An Act To Fully Fund the Homestead Exemption Amend the amendment by inserting after the title the following: Amend the bill by striking out the title and substituting the following: An Act To Increase the Funding of the Homestead Exemption Further amend the amendment in the first paragraph after the title in the first line (page 1, line in amendment) by striking out the following: Amend" and inserting in its place the following: 'Further amend Further amend the amendment by striking out all of Part A and inserting in its place the following: PART A Sec. A-I. 36 MRSA §683, sub-§I, as repealed and replaced by PL 2005, c. 2, Pt. F, §l and affected by §5, is amended to read: 1. Exemption amount. Except for assessments for special benefits, the just value of $l~TQQQ $10,000 of the homestead of a permanent resident of this State who has owned a homestead in this State for the preceding 12 months is exempt from taxation. In determining the local assessed value of the exemption, the Page l-LR2265(5) HOUSE AMENDMENT
Maine Legislature, Session 122, LD 1625
Committee Amendment CA_A-HA_A_H630 (House)
Amends: 36 MRSA §683, 36 MRSA §685

HOUSE AMENDMENT 'A" to COMMITTEE AMENDMENT "A" to S.P. 602, 
L.D. 1625, Bill, "An Act To Fully Fund the Homestead Exemption" 
Amend 
the 
amendment 
by 
inserting 
after 
the 
title 
the 
following: 
'Amend the bill by striking out the title and substituting 
the following: 
'An Act To Increase the Funding of the Homestead Exemption" 
Further amend the amendment in the first paragraph after the 
title in the first line 
(page 
1, 
line 
in amendment) 
by 
striking out the following: 
"Amend" and inserting in its place 
the following: 'Further amend' 
Further amend the amendment by striking out all of Part A 
and inserting in its place the following: 
'PART A 
Sec. A-I. 36 MRSA §683, sub-§I, as repealed and replaced by PL 
2005, c. 2, Pt. F, §l and affected by §5, is amended to read: 
1. 
Exemption amount. 
Except for assessments for special 
benefits, the just value of $l~TQQQ $10,000 of the homestead of a 
permanent resident of this State who has owned a homestead in 
this State for the preceding 12 months is exempt from taxation. 
In determining the local assessed value of the exemption, 
the 
Page l-LR2265(5) 
HOUSE AMENDMENT 
~f!(s;. 
~~ 
HOUSE AMENDMENT ·4· to COMMITTEE AMENDMENT "A" to S. P . 602, L . D . 
1625 
assessor shall multiply the amount of the exemption by the ratio 
of current just value upon which the assessment is based as 
furnished in the assessor' s 
annual return pursuant 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 
$li r 999 $10,000 of the just value of the homestead, but may be 
apportioned 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 partial interest in a homestead 
owned jointly or in COmmon. 
Sec. A -2. 36 MRSA §683, sub-§§3 and 4, as amended by PL 2005, 
c. 2, Pt. F, §3 and affected by §5, are further amended to read: 
3. 
Effect on state valuation. 
~iE~y-pe:€eRt For property 
tax years beginning in 2005 and 2006, 70% of the just value of 
homesteads exempt under this subchapter must be inc 1 uded in the 
annual determination of state valuation under sections 208 and 
305. 
For property tax years beginning in 2007 and beyond, 100'?-0 
of the just value of homesteads exempt under this subchapter must 
be included in the annual determination of state valuation under 
sections 208 and 305. 
4. 
Property tax rate. 
~:it"t.y--pe-FeeB~ 
For 
property tax 
years beginning in 2005 and 2006, 70% of the value of homestead 
exemptions under this subchapter must be included in the total 
municipal valuation used to determine the municipal tax rate. 
For property tax years beginning in 2007 and beyond, 100% of the 
value of homestead exemptions 
under this subchapter must be 
included in the total municipal 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. A -3. 36 MRSA §685, sub-§2, as amended by PL 2005, c. 2, 
Pt. F, §4 and affected by §5, is further amended to read: 
2. 
Entitlement to reimbursement by State; calculation. 
A 
municipali ty that has approved homestead exemptions under this 
subchapter may recover from the State §9%. 70'l-0 of the taxes lost 
by reason of the exemptions upon proof in a form satisfactory to 
the bureau. 
For property tax years beginning in 2007 and beyond, 
a municipality that has approved homestead exemptions under this 
subchapter may recover from the State 100'l-0 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 §9%. 70% of taxes lost by reason 
of the exemption. 
For property tax years beginning in 2007 and 
beyond, 
the bureau shall 
reimburse the Unorganized Territory 
HOUSE AMENDMENT 
~~ 
.~ 
HOUSE AMENDMENT "A" to COMMITTEE AMENDMENT "A" to S.P. 602, L.D. 
1625 
Education and Services Fund for 100% of taxes lost by reason of 
the exemption. 
Sec. 
A·4. 
Appropriations 
and 
allocations. 
appropriations and allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, 
DEPARTMENT OF 
The 
following 
Homestead Property Tax Exemption - Mandate Reimbursement 
0886 
Initiative: 
Provides 
funds 
to increase the 
reimbursement to 
municipalities from 50% to 70% and reduce the homestead exemption 
to $10,000. 
GENERAL FUHD 
All Other 
GENERAL FUND TOTAL 
2005-06 
$1,482,374 
$1,482,374 
Homestead Property Tax Exemption - Mandate Reimbursement 
2006-07 
$1,338,448 
$1,338,448 
0887 
Ini tiati ve: 
Provides funds to reimburse municipalities for the 
additional costs of applying the change retroactively to property 
tax valuations made on April 1, 2005. 
GENERAL FUHD 
All Other 
GENERAL FUND TOTAL 
ADMINISTRATIVE AND FINANCIAL SERVICES, 
DEPARTMENT OF 
DEPARTMENT TOrALS 
GENERAL FUHD 
DEPARTMENT TOrAL -
ALL FUNDS 
2005-06 
$400,000 
$400,000 
2005-06 
$1,882,374 
$1,882,374 
2006-07 
$0 
$0 
2006-07 
$1,338,448 
$1,338,448 
Sec. 
A·5. 
Retroactive 
application. 
This 
Part 
applies 
retroactively to property tax valuations determined on or after 
April 1, 2005.' 
Further 
amend the 
amendment in Part B in section 3 
by 
striking out all of the last 4 lines (page 4, lines 1 to 4 in 
amendment) and inserting in their place the following: 
'GENERAL FUHD 
All Other 
HOUSE 
2005-06 
$2,270,088 
2006-07 
$1,951, 888 
AMENDMENT 
~.t:i!~ 
HOUSE AMENDMENT "A" to COMMITTEE AMENDMENT "A" to S.P. 602, L.D. 
1625 
GENERAL FUND TOTAL 
$2,270,088 
$1,951, 888' 
SUMMARY 
This 
amendment decreases the Maine resident property tax 
exemption 
amount 
from 
$13,000 
to 
$10,000 
and 
increases 
the 
reimbursement to municipalities to 100~ in 2 steps. 
For property 
tax years 2005 and 2006, the State will reimburse municipalities 
70~ of the lost property tax revenue. 
Beginning with property 
tax year 2007, the reimbursement by the State increases to 100%. 
the 
This amendment also eliminates the 
Maine 
Budget 
Stabilization 
Fund 
Amendment "A." 
transfer of funds from 
proposed 
in 
Committee 
FISCAL NOTE REQUIRED 
(See attached) 
SPONSORED BY: ~ 
~ 
(Representative FLOOD) 
TOWN: 
Winthrop 
HOUSE AMENDMENT 
Approved: 06102/05 ~ae 
LD 1625 
LR2265(05) 
An Act To Fully Fund the Homestead Exemption 
Fiscal Note for House Amendment ,A, to Committee Amendment" A " 
Sponsor: Rep. Flood· 
Fiscal Note Required: Yes 
Fiscal Note 
Projections 
2005-06 
2006-07 
2007-08 
Net Cost (Savings) 
General Fund 
$0 
$0 
$17,268,993 
Appropriations/Allocations 
General Fund 
($33,987,714) 
($613,440) 
$16,690,247 
Revenue 
General Fund 
($387,714) 
($613,440) 
($578,747) 
Other Special Revenue Funds 
($21,267) 
($33,649) 
($31,746) 
Transfers 
General Fund 
($33,600,000) 
$0 
$0 
Fiscal Detail and Notes 
Projections 
2008-09 
$20,898,694 
$20,278,419 
($620,275) 
($34,024) 
$0 
This amendment has no net General Fund impact in the 2006-2007 biennium. It decreases General Fund revenue by 
$387,714 in fiscal year 2005-06 and $613,440 in fiscal year 2006-07. It eliminates the $33,600,000 transfer from the 
Maine Budget Stabilization Fund and reduces the General Fund appropriations required by $33,987,714 in fiscal year 
2005-06 and $613,440 in fiscal year 2006-07. 
LR2265(5) - Fiscal Note - Page 1 of 1