An Act To Require the State's Share of Local Aid to Education To Be Used for Property Tax Relief
Maine Legislature, Session 123, LD 0945
Committee: Taxation
Sponsors: TURNER, RA YE, CAIN, GILES, MILLETT
Amends: 20-A MRSA §15671-A, 36 MRSA §507, 36 MRSA §508

Legislative Document 
No. 945 
S.P.296 
March 1, 2007 
An Act To Require the State's Share of Local Aid to Education To 
Be Used for Property Tax Relief 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Senator TURNER of Cumberland. 
JOY J. O'BRIEN 
Secretary of the Senate 
Cosponsored by Senator: RA YE of Washington, Representatives: CAIN of Orono, GILES of 
Belfast, MILLETT of Waterford, .WOODBURY of Yarmouth. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 20-A MRSA §15671-A, sub-§5, ~A, as enacted by PL 2005, c. 2, Pt. D, 
§35 and affected by §§72 and 74 and c. 12, Pt. WW, § 18, is amended to read: 
A. The article approving the additional amount must conform to the requirements of 
section 15690, subsection 3, paragraph B. Notwithstanding section 1304, subsection 
6; section 1701, subsection 7; Title 30-A, section 2528, subsection 5, or any other 
provision of law, municipal charter provision or ordinance, voter approval of the 
article, whether in town meeting, district meeting or other voting process established 
by law, municipal charter or ordinance, including, but not limited to, any vote on the 
article initiated by voter petition, must be by referendum or written ballot initiated by 
a petition requesting a vote on the additional amount signed by at least 10% of the 
number of voters voting in the last gubernatorial election in the municipality. The 
election must be held within 45 days of the submission of the petition. The election 
must be called, advertised and conducted according to the law relating to municipal 
elections, except that the registrar of voters is not required to prepare or the clerk to 
post a new list of voters and absentee ballots must be prepared and made available at 
least 14 days prior to the date of the referendum. For the purpose of registration of 
voters, the registrar of voters must be in session the secular day preceding the 
election. The voters shall indicate by a cross or check mark placed against the word 
"Yes" or "No" their opinion on the article. The results must be declared by the 
municipal officers and entered upon the municipal records. 
Sec. 2. 20-A MRSA §15671-A, sub-§5, ~, as amended by PL 2005, c. 12, Pt. 
WW, §3 and affected by § 18, is repealed. 
Sec. 3. 36 MRSA §507, first ~, as amended by PL 1997, c. 643, Pt. HHH, §2 and 
affected by § 10, is further amended to read: 
When a municipality issues a property tax bill to each taxpayer, each bill must 
contain a statement or calculation that demonstrates the amount or percentage by which 
the taxpayer's tax has been reduced by the distribution of state-municipal revenue sharing, 
state reimbursement for the Maine resident homestead property tax exemption and state 
aid for education and that specifically identifies the amount of any mill rate reduction 
calculated under section 508 attributable to increased state education funding. 
The 
property tax biII must contain a statement of the assessed value of a homestead, before 
and after the calculation of a Maine resident homestead property tax exemption, and the 
amount of the exemption applied to the homestead. 
The State Tax Assessor shall 
annually provide each municipality with the amount of state-municipal revenue sharing 
and state aid for education subject to identification under this section. 
Sec. 4. 36 MRSA §508 is enacted to read: 
§508. Mill rate reduction due to increased state aid to education 
Municipal property taxes must be reduced by 90% of the amount of additional state 
funding made available according to the following procedures. 
.. 
1. State notice. Beginning in fiscal year 2007-08, the Commissioner of Education 
shall notify each school administrative unit by April 15th annually of any projected 
increase in state education funding to the unit for the next fiscal year over the current year 
as a result of the increase in the state share of the cost of essential programs and services 
under Title 20-A, chapter 606-B. 
2. 
School administrative unit notice. 
By May 1 st annually each school 
administrative unit shall notify each municipality within the jurisdiction of the school 
administrative unit of the municipality's share ofthe cost of education calculated: 
A. With any additional funding identified under subsection 1; and 
B. As it would be calculated without additional funding identified under subsection 
1. 
3. Municipal reduction. Each municipality shall establish a separate fund dedicated 
to reducing the property tax containing the amounts determined by subtracting the 
amount determined under subsection 2, paragraph B from the amount determined under 
subsection 2, paragraph A. When calculating the municipal mill rate for the next fiscal 
year for which local property taxes are calculated, the municipality shall reduce its 
commitment for property taxes by the amount available in the fund. 
SUMMARY 
This bill proposes that, beginning with fiscal year 2007-08, 90% of the growth in the 
State's share of local aid to education must be used to reduce the municipal property tax. 
The bill also provides that spending limits for local school administrative units may only 
be exceeded by a voter referendum called by petition of at least 10% of the number of 
voters at the last election for Governor.