An Act To Increase the State Share of Education Costs, Reduce Property Taxes and Reduce Government Spending at All Levels Amend the amendment by striking out all of Part F and inserting in its place the following: PARTF Sec. F-I. 36 MRS A §683, sub-§§l-B and l-e are enacted to read: _I-B. Exemption amount. Except for assessmen~_for special Denetits. the just value of ~QO of the homestead of a p~rmanent re5ident, 9f tbis Sta.te wbo bas owned a. homestegd in this State for the preceding 12 months is exempt from taxgtion. In determining the local assessed value of the exemption, the assessor shall mUltiply the amoynt of the exemption by the ratio of current jyst value upon which the assessment is bas~.s. fyrnished in the assessor I s annual return pursugnt to section 383. If the title to the homestead is held by the applicant jointly or in common with others, the exemption may not exceed $13,000 of the just value of the homestead. but may be gpportioned 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 separate accounts for each partigl interest in a homestead owned jointly or in common. Page l-LR0328(37) SENATE AMENDMENT
Maine Legislature, Session 122, LD 0001
Committee Amendment CA_A-SA_I_S10 (Senate)
Amends: 36 MRSA §683, 36 MRSA §685

SENATE AMENDMENT 1:[: to COMMITTEE AMENDMENT "A" to H.P. 6, 
L.D. 1, Bill, "An Act To Increase the State Share of Education 
Costs, Reduce Property Taxes and Reduce Government Spending at 
All Levels" 
Amend the 
amendment 
by striking out all of Part F 
and 
inserting in its place the following: 
'PARTF 
Sec. F-I. 36 MRS A §683, sub-§§l-B and l-e are enacted to read: 
_I-B. 
Exemption amount. 
Except for 
assessmen~_for special 
Denetits. 
the 
just value 
of 
~QO of 
the 
homestead of 
a 
p~rmanent re5ident, 9f tbis Sta.te wbo bas owned a. homestegd in 
this State for the preceding 12 months is exempt from taxgtion. 
In determining the local assessed value of the exemption, the 
assessor shall mUltiply the amoynt of the exemption by the ratio 
of current jyst value upon which the assessment is 
bas~.s. 
fyrnished in the assessor I s 
annual return pursugnt to section 
383. 
If the title to the homestead is held by the applicant 
jointly or in common with others, the exemption may not exceed 
$13,000 
of 
the 
just 
value 
of 
the 
homestead. 
but 
may 
be 
gpportioned 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 separate accounts for each partigl interest in a homestead 
owned jointly or in common. 
Page l-LR0328(37) 
SENATE AMENDMENT 
~ 
~ 
It;;} 
. , 
SENATE AMENDMENT ~, to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
I-C. 
Municipal 
optio~~. __ ~A~~m~u~n~i~c~i~p~a~l~i~t.y __ ~s~h~a~lwl~~c~h~o~o~s~e __ ~t~h~e 
homestead 
exemption 
provided 
in 
subsection 
or 
I-B. 
The 
unorganized territory has the homestead exemption provided in 
subsection I-B. 
Sec. F-2. 36 MRSA §683, sub-§§3 and 4, as enacted by PL 1997, 
c. 643, Pt. HHH, §3 and affected by §10, are amended to read: 
3. 
Effect on state valuation. 
~he For a municipality that 
chooses the homestead exemptio~videQ under subsection 1, the 
just value of homesteads exempt under this subchapter must be 
included in the annual determination of state valuation under 
sections 
and 
305. 
for 
a 
municipality that chooses 
the 
homestead exemption provided under subsection 1-B, 
0/0 
of the 
just yal\!oe of 
~.steads exe.mpL.J.wd~li subchapter must be 
incl\!oded in the annual determination of state valuation under 
sections 208 and 305. 
4. 
Property tax rate. 
~he for a municipality that chooses 
the homestead exemption provided under subsection 1, the value of 
homestead exemptions under this subchapter must be included in 
the total municipal valuation used to determine the municipal tax 
rate. 
For a municipality that chooses the homestead exemption 
provided under:. subsection l-B, 
Qb 
of the value of homestead 
exemptions \!onder this subchapter must be included in the total 
m\!onicipal 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. F-3. 36 MRSA §685, sub-§2, as enacted by PL 1997, c. 643, 
Pt. HHH, §3 and affected by §10, is amended to read: 
2. 
Entitlement to reimbursement by the State; ca1cu1ation. 
A municipality that has approved homestead exemptions under shis 
sQgehapse!O section 683, subsection 1 may recover from the State 
100% of the taxes lost by reason of the exemptions upon proof in 
a 
form satisfactory to the bureau. 
A municipality that has 
approved homesteag exemption9-»lliLer section 683, s\!obsection I-B 
may recover from the State 50% 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 
lQQ% 
50% 
of taxes lost by 
reason of the 
exemption. 
Sec. F-4. Application. 
This 
Part applies 
to property tax 
valuations determined on or after April 1, 2005.' 
Further amend 
any 
nonconsecutive 
consecutively. 
the amendment 
Part 
letter 
by relettering or renumbering 
or 
section 
number 
to 
read 
SENATE AMENDMENT 
~ • 
"-
~. 
. 
'" 
" 
SENATE AMENDMENT t~ to COMMITTEE AMENDMENT "A" to H.P. 6, L.D. 1 
SUMMARY 
This amendment allows a municipality to choose between the 
homestead exemption provided under current law and the changes to 
the laws governing the homestead exemption provided in Committee 
Amendment "A." 
SPONSORED BY: 
(Senator 
COUNTY: 
Penobscot 
FISCAL ~OTr ':~(JURED 
l~~.attached) 
SENATE AMENDMENT 
Approved: 01119/05 ;:tvac:.. 
LDI 
LR0328(37) 
An Act to Increase the State Share of Education Costs, Reduce Property Taxes and Reduce 
Government Spending at All Levels 
Fiscal Note for Senate Amendment ~to Committee Amendment "A" 
Sponsor: Sen. Plowman 
Fiscal Note Required: Yes 
Fiscal Note 
Potential current biennium savings - General Fund 
Fiscal Detail and Notes 
This amendment may decrease the amount of funding required to reimburse municipalities for 90% of the additional 
costs associated with changing the homestead exemption if a large number of municipalities elect to retain the current 
tiered exemption. The amount of savings can not be estimated at this time. 
LR0328(37) - Fiscal Note - Page 1 of 1