An Act Reduce Maine's Tax Burden over a 10-year Period
Maine Legislature, Session 123, LD 1582
Committee: Taxation
Sponsors: WOODBURY, NASS, PIOITI, PERRY
Amends: 5 MRSA §1531, 5 MRSA §1534, 20-A MRSA §15671-A, 20-A MRSA §15672, 30-A MRSA §706-A

Legislative Document 
No. 1582 
H.P.ll07 
House of Representatives, March 20, 2007 
An Act Reduce Maine's Tax Burden over a 10-year Period 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative WOODBURY of Yarmouth. 
Cosponsored by Senator NASS of York and 
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MILLICENT M. MacFARLAND 
Clerk 
Representative: PIOITI of Unity, Senator: PERRY of Penobscot. 
Primed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 5 MRS A §1531, sub-§l, as enacted by PL 2005, c. 2, Pt. A, §5 and 
affected by § 14, is repealed. 
Sec. 2. 5 MRSA §1531, sub-§10 is enacted to read: 
10. Tax burden reduction factor. "Tax burden reduction factor" means: 
A. For fiscal years 2008-09 and 2009-10,50%; 
B. For fiscal years 2010-11 and 2011-12, 60%; 
C. For fiscal years 2012-13 and 2013-14, 70%; 
D. For fiscal years 2014-15 and 2015-16,80%; 
E. For fiscal years 2016-17 and 2017-18, 90%; and 
F. For fiscal year 2018-19 and later, 100%. 
Sec. 3. 5 MRS A §1531, sub-§l1 is enacted to read: 
11. Total income growth factor. "Total income growth factor" means average real 
personal income growth plus forecasted inflation. 
Sec. 4. 5 MRSA §1534, sub-§l, ~A, as enacted by PL 2005, c. 2, Pt. A, §5 and 
affected by §14, is amended to read: 
A. 
For the first fiscal year of the biennium, the General Fund appropriation 
limitation is equal to the biennial base year appropriation multiplied by one plus the 
spending growth limitation factor in subsection 2. 
Sec. 5. 5 MRSA §1534, sub-§l, ~, as amended by PL 2005, c. 621, §3, is 
further amended to read: 
B. 
For the 2nd year of the biennium, the General Fund appropriation limitation is 
the General Fund appropriation limitation of the first year of the biennium biennial 
base year appropriation multiplied by one plus the spending growth limitation factor 
in subsection 2. 
Sec. 6. 5 MRSA §1534, sub-§2, as enacted by PL 2005, c. 2, Pt. A, §5 and 
affected by §14, is repealed and the following enacted in its place: 
2. Spending growth limitation factor. The spending growth limitation factor is the 
total income growth factor multiplied by the tax burden reduction factor. The spending 
growth limitation factor may not be less than zero. 
Sec. 7. 20-A MRSA §15671-A, sub-§3, as amended by PL 2005, c. 2, Pt. D, §35 
and affected by §§72 and 74 and c. 12, Pt. WW, §18, is repealed. 
Sec. 8. 20-A MRSA §15671-A, sub-§5, as amended by PL 2005, c. 519, Pt. 
AAAA, §2, is repealed. 
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Sec. 9. 20-A MRSA §15671-A, sub-§6 is enacted to read: 
6. Exceeding EPS local growth factor. If the sum of a school administrative,l' 
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required local contribution determined pursuant to section 15688, subsection 3-A plus the 
state contribution as calculated pursuant to section 15688, subsection 3-A, paragraph D 
plus any state funds resulting from a transition adjustment pursuant to section 15686 plus 
any additional local amount proposed to be raised pursuant to section 15690, subsection 3 
exceeds the amount permitted to be spent by the school administrative unit for the 
preceding year by more than the education spending growth limit factor, the following 
provisions govern approval of that additional amount. 
A. The article approving the additional amount must conform to the requirements of 
section 15690, subsection 3, paragraph B. 
B. For all school administrative units that finally approve the school budget at a town 
meeting or district meeting, and 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, the article must be approved by at 
least 2/3 of the school administrative unit's legislative body or, if the legislative body 
votes to approve the article by a simple majority but not by at least a 2/3 majority, 
the article must be finally approved by a majority of voters at referendum. 
C. For all school administrative units with a legislative body that adopts the school 
budget by a referendum process, the article must be approved by a majority of voters 
at referendum. 
D. For all school administrative districts and community school districts that have 
adopted the budget validation process established in sections 1305-A or 170 I-A, the 
article must be approved by a majority of the voters at the open district meeting and a 
majority of voters at the budget validation referendum. 
E. In a municipality where the responsibility for final adoption of the school budget 
is vested by the municipal charter in a council, this paragraph applies, except that the 
petition and referendum provisions apply only if the municipal charter does not 
otherwise provide for or prohibit a petition and referendum process with respect to 
the matters described in this paragraph. 
(I) A majority of the entire membership of the school board or committee must 
approve the additional amount in a regular budget meeting. 
(2) An article approving the additional amount must conform to the requirements 
of section 15690, subsection 3, paragraph B and be approved by at least 2/3 of 
the entire membership of the council in a vote taken in accordance with section 
15690, subsection 5 or, if the council votes to approve the article by a simple 
majority of the council but not by at least a 2/3 majority of the entire 
membership, by a majority of voters at referendum. 
(3) If an article is approved by at least 2/3 of the entire membership of the 
council pursuant to subparagraph (2), the voters may petition for a referendum 
vote on the same article in accordance with subparagraph (4). If a petition is filed 
in accordance with subparagraph (4), the vote of the council is suspended 
pending the outcome of the referendum vote. Upon approval of the article by a 
majority of the voters voting in that referendum, the article takes effect. If the 
article is not approved by a majority of the voters voting in that referendum, the 
article does not take effect. Subsequent to the vote, the school committee or 
board may again propose an additional amount, subject to the requirements of 
this section. 
(4) If a written petition, signed by at least 10% of the number of voters voting in 
the last gubernatorial election in the municipality, requesting a vote on the 
additional amount is submitted to the municipal officers within 30 days of the 
council's vote pursuant to subparagraph (2), the article voted on by the council 
must be submitted to the legal voters in the next regular election or a special 
election called for the purpose. 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. 10. 20-A MRSA §15672, sub-§3-A is enacted to read: 
3-A. Education spending growth limit factor. "Education spending growth limit 
factor" means the EPS local growth factor multiplied by the tax burden reduction factor 
as defined in Title 5, section 1531, subsection 10. The education spending growth limit 
factor may not be less than zero. 
Sec. 11. 20-A MRSA §15672, sub-§7-B is enacted to read: 
7-B. EPS local growth factor. "EPS local growth factor" means the percentage 
increase in the state-determined cost of essential programs and services for a school 
administrative unit over the preceding year. 
Sec. 12. 30-A MRSA §706-A, sub-§l, ~C-l is enacted to read: 
C-l. "Local distribution factor" means the figure determined by dividing the property 
growth factor by the average of the property growth factors for all counties. 
Sec. 13. 30-A MRSA §706-A, sub-§l, ~ 
is enacted to read: 
F. "Tax burden reduction factor" means: 
(1) For fiscal years 2008-09 and 2009-10, 50%; 
(2) For fiscal years 2010-11 and 2011-12, 60%; 
(3) For fiscal years 2012-13 and 2013-14, 70%; 
(4) For fiscal years 2014-15 and 2015-16,80%; 
(5) For fiscal years 2016-17 and 2017-18, 90%; and 
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IS 
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(6) For fiscal year 2018-19 and later, 100%. 
Sec. 14. 30-A MRSA §706-A, sub-§I, ~G is enacted to read: 
G. "Total income growth factor" means average real personal income growth plus 
forecasted inflation. 
Sec. 15. 30-A MRSA §706-A, sub-§3, as enacted by PL 2005, c. 2, Pt. B, § I and 
affected by §§2 and 4 and c. 12, Pt. WW, §14, is repealed and the following enacted in its 
place: 
3. Growth limitation factor. 
The growth limitation factor is the total income 
growth factor multiplied by the local distribution factor and the tax burden reduction 
factor. The growth limitation factor may not be less than zero. 
Sec. 16. 30-A MRSA §706-A, sub-§5, ~, as enacted by PL 2005, c. 2, Pt. B, § I 
and affected by §§2 and 4 and c. 12, Pt. WW, § 14, is amended to read: 
B. 
The county assessment limit may be exceeded only as provided in subsection + 
7-A. 
Sec. 17. 30-A MRSA §706-A, sub-§5, ~, as enacted by PL 2005, c. 348, § I, is 
amended to read: 
D. 
For fiscal years 2005-06 and 2006-07 in Sagadahoc County, and fiscal years 
2006 and 2007 in Lincoln County, that portion of the county assessment that is 
attributable to the costs of construction, debt service, operation and maintenance of a 
new jail facility authorized under chapter 17 is not subject to paragraphs A, Band C 
or to subsections 2, 6 and + 7-A. Notwithstanding subsection 2, paragraph A, the 
county assessment limit for fiscal year 2007-08 for Sagadahoc County and fiscal year 
2008 in Lincoln County is the county assessment for each county for the previous 
fiscal year, multiplied by one plus the growth limitation factor pursuant to subsection 
3. Notwithstanding subsection 2, paragraph C, the county assessments for Sagadahoc 
County in fiscal year 2008-09 and subsequent fiscal years and for Lincoln County in 
fiscal year 2009 and subsequent fiscal years are subject to subsection 2, paragraph B. 
Sec. 18. 30-A MRSA §706-A, sub-§6, as enacted by PL 2005, c. 2, Pt. B, § I and 
affected by §§2 and 4 and c. 12, Pt. WW, §14, is amended to read: 
6. Increase in county assessment limit. The county assessment limit established in 
subsection 2 may be.increased for other purposes only as provided in subsection + 7-A. 
Sec. 19. 30-A MRSA §706-A, sub-§7, as affected by PL 2005, c. 2, Pt. B, §4 and 
amended by c. 12, Pt. WW, § 1 0 and affected by §§ 13 and 14, is repealed. 
Sec. 20. 30-A MRSA §706-A, sub-§7-A is enacted to read: 
7-A. Process for exceeding county assessment limit. A county may exceed or 
increase the county assessment limit only if approved by a vote of a majority of all the 
members of both the county budget committee or county budget advisory committee and 
the county commissioners and the approval is ratified at referendum. For the purposes of 
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conducting the referendum election, the article voted on by the commissioners and budget 
advisory committee must be submitted to the legal voters in the next regular election or a 
special election called for that purpose. 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, the filing 
requirement contained in section 2528 does not apply 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 business 
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 county commissioners and entered upon the county records. 
Sec. 21. 30-A MRSA §S721-A, sub-§l, ~-1 is enacted to read: 
B-1. "Local distribution factor" means the figure determined by dividing the property 
growth factor by the average of the property growth factors for all municipalities. 
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Sec. 22. 30-A MRSA §S721-A, sub-§l, W is enacted to read: 
F. "Tax burden reduction factor" means: 
(1) For fiscal years 2008-09 and 2009-10, 50%; 
(2) For fiscal years 2010-11 and 2011-12,60%; 
(3) For fiscal years 2012-13 and 2013-14, 70%; 
(4) For fiscal years 2014-15 and 2015-16,80%; 
(5) For fiscal years 2016-17 and 2017-18, 90%; and 
(6) For fiscal year 2018-19 and later, 100%. 
Sec. 23. 30-A MRSA §S721-A, sub-§l, ~G is enacted to read: 
G. "Total income growth factor" means average real personal income growth plus 
forecasted inflation. 
Sec. 24. 30-A MRSA §S721-A, sub-§S, ~, as enacted by PL 2005, c. 2, Pt. C, 
§ 1 and affected by §§3 and 5 and c. 12, Pt. WW, § 16, is amended to read: 
B. 
The property tax levy limit may be exceeded only as provided in subsection::; 7-
A. 
Sec. 2S. 30-A MRSA §S721-A, sub-§6, as enacted by PL 2005, c. 2, Pt. C, § 1 
and affected by § §3 and 5 and c. 12, Pt. WW, § 16, is amended to read: 
6. Increase in property tax levy limit. The property tax levy limit established in 
subsection 2 may be increased for other purposes only as provided in subsection::; 7-A. 
Sec. 26. 30-A MRS A §S721-A, sub-§7, as affected by PL 2005, c. 2, Pt. C, §5 
and amended by c. 12, Pt. WW, §12 and affected by §§15 and 16, is repealed. 
Sec. 27. 30-A MRSA §S721-A, sub-§7-A is enacted to read: 
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7-A. Process for exceeding property tax levy limit. A municipality may exceed or 
_increase the property tax levy limit only by the following means. 
A. If the municipal budget is adopted by town meeting, the property tax levy limit 
may be exceeded only if approved by at least 2/3 of the assembled membership of the 
town meeting or, if the legislative body votes to approve the article by a simple 
majority but not by at least a 2/3 majority, the property tax levy limit may be 
exceeded only if finally approved by a majority of voters at referendum. 
B. If the municipal budget is adopted by referendum, the property tax levy limit may 
be exceeded only if a separate article that specifically identifies the intent to exceed 
the property tax levy limit is approved by a simple majority of the referendum voters. 
C. 
In a municipality where the responsibility for final adoption of the budget is 
vested by the municipal charter in a council, this paragraph applies, except that the 
petition and referendum provisions apply only if the municipal charter does not 
otherwise provide for or prohibit a petition and referendum process with respect to 
the matters described in this paragraph. 
( I) An article approving the property tax levy limit must be approved by at least 
2/3 of the entire membership of the councilor, if the council votes to approve the 
article by a simple majority of the council but not by at least a 2/3 majority of the 
entire membership, by a majority of voters at referendum. 
(2) If an article is approved by at least 2/3 of the entire membership of the 
council pursuant to subparagraph (1), the voters may petition for a referendum 
vote on the same article in accordance with subparagraph (3). If a petition is filed 
in accordance with subparagraph (3), the vote of the council is suspended 
pending the outcome of the referendum vote. Upon approval of the article by a 
majority of the voters voting in that referendum, the article takes effect. If the 
article is not approved by a majority of the voters voting in that referendum, the 
article does not take effect. Subsequent to the vote, the school committee or 
board may again propose an additional amount, subject to the requirements of 
this section. 
(3) Ifa written petition, signed by at least 10% of the number of voters voting in 
the last gubernatorial election in the municipality, requesting a vote on the 
additional amount is submitted to the municipal officers within 30 days of the 
council's vote pursuant to subparagraph (1), the article voted on by the council 
must be submitted to the legal voters in the next regular election or a special 
election called for the purpose. 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. 
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Sec. 28. Application. The provisions of this Act apply to budgets for the first 
fiscal year that begins after the effective date of this Act. 
Sec. 29. Statutory referendum procedure; submission at election; form of 
question; effective date. This Act must be submitted to the legal voters of the State at 
a statewide election held in the month of November following the passage of this Act. 
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, to vote on the acceptance or rejection of this Act by voting on the following 
question: 
"Do you favor adopting a 10-year plan to reduce Maine's tax burden by 
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establishing a statewide tax burden reduction factor and by establishing 
strict requirements to override the tax burden reduction limits imposed in 
the 10-year plan?" 
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 a corresponding square 
below the word "Yes" or "No." 
The ballots must be received, sorted, counted and 
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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. If a majority of the legal votes are cast in favor of this Act, the 
Governor shall proclaim the result without delay and this Act becomes effective 30 days 
after the date of the proclamation. 
The Secretary of State shall prepare and furnish to each city, town and plantation all 
ballots, returns and copies of this Act necessary to carry out the purposes of this 
referendum. 
SUMMARY 
This bill puts in place a 10-year plan to reduce Maine's tax burden by establishing a 
statewide tax burden reduction factor that would gradually lower taxes over time. The 
bill also defines procedures necessary to override the tax burden reduction limits imposed 
in the 10-year plan. The changes proposed by this bill are subject to approval by the 
voters at a referendum vote in November 2007. 
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