eligible for the Homestead Exemption 
(AFfER DEADLINE) 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 205. 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative CROSBY of Topsham. 
'I7l~ 1?7.1l/oc~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Senator MAYO of Sagadahoc and Representatives: ADAMS of Portland, AUSTIN of 
Gray, BABBIDGE of Kennebunk, BARSTOW of Gorham, BEAUDETTE of Biddeford, BERUBE of 
Lisbon, BISHOP of Boothbay, BLANCHARD of Old Town, BLISS of South Portland, BOWEN of 
Rockport, BOWLES of Sanford, BRAUTIGAM of Falmouth, BROWNE of Vassalboro, BRYANT of 
Windham, BURNS of Berwick, CAIN of Orono, CEBRA of Naples, CLARK of Millinocket, 
CLOUGH of Scarborough, COLLINS of W ells, CRAVEN of Lewiston, CROSTHW AITE of 
Ellsworth, CUMMINGS of Portland, CURLEY of Scarborough, DA VIS of Falmouth, DRISCOLL of 
Westbrook, DUCHESNE of Hudson, DUDLEY of Portland, DUGA Y of Cherryfield, DUNN of 
Bangor, DUPLESSIE of Westbrook, EBERLE of South Portland, EDER of Portland, FAIRCLOTH of 
Bangor, FARRINGTON of Gorham, FISCHER of Presque Isle, FLETCHER of Winslow, FLOOD of 
Winthrop, GOLDMAN of Cape Elizabeth, GROSE of Woolwich, HANLEY of Gardiner, HARLOW of 
Portland, HOGAN of Old Orchard Beach, HUTTON of Bowdoinham, JACOBSEN of Waterboro, 
JENNINGS of Leeds, LERMAN of Augusta, LINDELL of Frankfort, LUNDEEN of Mars Hill, 
MAKAS of Lewiston, MARLEY of Portland, MARRACHE of Waterville, MAZUREK of Rockland, 
McKENNEY of Cumberland, MILLER of Somerville, MILLS of Farmington, MOODY of Manchester, 
MUSE of Fryeburg, NORTON of Bangor, O'BRIEN of Lewiston, PATRICK of Rumford, 
PELLETIER-SIMPSON of Auburn, PERCY of Phippsburg, PERRY of Calais, PILON of Saco, 
PINGREE of North Haven, PINKHAM of Lexington Township, PLUMMER of Windham, RECTOR 
of Thomaston, Speaker RICHARDSON of Brunswick, ROBINSON of Raymond, SAMPSON of 
Auburn, SA VIELLO of Wilton, SCHATZ of Blue Hill, SMITH of Monmouth, TARDY of Newport, 
TUTTLE of Sanford, VALENTINO of Saco, W ALCOTT of Lewiston, WEBSTER of Freeport, 
WHEELER of Kittery, WOODBURY of Yarmouth, Senators: BARTLETT of Cumberland, 
BRENNAN of Cumberland, BROMLEY of Cumberland, BRYANT of Oxford, COURTNEY of York, 
COWGER of Kennebec, DAMON of Hancock, DIAMOND of Cumberland, DOW of Lincoln, 
President EDMONDS of Cumberland, GAGNON of Kennebec, HASTINGS of Oxford, HOBBINS of 
York, MARTIN of Aroostook, MILLS of Somerset, MITCHELL of Kennebec, ROSEN of Hancock, 
SCHNEIDER of Penobscot, STRIMLING of Cumberland, WESTON of Waldo. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRSA §681, sub-§§I-A and I-B are enacted to read: 
I-A. 
Coo.perative housing corporation. 
"Cooperative housing 
corporation" means an entity 
residential 
real estate 
in 
entitle the shareholder to 
residential dwelling. 
orggnized for the purpose of owni~~ 
which 
residents 
own 
shares 
that 
inhabit a 
certain space within a 
I-B. 
Co~rative prQ~.xt,y-" 
"Coo~t..ive prope~' means 
the real property, including mobile and manufactured homes, owned 
by a cooperative housing corporation for the primary purpose of 
residential use. 
Sec. 2. 36 MRSA §681, sub-§2, as enacted by PL 1997, c. 643, 
Pt. HHH, §3 and affected by §10, is amended to read: 
2. 
Homestead. 
"Homestead" means any residential property.£. 
including cooperative proper.tL-
in this State assessed as real 
property owned by an applicant or held in a 
revocable living 
trust for the benefit of the applicant and occupied by the 
applicant as the applicant's permanent residence or owned by a 
cooperative housing corporation and occupied by an applicant who 
is a qualifying shareholder. 
A "homestead" does not include any 
real property used solely for commercial purposes. 
Sec.3. 36 MRSA §681, sub-§5 is enacted to read: 
5. 
Ou~ifying sharebo..l.der. 
"Qualifying shareholder" means 
a person who is a: 
A. 
Shareholder in a 
coqp..e..rative housing corporation that 
owns a homestead in this State: 
B. 
Shareholder 
for 
the 
preceding 
months 
in 
the 
cooperative housing corporation specified in paragraph A: and 
C. 
Permanent resident of this State. 
Sec. 4. 36 MRSA §683, sub-§5 is enacted to read: 
5. 
Determination of 
exe.mption 
for 
c~operative housing 
corporation. 
A cooperative h~Msing corpg_~n may apply for an 
exemption under this subchapter. 
The exemption is egual to the 
.amount specified in 
sub_secti~n 1 
multipli~d by the number of 
units 
in 
the 
cooperative 
pr-ru?erty 
occupied 
by 
gualifying 
.snareholders. 
A coopeUik.~~_ing corporation thaLreceives an 
exemption pursuant to this section shall apportion the property 
Page l-LR2205(1) 
tax reduction 
resultin~rom the exemption among the qualifying 
shareholders on per unit basis. 
Sec. 5. Application. 
This Act applies to property tax years 
beginning on or after April 1, 2005. 
SUMMARY 
This bill allows residents of a residential cooperative who 
are shareholders in that cooperative to participate in the Maine 
resident homestead property tax exemption program. 
The amount of 
the 
exemption 
is 
limited 
to 
the 
number 
of 
units 
in 
the 
cooperative occupied by persons who would otherwise qualify for 
the 
homestead property tax exemption if they 
owned property 
currently qualifying as a homestead.