Maine Legislature, Session 123, LD 1601
Committee: Taxation
Sponsors: CHASE, KNIGHT, RAND

Legislative Document 
No. 1601 
H.P.1123 
House of Representatives, March 21, 2007 
RESOLUTION, Proposing an Amendment to the Constitution of 
Maine To Create a Longtime Resident Tax Cap Program 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative CHASE of Wells. 
Cosponsored by Senator N ASS of York and 
7f/~m.~ 
Mll..LICENT M. MacFARLAND 
Clerk 
Representatives: KNIGHT of Livermore Falls, Pll..ON of Saco, RAND of Portland. 
Printed on recycled paper 
Constitutional amendment. Resolved: 
Two thirds of each branch of the 
Legislature concurring, that the following amendment to the Constitution of Maine be 
proposed: 
Constitution, Art. IX, §8, first ~ is amended to read: 
Section 8. Taxation. All taxes upon real and personal estate, assessed by authority 
of this State, shall be apportioned and assessed equally according to the just value thereof~ 
except as provided in this section. 
Constitution, Art. IX, §8, sub-§6 is enacted to read: 
6. Assessment of homestead based on length of residence; penalty for change. 
The Legislature has the power to implement a program to provide for the assessment at a 
fixed rate of real property owned and occupied as the primary residence for at least 10 
years. The fixed rate of assessment is established as of the date the property is entered 
into the program. If title to the property is transferred to someone other than a direct 
relative of the owner, which means a parent, spouse, child or grandchild of the owner, or 
otherwise removed from the program, the property assumes the just value determined as 
of April 1 st immediately following removal from the program, adjusted to be In 
conformance with other property not in this program. 
In implementing this subsection, the Legislature shall provide that any change of 
ownership or other withdrawal from the program, except when the change is occasioned 
by a transfer to someone other than a direct relative or resulting from the exercise or 
threatened exercise of the power of eminent domain, must result in the imposition of a 
minimum penalty as follows: 
A. If the property is removed from the program within the first 5 years of being 
enrolled, then the penalty is the difference between the taxes that were actually 
imposed and the taxes that would have been imposed absent this program, interest on 
that difference and an amount equal to 30% of the most recent tax assessment on that 
property prior to the date of removal from the program; 
B. If the property is removed from the program after being enrolled for at least 5 
years, but fewer than 10 years, the penalty is the difference between the taxes that 
were actually imposed and the taxes that would have been imposed absent this 
program, interest on that difference and an amount based on the number of years the 
property was enrolled in the program, as provided in this paragraph. 
If the property was in the program for at least 5 years but less than: 
0) Six years, 25% of the most recent tax assessment on that property prior to the 
date ofremoval from the program; 
(2) Seven years, 20% of the most recent tax assessment on that property prior to 
the date of removal from the program; 
(3) Eight years, 15% of the most recent tax assessment on that property prior to 
the date of removal from the program; 
(4) Nine years, 10% of the most recent tax assessment on that property prior to 
the date of removal from the program; and 
(5) Ten years, 5% of the most recent tax assessment on that property prior to the 
date of removal from the program; and 
C. If the property is removed from the program after being enrolled for at least 10 
years, the penalty is the difference between the taxes that were actually imposed and 
the taxes that would have been imposed absent this program for the 5 years 
immediately prior to removal from the program and interest on that difference. 
The assessed value of property in the program may be adjusted annually on April 1 st but 
only to reflect the assessed value of additions, deletions, improvements to or destruction 
of the property. 
; 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 held in the month 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 authorize the Legislature to 
establish a program to fix the rate of assessment on real property that has been the 
primary residence of its owner for at least 10 years at the same level as imposed on 
the property as on the date of entry into the program and to impose penalties for the 
withdrawal or removal of the property from the program, including by sale to a 
person not directly related to the owner?" 
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, 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. 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 resolution proposes to amend the Constitution of Maine to authorize the 
Legislature to create a program, similar to the Maine Tree Growth Tax Law, for real 
property owned and occupied as a person's primary residence for at least 10 years. 
Property would receive a fixed assessment equal to the tax assessment in effect at the 
time the property was enrolled in the program. 
If the property was transferred to 
someone other than the spouse, parent, child or grandchild of the owner or the owner 
withdrew the property from the program, penalties would apply, including the difference 
between the taxes actually paid and the taxes that would have been assessed if not for 
being in the program, interest and a percentage of the most recent tax assessment on that 
property prior to the date of removal from the program. Upon removal from the program, 
the property would assume the just value as determined as of the April 1 st immediately 
following withdrawal. 
The only reason the assessed value of property in the program could be changed 
would be to reflect additions, subtractions or improvements to the property or the 
destruction of the property.