An Act To Provide Sensible Options for Tax Increment Financing Proceeds in Small Towns
Maine Legislature, Session 124, LD 0493
Sponsors: MARTIN
Amends: 30-A MRSA §5225

Legislative Document 
No. 493 
S.P.192 
In Senate, February 12,2009 
An Act To Provide Sensible Options for Tax Increment Financing 
Proceeds in Small Towns 
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Reference to the Committee on Taxation sugge~ted and ordered printed. 
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Presented by S~nator ROSEN of Hancock. 
Cosponsored by Representative MARTIN of Eagle Lake. 
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Printed on recycled paper 
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JoYJ. O'BRIEN 
Secretary of the Senate 
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Be it enacted by the People ofthe State of Maine as follows: 
Sec. 1. 30-A MRSA §5225, sub-§l, ~C, as amended by PL 2007, c. 413, §6, is 
further amended to read: 
C. 
Costs related to econoIIl1c: development, environmental improvements or 
employment training within the municipality, including, but not limited to: 
(1) Costs of funding economic development prograE1lS OF events devdoped by 
the municipality or.fundirig the marketing of the municipality as a,;ibusiness' or 
arts location; 
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(2) Costs of funding enviroDm.eI!lJ1llmli iimrEJjl:J!@Jvemrr.em1l ])lIC:JJie~ts: deve:l!O]Y.e<dl fuJ)f 1ilffie 
mu.ndtciJpality for cOJil!lmerciaill CDr amt!s diimic1!: l!l!Se <D"J[ FelIate.d! to. sucllli actiivittiies; 
(3)FWlding to. establlEslln. p~entecOEiomii~dtewdQJll'1iIii:eJru11.revollV!iiIlJJg,E(!}3iJj] :ffurnrd!s; 
or investment funds:; 
(4) Costs of services to provide. skills development and training for residents of 
the municipality. These costs may not exceed 20% of the total proj ectcosts and 
must be designated as training funds in the deVelopment program; and 
(5) Quality child care costs, including fmance costs and construction, staffmg, 
training, certification and accreditation costs related to child care; aHEl 
Sec. 2-. 30-A MRSA §5225, sub-§l, 11[.0, as enacted by PL 2001, c.669, §1, is 
amended to read: 
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D. 
Costs of constructing or improving facilities or buildings used by State 
Government that are located in approved downtown tax increment financing 
districts.,.; and 
Sec. 3. 30-A MRSA' §5225, sub-§l,,:E is enacted to read: 
E. For municipalities acting individually, or a group of municipalities acting jointly 
under section 5236, with a population of 1,500 or fewer persons on the last Federal 
Decennial Census, costs of constructing or improving municipal and regional 
facilities to provide governmental services or for other purposes authorized under this 
subsection either-inside or outside of the district. 
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.. Sec. 4 .. 30-AMRSA §5236 is enacted to read: 
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§5236; Joint municipality options 
Two or more municipalities may participate jointly in a tax increment financing 
district by entering into a tax base sharing agreement under chapter 223, subchapter 5, 
and, consistent with that agreement, may file jointly for designationofa tax mcrement 
fmancing district under this chapter and otherwise jointly assurrie' the authority and 
obligations of a municipality acting individually. 
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SUMMARY 
This bill clarifies the procedure for municipalities to jointly participate in a tax 
increment fmancing district and permits municipalities with a population of fewer than 
1,500 persons singly or jointly to include certain regional and municipal improvements in 
project costs. 
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