An Act To Reduce the Property Tax Burden and Improve the Circuitbreaker Program
Maine Legislature, Session 125, LD 0474
Committee: Taxation
Sponsors: FLEMINGS, ALFOND, BERRY, CAIN, DILL, HAYES, KNIGHT, ROTUNDO, STUCKEY
Amends: 36 MRSA §6201, 36 MRSA §6203-A, 36 MRSA §6204, 36 MRSA §6207, 36 MRSA §6210

Legislative Document 
No. 474 
H.P. 367 
House of Representatives, February 10, 2011 
An Act To Reduce the Property Tax Burden and Improve the 
Circuitbreaker Program 
(EMERGENCY) 
Reference to the Committee on Taxation suggested and ordered printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative FLEMINGS of Bar Harbor. 
Cosponsored by Senator ALFOND of Cumberland and 
Representatives: BERRY of Bowdoinham, CAIN of Orono, DILL of Cape Elizabeth, HAYES 
of Buckfield, KNIGHT of Livermore Falls, MacDONALD of Boothbay, ROTUNDO of 
Lewiston, STUCKEY of Portland. 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, the application period for the Circuitbreaker Program begins on August 
1st; and 
Whereas, it is necessary for administrative efficiency and to avoid confusion that 
changes be made to the Circuitbreaker Program by the beginning of the application 
period; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §6201, sub-§5, as amended by PL 1995, c. 368, Pt. CCC, §7 
and affected by §11, is further amended to read: 
5.  Homestead.  "Homestead" means the dwelling owned or rented by the claimant or 
held in a revocable living trust for the benefit of the claimant and occupied by the 
claimant and the claimant's dependents as a home, and may consist of a part of a 
multidwelling or multipurpose building and a part of the land, up to 10 acres, upon which 
it is built.  "Owned" includes a vendee in possession under a land contract and of one or 
more joint tenants or tenants in common. 
Sec. 2.  36 MRSA §6201, sub-§7, as enacted by PL 1987, c. 516, §§3 and 6, is 
amended to read: 
7.  Household income. "Household income" means all income received by all 
persons of a household in a calendar year while members of the household, excluding the 
income of members of the household for whom the claimant under this chapter is entitled 
to claim an exemption as a dependent under Part 8 for the year for which relief is 
requested. 
Sec. 3.  36 MRSA §6201, sub-§9, as repealed and replaced by PL 2007, c. 438, 
§113, is amended to read: 
9.  Income.  "Income" means Maine adjusted gross income determined in accordance 
with Part 8, modified as provided by this subsection. 
A.  Maine adjusted gross income must be increased by the following amounts, to the 
extent not included in Maine adjusted gross income: 
(1)  Contributions, including catch-up contributions, to any pension, annuity or 
retirement plan, including contributions to an individual retirement account under 
Section 408 of the Code, a simplified employee pension plan, a salary reduction 
simplified employee pension plan, a savings incentive match plan for employees 
plan and a deferred compensation plan under Section 457 of the Code and cash or 
deferred arrangements under Section 401 of the Code and qualified, or "Keogh," 
accounts; 
(2) Nontaxable contributions to a flexible spending arrangement under Section 
of the Code; 
(3) Amounts excluded from gross income under Section 129 of the Code; 
(4) Distributions from a ROTH IRA; 
(5) Capital gains; 
(6) The absolute value of the amount of trade or business loss, net operating loss 
carry-over, capital loss, rental loss, farm loss, partnership or S Corporation loss 
included in Maine adjusted gross income; 
(7) Inheritance; 
(8) Life insurance proceeds paid on death of an insured; 
(9) Nontaxable lawsuit rewards resulting from lawsuits for actions such as 
slander, libel and pain and suffering, excluding reimbursements such as medical 
and legal expenses associated with the case; 
(10) Support money; 
(11) Nontaxable strike benefits; 
(12) The gross amount of any pension or annuity, including railroad retirement 
benefits; 
(13) All payments received under the federal Social Security Act and state 
unemployment insurance laws; 
(14) Veterans' disability pensions; 
(15) Nontaxable interest received from the Federal Government or any of its 
agencies or instrumentalities; 
(16) Interest or dividends on obligations or securities of this State and its political 
subdivisions and authorities; 
(17) Workers' compensation and the gross amount of "loss of time" insurance; 
and 
(18) Cash public assistance and relief, but not including relief granted under this 
chapter.; and 
(19)  The total nontaxable portion of the following items of income, determined 
as if a federal income tax return were required, but only if the total of all of the 
following income items exceeds $5,000: 
(a)  Jury duty payments; 
(b)  Awards; 
(c)  Lawsuit awards resulting from lawsuits for actions such as slander, libel 
and pain and suffering, excluding reimbursements such as medical and legal 
expenses associated with the case; 
(d)  Strike benefits; and 
(e)  Life insurance proceeds paid on death of an insured. 
B.  Maine adjusted gross income must be decreased by the following amounts, to the 
extent included in Maine adjusted gross income: 
(1) The first $5,000 of proceeds from a life insurance policy, whether paid in a 
lump sum or in the form of an annuity; 
(2) A rollover from an individual retirement account, pension or annuity fund or 
plan to an individual retirement account, pension or annuity fund or plan; 
(3) Gifts from nongovernmental sources; and 
(4) Surplus foods or other relief in kind supplied by a governmental agency. 
Sec. 4.  36 MRSA §6203-A, as amended by PL 2009, c. 213, Pt. S, §14 and 
affected by §16, is repealed and the following enacted in its place: 
§6203-A.  Procedure for reimbursement 
1.  Application period beginning August 1, 2011.  For the application period 
beginning August 1, 2011, at least monthly on or before the last day of the month, the 
State Tax Assessor shall determine the benefit for each claimant under this chapter and 
certify the amount to the State Controller to be transferred to the so-called circuit breaker 
reserve established, maintained and administered by the State Controller from General 
Fund undedicated revenue.  At least monthly, the assessor shall pay the certified amounts 
to each approved applicant qualifying for the benefit under this chapter.  Interest may not 
be allowed on any payment made to a claimant pursuant to this chapter. 
2.  Application periods beginning on or after January 1, 2012.  For application 
periods beginning on or after January 1, 2012, the State Tax Assessor shall determine the 
benefit for each claimant under this chapter and certify the amount to the State Controller 
at any time after June 30th, but no later than July 15th, to be transferred to the so-called 
circuit breaker reserve established, maintained and administered by the State Controller 
from General Fund undedicated revenue.  No later than August 1st, the assessor shall pay 
the certified amounts to each approved applicant qualifying for the benefit under this 
chapter.  Interest may not be allowed on any payment made to a claimant pursuant to this 
chapter. 
Sec. 5.  36 MRSA §6204, as amended by PL 2005, c. 2, Pt. E, §3 and affected by 
§§7 and 8, is repealed and the following enacted in its place: 
§6204.  Filing date 
1.  Application period beginning August 1, 2011.  For the application period 
beginning August 1, 2011, a claim may not be paid unless the claim is filed with the 
bureau on or after August 1, 2011 and on or before December 31, 2011. 
2.  Application periods beginning on or after January 1, 2012.  For application 
periods beginning on or after January 1, 2012, a claim may not be paid unless the claim is 
filed with the bureau on or after January 1st and on or before the following April 15th. 
Sec. 6.  36 MRSA §6207, sub-§1, ¶A-1, as amended by PL 2009, c. 213, Pt. 
XXX, §1, is further amended to read: 
A-1.  Fifty percent of that portion of the benefit base that exceeds 4% but does not 
exceed 8% of income plus 100% of that portion of the benefit base that exceeds 8% 
of income to a maximum payment of $2,000; and calculated according to tables 
established by the State Tax Assessor. 
(1)  Tables established by the assessor must be based on the benefit formula set 
forth in this subsection and include benefit base brackets in increments of $100 
and household income brackets in increments of $1,000. 
(2)  The maximum benefit under this subsection is limited to $2,400. 
Sec. 7.  36 MRSA §6207, sub-§1, ¶B, as enacted by PL 2009, c. 213, Pt. XXX, 
§2, is repealed. 
Sec. 8.  36 MRSA §6210, last ¶, as amended by PL 2005, c. 218, §59, is further 
amended to read: 
The assessor shall include a checkoff to request an the application form and 
instructions for the Maine Residents Property Tax Program on with the individual income 
tax form.  The assessor shall also provide for individuals to apply through the Department 
of Health and Human Services' integrated eligibility system as they apply or recertify for 
other programs administered by that department.  The assessor shall also provide a 
paperless option for filing an application for the Maine Residents Property Tax Program. 
Sec. 9.  Report.  By January 15, 2014, the State Tax Assessor shall submit a report 
to the joint standing committee of the Legislature having jurisdiction over taxation 
matters providing information comparing the annual cost of the Maine Residents Property 
Tax Program in years from 2005 to 2013, including the number of applicants for benefits 
under the Maine Residents Property Tax Program and the average benefits provided, and 
providing projections for the same information for 2014 to 2017.  The report must 
identify the extent of increased participation in and benefit cost of the Maine Residents 
Property Tax Program as the result of coordination of the program with the income tax.  
The committee may submit legislation related to the report to the Second Regular Session 
of the 126th Legislature. 
Sec. 10.  Application.  Unless otherwise specified and except for that section of 
this Act that amends the Maine Revised Statutes, Title 36, section 6210, this Act applies 
to applications filed with respect to program application periods of the Maine Residents 
Property Tax Program beginning on or after August 1, 2011.  That section of this Act that 
amends Title 36, section 6210 applies to applications filed on or after January 1, 2012. 
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
This bill simplifies the Maine Residents Property Tax Program, also referred to as 
"the Circuitbreaker Program," by simplifying the determination of eligibility, 
transitioning the application period to the income tax filing period and permitting 
application to be made through the Department of Health and Human Services' integrated 
eligibility system.  The bill requires the State Tax Assessor to report to the joint standing 
committee of the Legislature having jurisdiction over taxation matters by January 15, 
2014 on the impact of the changes made by this bill.