Maine Legislature, Session 123, LD 1602
Committee: Taxation
Sponsors: WOODBURY

Legislative Document 
No. 1602 
H.P.1124 
House of Representatives, March 21, 2007 
RESOLUTION, Proposing an Amendment to the Constitution of 
Maine To Reduce Homestead Property Taxes 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative WOODBURY of Yarmouth. 
Printed on nx:ycled paper 
/J1~/J7.~ 
MILLICENT M. MacFARLAND 
Clerk 
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. IX, §8, sub-§6 is enacted to read: 
6. Municipal homestead exemption. The Legislature may authorize municipalities 
to exempt from taxation a portion of the just value of real property that is the principal 
residence of the owner of the property. The exemption of a portion of just value under 
this subsection may not affect the determination of the equalized just value of taxable 
property in the municipality for any purpose. 
; 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 the Legislature to 
authorize municipalities to adopt a local homestead property tax exemption?" 
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 B 
Constitution, Art. IX, §8, sub-§6 is enacted to read: 
6. 
Municipal refunds of property taxes. The Legislature may authorize 
municipalities to refund a portion of the property taxes paid or forgive the payment of a 
portion of property taxes owed on property that is the principal residence of the claimant. 
The tax refund or forgiveness must be calculated to reflect the ability of the claimant to 
pay the tax. 
; 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 the Legislature to 
II 
authorize municipalities to refund a portion of the property taxes paid or forgive the 
payment of a portion of property taxes owed on a principal residence, with the tax 
refund or forgiveness based upon the resident's ability to pay?" 
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. IX, §8, sub-§6 is enacted to read: 
6. 
Property tax rate on secondary residential property. The Legislature may 
permit or require municipalities to apply a property tax rate to all or a portion of the value 
of secondary residential property that is higher than the property tax rate applied to all 
I 
other taxable property; however, the tax rate applied to secondary residential property 
may not exceed the higher of the rate applied to other taxable property in the taxing 
jurisdiction and the' statewide average rate applied to other taxable property. 
For 
purposes of this subsection, "secondary residential property" means property used as a 
residence by the owner that is not the owner's primary residence. The Legislature may 
adopt legislation to implement this subsection, including further definition of "secondary 
residential 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 
I 
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 the Legislature to permit 
or require municipalities to adopt a higher property tax rate on secondary residential 
property?" 
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 
ofthis 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 questions to 
the voters. 
Part A of this resolution proposes to amend the Constitution of Maine to allow the 
Legislature to authorize a local option homestead property tax exemption. 
Part B of this resolution proposes to amend the Constitution of Maine to allow the 
Legislature to authorize a local option property tax refund or tax forgiveness program 
based on a resident's ability to pay. 
Part C of this resolution proposes to amend the Constitution of Maine to allow the 
Legislature to permit or require municipalities to adopt a tax rate on secondary residential 
property that is higher than the rate on other property, provided that the rate on the 
secondary residential property does not exceed the statewide average rate applied to other 
taxable property.