An Act To Authorize a Local Option Homestead Exemption
Maine Legislature, Session 123, LD 0879
Committee: Taxation
Sponsors: ROTUNDO
Amends: 36 MRSA §683

Legislative Document 
No. 879 
S.P.272 
February 27,2007 
An Act To Authorize a Local Option Homestead Exemption 
Reference to the Committee on Taxation suggested and ordered printed. 
JOY J. O'BRIEN 
Secretary of the Senate 
Presented by Senator ROTUNDO of Androscoggin. (BY REQUEST) 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRS A §681, first ~, as enacted by PL 1997, c. 643, Pt. HHH, §3 and 
as affected by § 1 0, is amended to read: 
As used in this subchapter and chapter 907-B, unless the context otherwise indicates, 
the following terms have the following meanings. 
Sec. 2. 36 MRSA §683, sub-§2, as enacted by PL 1997, c. 643, Pt. HHH, §3 and 
as affected by § 1 0, is amended to read: 
2. Exemption in addition to other exemptions. The exemption provided in this 
subchapter is in addition to the exemptions provided in sections 653 and 654 and chapter 
907-B. 
Sec. 3. 36 MRSA c. 907-B is enacted to read: 
CHAPTER 907-B 
LOCAL OPTION HOMESTEAD PROPERTY TAX EXEMPTION 
PROGRAM 
§6241. Short title 
This chapter may be known and cited as the Local Option Homestead Property Tax 
Exemption Program. 
§6242. Definitions 
Unless the context otherwise indicates, terms used in this chapter have the same 
meaning as defined in chapter 105, subchapter 4-B. 
§6243. Municipal authority 
The legislative body of a municipality may adopt by ordinance a program to provide 
a local option homestead property tax exemption to persons with a homestead in that 
municipality. 
1. Conditions of program. A program adopted under this section must: 
A. Have the same eligibility requirements as the homestead property tax exemption 
established in chapter 105, subchapter 4-8; and 
B. Provide a maximum exemption of20% of the just value of the homestead. 
2. Relationship to state program. Benefits received under a program adopted by a 
municipality under this chapter are in addition to benefits provided under the exemption 
in chapter 105, subchapter 4-B. 
Page I - 123LRI893(OI)-1 
3. Effect on state valuation. The municipal assessor shall subtract the value of the 
local option homestead property tax exemption under this section from the just value of 
each homestead receiving the exemption under this section for purposes of the annual 
determination of state valuation under sections 208 and 305. 
4. Property tax rate. One hundred percent of local option homestead property tax 
exemptions granted by the municipality pursuant to this chapter 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 only to the taxable portion of each qualified 
homestead for that tax year. 
5. Denial; appeals. If a municipal assessor determines that a property is not eligible 
for a local option homestead property tax exemption under this chapter, the assessor shall 
provide promptly a notice of denial, including the reasons for the denial, to the applicant 
either by personal delivery or regular mail. An applicant may appeal a denial of an 
exemption under this chapter using the procedures provided in chapter 105, subchapter 8. 
§6244. Repeal of program 
A municipality that has adopted a local option homestead property tax exemption 
program under this chapter may repeal it through the same procedure by which the 
program was adopted. 
SUMMARY 
This bill allows a municipality to adopt a local option homestead property tax 
exemption program that provides an exemption of up to 20% of the just value of the 
homestead. Eligibility criteria for the local option homestead property tax exemption 
must be the same as for the state homestead property tax exemption program. The benefit 
available under the local homestead exemption is in addition to the benefit available 
under the state homestead exemption.