An Act To Impose a Real Estate Transfer Tax Based on the Value of the Property
Maine Legislature, Session 123, LD 1145
Committee: Taxation
Sponsors: KOFFMAN, PERRY, ADAMS, CHASE, PINGREE, PIOTTI, RAND, WATSON, STRIMLING
Amends: 36 MRSA §4641-A, 36 MRSA §4641-B

Legislative Document 
No. 1145 
H.P.838 
House of Representatives, March 7,2007 
An Act To Impose a Real Estate Transfer Tax Based on the Value of 
the Property 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative KOFFMAN of Bar Harbor. 
Cosponsored by Senator PERRY of Penobscot and 
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MILLICENT M. MacFARLAND 
Clerk 
Representatives: ADAMS of Portland, CHASE of Wells, PINGREE of North Haven, PIOTTI 
of Unity, RAND of Portland, WATSON of Bath, Senator: STRIMLING of Cumberland. 
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affected by § 15, is repealed.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. A tax is imposed on each deed by which any real property in this State 
is transferred. 
A. The rate of tax imposed on the grantee 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. 
0) For property valued at less than $300,000, the tax is $2 for each $1,000 or 
fractional part of $1,000 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 property valued at $400,000 or more but less than $500,000, the tax is $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 
transferred. 
(8) For property valued at $900,000 or more but less than $1,000,000, the tax is 
$9 for each $1.000 or fractional part of $1,000 of the value of the property 
transferred. 
(9) For property valued at $1,000,000 or more, the tax is 1% of the value of the 
property transferred. 
Sec. 3. 36 MRSA §4641-B, sub-§4, as amended by PL 2005, c. 644, §4, 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 with documentation showing the amount of 
revenues derived from the tax imposed by section 4641-A, subsection 1 and the amount 
of revenues derived from the tax imposed by section 4641-A, subsection 2. 
The 
Treasurer of State shall credit W 10% of the revenues derived from the tax imposed by 
section 4641-A, subsection 1 to the General Fund county where the tax was collected and 
shall monthly pay 45% of the remaining 1/2 of such revenues to the Maine State Housing 
Authority, which shall deposit the funds in the Housing Opportunities for Maine Fund 
created in Title 30-A, section 4853, except that in fiscal year 2003 04, fiscal year 2004 05 
and fiscal year 2005 06, $7,500,000 of the remaining 1/2 of those revenues must be 
transferred to the General Fund before any payments are made to the Maine State 
Housing Authority and in fiscal year 2006-07, $7,687,067 of the remaining W 45% of 
those revenues must be transferred to the General Fund before any payments are made to 
the Maine State Housing Authority and the remaining 45% to the so-called circuit breaker 
reserve estab lished, maintained 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 value 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. 
Ten percent of the revenue from the tax is credited to the county where the tax was 
collected, 45% to the Maine State Housing Authority and 45% to the so-called circuit 
breaker reserve to fund the Maine Residents Property Tax Program.