An Act To Rebalance Maine's Tax Code
Maine Legislature, Session 122, LD 1595
House Amendment HA_A_H707 (House)
Amends: 36 MRSA §681, 36 MRSA §683

HOUSE AMENDMENT ,,4, to H.P. 1131, L.D. 1595, Bill, "An Act 
To Rebalance Maine's Tax Code" 
Amend the bill by inserting after Part M the following: 
'PARTN 
Sec. N-l. 36 MRSA §681, sub-§§l-A and I-B are enacted to read: 
1-A. 
Cooperative housing corporation. 
"Cooperative housing 
corporation" means an entity organized for the purpose of owning 
residential 
real 
estate 
in which 
residents 
own 
shares 
that 
entitle the shareholder to inhabit 
a 
certain space within 
a 
residential dwelling. 
1-B. 
Cooperative prQperty. 
"Cooperative property" 
means 
the real property, including mobile and manufactured homes,·owned 
by a cooperative housing corporation for the primary purpose of 
residential use. 
Sec. N-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" 
including cooperative property, 
property owned by an applicant 
trust for the benefit of the 
means any residential property.L 
in this State assessed as real 
or held in a 
applicant and 
revocable living 
occupied by the 
Page I-LR2080(5) 
HOUSE AMENDMENT 
~.co. 
HOUSE AMENDMENT ~ 
to H.P. 1131, L.D. 1595 
applicant as the applicant' s permanent residence or owned by a 
cooperative 
housing 
corporation 
and 
occupied 
as 
a 
permanent 
residence by a 
resident who 
is 
a qualifying shareholder. 
A 
"homestead" does not include any real property used solely for 
commercial purposes. 
Sec. N-3. 36 MRSA §681, sub-§5 is enacted to read: 
5. 
Qualifying shareholder. 
"Qualifying -shareholder" means 
a person who is a: 
A. 
Shareholder in a cooperative 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. N-4. 36 MRSA §683, sub-§5 is enacted to read: 
5. 
Determination 
of 
exemption 
for 
cooperative 
housing 
cORPOration. 
A cooperative housing corporation may apply for an 
exemption 
under 
this 
subchapter 
to 
be 
applied 
against 
the 
valuation - of property of the corporation that is occupied by 
qualifying shareholders. 
The application must include a list of 
all qualifying shareholders 
and must be 
updated annually to 
reflect changes in the ownership and residency of qualifying 
shareholders. 
The exemption is equal to the amount specified in 
subsection 1 multiplied by the number of units in the cooperative 
property 
occupied 
by qualifying 
shareholders. 
A cooperative 
housing corporation that receives an exemption pursuant to this 
section shall apportion the property tax reduction resulting from 
the exemption among the qualifying shareholders on a per unit 
basis. 
Any 
supplemental 
assessment 
resulting 
from 
disqualification for exemption must be applied in the Same manner 
against the gualifying shareholders for whom the disqualification 
applies. 
Sec. N-5. Application. 
This Act applies to property tax years 
beginning on or after April 1, 2006. 
Sec. 
N-6. 
Appropriations 
and 
allocations. 
appropriations and allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, 
DEPARTMENT OF 
The 
Homestead Property Tax Exemption Reimbursement 
0886 
following 
HOUSE AMENDMENT 
~ft.~ 
HOUSE AMENDMENT .. ;!J:. to H.P. 1131, L.D. 1595 
Initiative: 
Provides funds to reimburse municipalities for 
50o~ 
of 
the 
estimated property tax 
revenue 
loss 
associated with 
providing a homestead exemption for cooperative housing. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2005-06 
$0 
$0 
2006-07 
$290,000 
$290,000' 
Further amend the 
nonconsecutive 
Part 
consecutively. 
bill 
letter 
by relettering 
or 
section 
or renumbering any 
number 
to 
read 
SUMMARY 
This amendment 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 
s a homestead. 
SPONSORED BY: 
(Representa 
TOWN: 
Topsham 
CROSBY) 
FISCAL ;\01£ R£QURED 
(See attached) 
. HOUSE AMENDMENT 
• 
Approved: 06/15105 p/ac:.. 
. 
. 
.. , 
"150 
St~te Mandate 
New or Expanded Activity 
LD 1595 
LR2080(05) 
An Act To Rebalance Maine's Tax Code 
Fiscal Note for House Amendment if" 
Sponsor: Rep. Crosby 
Fiscal Note Required: Yes 
Fiscal Note 
Current Cost - State Mandate 
Unit Affected 
Costs 
Administrative costs associated with the calculation of the 
exemption amount for cooperative housing corporation property 
Municipality 
Insignificant 
Net Cost (Savings) 
General Fund 
Appropriations! Allocations 
General Fund 
Fiscal Detail and Notes 
2005-06 
$0 
$0 
2006-07 
. $290,000 
$290,000 
... 
Projections 
2007-08 
$290,000 
$290,000 
This amendment will increase the General Fund cost of the bill by $290,000 in fiscal year 2006-07. 
LR2080(5) - Fiscal Note - Pal!e 1 of 1 
Projections 
2008-09 
$290,000 
$290,000