An Act To Impose a Real Estate Transfer Tax Based on the Value of the Property (AFfER DEADLINE)
Maine Legislature, Session 122, LD 1634
Committee: Taxation
Sponsors: KOFFMAN, PERRY, CUMMINGS, LERMAN, RICHARDSON, SMITH, WOODBURY
Amends: 36 MRSA §4641-A

Legislative Document 
No. 1634 
H.P.1152 
House of Representatives, May 3,2005 
An Act To Impose a Real Estate Transfer Tax Based on the Value of 
the Property 
(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 KOFFMAN of Bar Harbor. 
Cosponsored by Senator PERRY of Penobscot and 
/J'l~ 1/1. 7I/d£~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: CUMMINGS of Portland, LERMAN of Augusta, Speaker RICHARDSON of 
Brunswick, SMITH of Monmouth, WOODBURY of Yarmouth. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRSA §4641-A, sub-§l, as enacted by PL 2001, c. 
559, Pt. I, §3 and affected by §15, is repealed. 
Sec. 2. 36 MRSA §4641-A, sub-§l-A is enacted to read: 
I-A. 
Deeds~~ax is 
i!TI~d on each deed by which any 
real property in this State is transferr~ 
A. 
The rate of 
tg~-----.impos~~on the grant_ee is $2 for each 
$1, 000 or fractional part of $1. 000 of the value of the 
property transferred. 
B. 
The rate of tax imposed on the grantor is as set out in 
this paragraph. 
(1) 
For property valued at less than $300,000, the tax 
is $2 for each $1,000 or fractional part of $I, 000 of 
the value of the property transferred. 
(2) 
For property valued at $300,000 or more but less 
than 
$400,000, 
the 
tax 
is 
$3 
for 
each 
$1,000 
or 
fractional part of $1,000 of the value of the property 
transferred. 
(3) 
For prQperty valued at $400,000 or more but less 
than 
$500,000, 
the 
t9~s $4 
for 
each 
$1,000 
or 
fractional part of $1,000 of the value of the property 
transferred. 
(4) 
For property valued at $500,000 or more but less 
than 
$600,000, 
the 
tax 
is 
$5 
for 
each 
$1,000 
or 
fractional part of $1,000 of the value of the property 
transferred. 
(5) 
For property valued at $600,000 or more but less 
than 
$700,000, 
the 
tax 
is 
$6 
for 
each 
$1,000 
or 
fractional part of $1,000 of the value of the property 
transferred. 
(6) 
For property valued at $700,000 or more but less 
than 
$800,000, 
the 
tax 
is 
$7 
for 
each 
$1,000 
or 
fractional part of $1,000 of the value of the property 
transferred. 
(7) 
For property valued at $800,000 or more but less 
than 
$900,000, 
the 
tax 
is 
$8 
for 
each 
$1,000 
or 
fractional part of $1,000 of the value of the property 
trgnsferred. 
(8) 
For property valu~_.t2.PO, 000 or more but less 
than 
$1~Q,-Q.Q_Q.L..-t..lle_tIDL.j,JL_~9 for 
each $1,000 or 
fractional part of $1,000 of the value of the property 
transferred. 
(9) 
For PLQP_eJ'.J;;y va;}.ue!LAUiLQOO--LOOO or more, the tax 
is 1% of the value of the property transferred. 
Sec. 3. 36 MRS A §4641-B, sub-§4, as amended by PL 2005, c. 12, 
Pt. H, §1, is further amended to read: 
4. 
Distribution of State's share of proceeds. 
The State 
Tax Assessor shall pay all net receipts received pursuant to this 
section to the Treasurer of State, and shall at the same time 
provide the Treasurer of State wi th documentation showing the 
amount 
of 
revenues 
derived 
from 
the 
tax 
imposed 
by section 
4641-A, subsection 1 I-A and the amount of revenues derived from 
the tax imposed by section 4641-A, subsection 2. 
The Treasurer 
of State shall credit 
1,L~-9f the revenues derived from the tax 
imposed by section 4641-A, subsection 1 I-A to the GeReFal-F\iRe. 
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MaiRe-~~~~~-A\itR9FitYT-~~~-~~~-e.e~9sit-~~-~-iR 
tae-~-i~-Gppo-r=-t-tHl-~ie-s--'9F-Ma-i£~-F-und--eFeatee.--i.fl---'l!-~1e--aQ-AT 
seeti9R-~~,-e*€ep~-~~-~£--~~&~al-~--~QQ~-Q4r-~-i~--yeaF 
dQG4-G§T-~~~€~~-~--~~~&-aRe.-~~~€~~-~--~~~r-$1T9GGTGGG 
9f-~Re-~ema~£~£~-~~~-~-~~~~~~~~-&FaR&~FFeG-t9-tRe 
GeReFal--F-und--~e~e~e--aRy-~~-aFe-~-~e--&ae-~~-State 
W9~siR~-A~~R9Fity so-called circuit breaker reserve established, 
illg.intained and administered by the State Controller from General 
Fund 
undedicated 
revenue 
within 
the 
individual 
income 
tax 
category. 
If the tax collected is not paid over by the 10th day 
of the month, the Treasurer of State may impose interest pursuant 
to section 186. 
The Treasurer of State shall credit to the 
General Fund all of the revenues derived from the tax imposed by 
section 4641-A, subsection 2. 
SUMMARY 
This bill changes the rate of the real estate transfer tax 
imposed on the buyer and seller of real property and the manner 
of imposition. 
The buyer of property is charged a flat tax of $2 
per $1,000 of value of the property being purchased. 
The seller 
of the property is charged a tax rate dependent on the value of 
the property being sold, starting at $2 per $1,000 of value of 
the property for property valued at less than $300,000, increased 
for every $100,000 in property value by $1 per $1,000 of the 
val ue of the property being sold. 
A maximum tax rate of 1% of 
the value of the property being sold is reached for property 
valued at $1,000,000 or more. 
The 
revenue 
from 
the 
tax is credited to 
the 
so-called 
circuit breaker reserve to fund the Maine Residents Property Tax 
Program 
except 
for 
10%, 
which 
is 
retained 
by 
the 
county 
collecting the tax. 
•