An Act To Fully Fund the Homestead Exemption
Maine Legislature, Session 122, LD 1625
Committee Amendment CA_A_S306 (Senate)
Amends: 36 MRSA §683, 36 MRSA §685

COMMITTEE AMENDMENT ,A" to S.P. 602, L.D. 1625, Bill, "An 
Act To Fully Fund the Homestead Exemption" 
Amend the bill by striking out everything after the enacting 
clause and before the summary and inserting in its place the 
following: 
'PART A 
Sec. A-I. 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. 
i!ifEy--pe-~t---e-f--t.Re 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. 
i!ift.Y--p&£-€!-em--o-f.-ERe 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-2. 36 MRSA §685, sub-§2, as amended by PL 2005, c. 2, 
Pt. F, §4 and affected by §5, is further amended to read: 
COMMITTEE AMENDMENT 
ft.~ 
~ 
COMMITTEE AMENDMENT A .. to S.P. 602, L.D. 1625 
2. 
Entitlement to reimbursement by State: calculation. 
A 
-municipality that has approved homestead exemptions under this 
subchapter may recover from the State §Q% 100% 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 §Q% 100% of taxes lost by reason 
of the exemption. 
Sec. A-3. 
Transfer from 
Maine Budget Stabilization Fund. 
Notwithstanding the Maine Revised Statutes, Title 5, chapter 142, 
the State Controller shall transfer $33,600,000 from the Maine 
Budget Stabilization Fund to the General 
Fund unappropriated 
surplus no later than June 30, 2006. 
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: 
To increase the reimbursement to municipalities from 
50% to 100% of the increase in the homestead exemption to $13,000. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2005-06 
$35,438,172 
$35,438,172 
2006-07 
$36,267,826 
$36,267,826 
Homestead Property Tax Exemption - Mandate Reimbursement 
0887 
Initiative: 
Provides funds to reimburse municipalities for the 
additional costs of applying the change retroactively to property 
tax valuations made on April 1, 2005. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
ADMINISTRATIVE AND FINANCIAL SERVICES, 
DEPAR'l'MEHT OF 
DEPARTMENT TOTALS 
GENERAL FUND 
DEPAR'l'MEHT TOTAL -
ALL nnms 
2005-06 
$400,000 
$400,000 
2005-06 
$35,838,172 
$35,838,172 
2006-07 
$0 
$0 
2006-07 
$36,267,826 
$36,267,826 
COMMITTEE AMENDMENT 
~~' 
'~> 
COMMITTEE AMENDMENT ·A· to S.P. 602, L.D. 1625 
Sec. 
A-S. 
Retroactive 
application. 
This 
Part 
applies 
retroactively to property tax valuations 
April 1, 2005. 
determined on or after 
PARTB 
Sec. B-1. Spending reductions study and report. 
The Commissioner 
of 
Administrative 
and 
Financial 
Services 
shall 
coordinate 
a 
review and study of all General Fund programs and expenditures of 
state departments and agencies to achieve the amount of General 
Fund savings identified in section 3. 
The commissioner shall 
identify 
efficiencies, 
explore 
consolidations 
of 
smaller 
agencies, 
consolidate interrelated programs 
across departments 
and agencies and determine those programs that may be eliminated 
with a minimal impact on highest priority statewide goals and 
objectives. 
The commissioner shall provide the Joint Standing 
Committee on Appropriations and Financial Affairs with an interim 
report prior to January 6, 2006 and submit the final report along 
with the necessary implementing legislation to the Second Regular 
Session of the l22nd Legislature no later than February 3, 2006. 
Sec. B-2. Curtailment of allotments. 
If the legislation to 
achieve the savings identified in this Part is not enacted during 
the Second Regular Session of the 122nd Legislature, the Governor 
shall curtail allotments to achieve the amount of General Fund 
savings identified in section 3. 
The curtailment of allotments 
pursuant to this section must be implemented consistent with the 
provisions of the Maine Revised Statutes, Title 5, section 1668. 
The State Budget Officer shall calculate the amount of savings 
achieved through the curtailment of allotments that applies to 
each General Fund account. 
The Governor shall distribute the 
General Fund savings to individual programs by financial order. 
Distributions 
made 
pursuant 
to 
this 
Part 
are 
considered 
adjustments to appropriations. 
Sec. 
B-3. 
Appropriations 
and 
allocations. 
appropriations and allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, 
DEPAR"l"MENT OF 
Departments and Agencies - Statewide 
The 
following 
Initiative: 
Deappropriates funds to be achieved by reductions of 
General 
Fund 
appropr iations 
either 
through 
curtailment 
of 
allotments or efficiencies 
and 
savings 
identified through 
a 
spending reductions study. 
COMMITTEE AMENDMENT 
~~~ 
COMMITTEE AMENDMENT A" to S.P. 602, L.D. 1625 
GENERAL FUND 
A11 Other 
2005-06 
($2,238,172) 
2006-01 
($36,267,826) 
GENERAL FUND TOTAL 
($2,238,112) ($36,267,826)' 
SUMMARY 
This amendment funds the increase in state reimbursement for 
the homestead exemption by a transfer of funds that are projected 
to be available in the 
Maine 
Budget Stabilization Fund 
and 
statewide deappropriations. 
The Commissioner of Administrative 
and Financial Services is directed to present legislation to 
implement 
the 
deappropriations. 
If 
none 
is 
presented, 
the 
Governor is directed to make curtailments consistent with the 
deappropriations. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/27 105 ~ae 
LD 1625 
LR 2265(02) 
An Act To Fully Fund the Homestead Exemption 
Fiscal Note for Bill as Amended by Committee Amendment A, 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
2005-06 
2006-07 
Net Cost (Savings) 
General Fund 
$0 
$0 
Appropriations! Allocations 
General Fund 
$33,600,000 
$0 
Transfers 
General Fund 
$33,600,000 
$0 
Funded State Mandate 
State Mandate 
New or Expanded Activity 
Unit Affected 
Administrative activities associated with changing the property tax 
Municipality 
valuations determined on April }, 2005 would represent a mandate. 
Fiscal Detail and Notes 
Projections 
2007-08 
($563,048) 
($563,048) 
Costs 
$400,000 
$0 
Projections 
2008-09 
($1,135,565) 
($1,135,565) 
$0 
This bill includes General Fund appropriations of $35,438, 172 in fiscal year 2005-06 and $36,267,826 in fiscal year 
2006-07 to reimburse municipalities } 00% of the cost of the homestead property tax exemption. It also includes a one-
time Genera} Fund appropriation of $400,000 in fiscal year 2005-06 to reimburse municipalities 90% of the estimated 
administrative costs associated with applying the provisions retroactively to property tax valuations determined on 
April }, 2005. This bill also provides statewide General Fund deappropriations of $2,23 8, 172 in fiscal year 2005-06 
and $36,267,826 in fiscal year 2006-07 and a one-time transfer of $33,600,000 in fiscal year 2005-06 from the Maine 
Budget Stabilization Fund to the unappropriated surplus of the General Fund. 
LR2265(2) - Fiscal Note - Page 1 of 1