Maine Legislature, Session 123, LD 1819
Committee Amendment CA_A_S271 (Senate)

Ma.iority 
COMMITTEE AMENDMENT "A" to S.P. 648, L.D. 1819, "RESOLUTION, 
Proposing an Amendment to the Constitution of Maine To Restrict Tax Increases" 
Amend the resolution in Part A in Section 24 by striking out all of subsection 1 (page 
I, lines 7 to 10 in L.D.) and inserting the following: 
'1. Income tax, motor vehicle excise tax and sales tax. Except as provided in 
subsection 2, the statutory rates of any income tax, motor vehicle excise tax or sales tax 
may not be increased or decreased except by enactment of legislation approved by 2/3 of 
all members of each House of the Legislature; and' 
Amend the resolution in Part A by striking out all of the question (page 1, lines 22 to 
in L.D.) and inserting the following: 
'''Do you favor amending the Constitution of Maine to require a 2/3 vote of all the 
members of each House of the Legislature to alter the statutory tax rates for income 
tax, motor vehicle excise tax or sales tax except when adequate funds have not been 
appropriated for debt payment?'" 
Amend the resolution in Part B by striking out all of subsection 6 (page 2, lines 6 to 
lOin L.D.) and inserting the following: 
'6. Local limitation on homestead exemption. Subject to procedural conditions 
enacted by the Legislature, a municipality may, by majority vote at a referendum held 
expressly for the purpose, limit the amount of the genera] homestead exemption to the 
amount for which the reimbursement from the State represents 100% of the property tax 
loss attributable to the homestead exemption. A municipality may reverse the decision to 
limit the homestead exemption by a subsequent referendum.' 
Amend the resolution in Part B by striking out all of the question (page 2, lines 18 to 
in L.D.) and inserting the following: 
COMMITTEE AMENDMENT 
.... 
~. 
COMMITTEE AMENDMENT ';4 "to S.P. 648, L.D. 1819 
'''Do you favor amending the Constitution of Maine to allow municipalities to limit 
the amount of the general homestead exemption to the amount fully reimbursable by 
the State?'" 
Amend the resolution in Part C by striking out all of Section 3 (page 2, lines 35 to 39 
and page 3, lines 1 to 4 in L.D.) and inserting the following: 
'Section 3. Local vote to implement sales tax. A municipality may adopt a local 
sales tax subject to guidelines and procedures enacted by the Legislature. Revenue from 
a local sales tax must be used to reduce the property tax.' 
Amend the resolution in Part C by striking out all of the question (page 3, lines 12 to 
in L.D.) and inserting the following: 
'''Do you favor amending the Constitution of Maine to permit municipalities to 
provide property tax relief through adoption of a local sales tax subject to guidelines 
and procedures enacted by the Legislature?''' 
SUMMARY 
This amendment is the majority report of the Joint Standing Committee on Taxation. 
Like the constitutional resolution, this amendment proposes 3 changes to the 
Constitution of Maine and provides that each change must be presented as a separate and 
independent question to the voters. Under the amendment, which clarifies the language 
of the resolution: 
1. Part A requires approval of 2/3 of each House of the Legislature to alter the 
statutory tax rates for income tax, motor vehicle excise tax or sales tax except when 
adequate funds have not been appropriated for debt payment; 
2. Part B authorizes municipalities to opt out of the unreimbursed portion of the 
general homestead exemption by holding a municipal referendum subject to procedural 
conditions enacted by the Legislature and allows them to reverse that decision by a 
subsequent referendum; and 
3. Part C authorizes municipalities to adopt a local sales tax subject to guidelines and 
procedures enacted by the Legislature. Revenues must be used to reduce property taxes. 
FISCAL NOTE REQUIRED 
(See Attachedj 
COMMITTEE AMENDMENT 
Approved: 06/08/07 
~aC!. 
LD 1819 
LR 625(02) 
RESOLUTION, Proposing an Amendment to the Constitution of Maine To Restrict Tax Increases 
Referendum Costs 
Fiscal Note for Bill as Amended by Committee Amendment '',A " 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
Current biennium cost increase - General Fund 
MonthlY ear 
Election Type 
Question 
Nov-07 
General 
Referendum 
Length 
Standard 
The Secretary of State's budget includes sufficient funds to accommodate one ballot of average length for the general 
election in November. If the number or size ofthe referendum questions increases the ballot length, an additional 
appropriation of $8,000 or more may be required. 
LR0625(02) - Fiscal Note - Page 1 of I