Maine Legislature, Session 122, LD 0002
Committee: Property Tax Reform
Sponsors: PERCY, DAMON

Legislative Document 
No.2 
H.P.7 
House of Representatives, December 1,2004 
RESOLUTION, Proposing an Amendment to the Constitution of 
Maine To Limit the Rate of Change in Taxable Value of Homestead 
Land 
Reference to the Joint Select Committee on Property Tax Reform suggested and ordered 
printed. 
~/J1.~ 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative PERCY of Phippsburg. (GOVERNOR'S BllL) 
Cosponsored by Senator DAMON of Hancock. 
Constitutional amendment. 
Resolved: 
Two 
thirds 
branch 
of 
the 
Legislature 
concurring, 
that 
the 
amendment to the Constitution of Maine be proposed: 
Constitution, Art. IX, §8, sub-§6 is enacted to read: 
of 
each 
following 
6. 
Boaestead lapd yaIue. 
A municipality may limit the rate 
of change in the taxable value of homestead land to the rate of 
change 
in 
purchasing 
power 
of 
United 
States 
currency 
as 
consistently 
measured 
by 
a 
reliable 
index 
adopted 
by 
the 
Legislature. 
This limitation does not apply to changes in value 
anSl.ng from physical alterations to the land or arising from 
changes in law affecting authorized use of the land. 
Homestead land is land that is exclusively and continuously owned 
by one or more residents of the State while the land remains the 
principal home of each owner. 
The taxable value of the parcel 
must be restored to just value upon change in ownership or use. 
A homestead parcel gualifying for the limitation may not be 
larger than reasonably necessary to support a personal residence 
and may be otherwise limited or defined by the Legislature. 
The decision by a municipality to limit the rate of change in 
taxable value of homestead land under this subsection does not 
affect the determination of the egualized just value of taxable 
property in the municipality for anY purpose. 
and be it further 
Constitutional referendum procedure; form of question; effective 
date. Resolved: 
That the municipal officers of this State shall 
notify the inhabitants of their respective cities, 
towns 
and 
plantations to meet, in the manner prescribed by law for holding 
a statewide election, at a statewide election, on the Tuesday 
following the first Monday of November following the passage of 
this resolution, to vote upon the ratification of the amendment 
proposed in this resolution by voting upon the following question: 
"Do you favor amending the Constitution of Maine to allow 
municipalities to limit the rate of change in the taxable 
value of homestead land to the rate of change in purchasing 
power of United States currency as consistently measured by 
a reliable index adopted by the Legislature?" 
The legal voters of each city, town and plantation shall 
vote by ballot on this question and designate their choice by a 
cross or check mark placed within the corresponding square below 
the word "Yes" or "No." 
The ballots must be received, sorted, 
Page l-LR0329(1) 
counted and declared in open ward, town and plantation meetings 
and returns made to the Secretary of State in the same manner as 
votes for members of the Legislature. 
The Governor shall review 
the returns and, if it appears that a majority of the legal votes 
are cast in favor of the amendment, the Governor shall proclaim 
that fact without delay and the amendment becomes part of the 
Constitution of Maine on the date of the proclamation; and be it 
further 
Secretary of State shall prepare ballots. Resolved: 
That the 
Secretary of State shall prepare and furnish to each city, town 
and plantation all ballots, returns and copies of this resolution 
necessary to carry out the purposes of this referendum. 
SUMMARY 
This 
constitutional 
amundment 
proposes 
to 
authorize 
a 
municipality to 
limit the 
rate of 
change 
in the 
tax 
rate 
applicable to homestead land, which is land that is exclusively 
and continuously owned by one or more residents of the State 
while the land remains the principal home of each owner, to the 
rate of change in the purchasing power of United States currency 
as consistently measured by a 
reliable index adopted by the 
Legislature.