Maine Legislature, Session 123, LD 1819
Committee: Taxation
Sponsors: STRIMLING, HOTHAM, NASS, PERRY, CHASE, KNIGHT, LANSLEY, PILON

Legislative Document 
No. 1819 
S.P.648 
RESOLUTION, Proposing an Amendment to the Constitution of 
Maine To Restrict Tax Increases 
April 3, 2007 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Senator STRIMLING of Cumberland. 
JOY 1. O'BRIEN 
Secretary of the Senate 
Cosponsored by Representative HOTHAM of Dixfield and Senators: NASS of York, PERRY 
of Penobscot, Representatives: CHASE of Wells, KNIGHT of Livermore Falls, LANSLEY of 
Sabattus, PILON of Sa co, PlOTT! of Unity. 
Printed on recycled paper 
I 
Constitutional amendment. Resolved: 
Two thirds of each branch of the 
Legislature concurring, that the following amendment to the Constitution of Maine be 
proposed: 
PART A 
Constitution, Art. IV, Pt. Third, §24 is enacted to read: 
Section 24. Alteration of certain tax rates. After the effective date of this section: 
1. Income tax, motor vehicle excise tax and sales tax. Except as provided in 
subsection 2, the effective rate of any lcome tax, motor vehicle excise tax mill rate or the 
general sales tax rate 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 
2. Exception; debt payment. Tu the extent necessary to make up for General Fund 
revenues set apart by the Treasurer of State to pay interest and principal on bonded debt 
as provided under Article V, Part Third, Section 5, the Legislature may increase the rate 
of a tax without application of subsection 1. 
; 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 this Part of the 
amendment proposed in this Part by voting upon the following question: 
"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 tax rate for income taxes, 
motor vehicle excise tax mill rates or general sales tax rates except when inadequate 
funds have been appropriated for debt payment?" 
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 this 
Part of the amendment, the Governor shall proclaim that fact without delay and this Part 
of 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. 
PARTB 
Page I - 123LR062S(01)-1 
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. Local limitation on homestead exemption. A municipality may, by majority 
vote at a referendum held expressly for the purpose, limit the amount of the 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. 
; 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 this Part of the 
amendment proposed in this Part by voting upon the following question: 
"Do you favor amending the Constitution of Maine to allow municipalities to limit 
the amount of the homestead exemption to the amount for which the reimbursement 
from the State represents 100% of the property tax loss?" 
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 this 
Part of the amendment, the Governor shall proclaim that fact without delay and this Part 
of 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. 
PART C 
Constitution, Art. VIII, Pt. Second, §3 is enacted to read: 
Section 3. Local vote to increase mill rate or implement sales tax. A municipality 
may increase the local property tax mill rate based on 100% valuation or implement a 
sales tax at the municipal level only if 2/3 of the municipal legislative body votes to 
increase the mill rate or to implement the local sales tax. For purposes of this section, 
"municipal legislative body" means the town meeting in a town, the city council in a city 
I 
or that part of a municipal government that exercises legislative powers under a law or 
charter. If a sales tax at the municipal level is authorized by a 2/3 vote as required in this 
section, the revenue generated by the sales tax must be used to provide property tax or 
excise tax relief in the municipality. 
; 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 this Part of the 
amendment proposed in this Part by voting upon the following question: 
"Do you favor amending the Constitution of Maine to require a 2/3 vote of a 
municipal legislative body to increase the local property tax mill rate or implement a 
14' 
sales tax at the municipal level, the revenues from which must provide property or 
excise tax relief?" 
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 this 
Part of the amendment, the Governor shall proclaim that fact without delay and this Part 
of 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 constitutional resolution 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. 
Part A requires approval of 2/3 of each House of the Legislature to alter the tax rate 
for income taxes, motor vehicle excise tax mill rates or general sales tax rates except 
when inadequate funds have been appropriated for debt payment. 
Part B authorizes municipalities to opt out of the unreimbursed portion of the 
homestead exemption by holding a municipal referendum and would allow them to 
reverse that decision by a subsequent referendum. 
Part C requires a 2/3 vote of a municipal legislative body to increase the local 
property tax mill rate or implement a sales tax at the municipal level and further requires 
that if a local sales tax is authorized, it must provide property or excise tax relief.