An Act To Expand the Property Tax Exemption for Veterans Who Are 100% Disabled
Maine Legislature, Session 126, LD 1207
Committee: Taxation
Sponsors: CROCKETT, TUTTLE, BEAULIEU, DAVIS, MONAGHAN-DERRIG, PRIEST, VILLA, WILSON, BURNS
Amends: 36 MRSA §653

Legislative Document 
No. 1207 
H.P. 851 
House of Representatives, March 26, 2013 
An Act To Expand the Property Tax Exemption for Veterans Who 
Are 100% Disabled 
Reference to the Committee on Taxation suggested and ordered printed. 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative CROCKETT of Bethel. 
Cosponsored by Senator TUTTLE of York and 
Representatives: BEAULIEU of Auburn, DAVIS of Sangerville, DeCHANT of Bath, 
MONAGHAN-DERRIG of Cape Elizabeth, PRIEST of Brunswick, VILLA of Harrison, 
WILSON of Augusta, Senator: BURNS of Washington. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §653, sub-§1, ¶C, as amended by PL 2007, c. 240, Pt. PPPP, 
§1, is further amended to read: 
C.  The estates up to the just value of $6,000, having a taxable situs in the place of 
residence, of veterans who served in the Armed Forces of the United States: 
(1)  During any federally recognized war period, including the Korean Campaign, 
the Vietnam War, the Persian Gulf War and the periods from August 24, 1982 to 
July 31, 1984 and December 20, 1989 to January 31, 1990, or who were awarded 
the Armed Forces Expeditionary Medal, when they have reached the age of 62 
years or when they are receiving any form of pension or compensation from the 
United States Government for total disability, service-connected or nonservice-
connected, as a veteran.  A veteran of the Vietnam War must have served on 
active duty for a period of more than 180 days, any part of which occurred after 
February 27, 1961 and before May 8, 1975 unless the veteran died in service or 
was discharged for a service-connected disability after that date.  "Persian Gulf 
War" means service on active duty on or after August 2, 1990 and before or on 
the date that the United States Government recognizes as the end of that war 
period; or. 
(2)  Who are disabled by injury or disease incurred or aggravated during active 
military service in the line of duty and are receiving any form of pension or 
compensation from the United States Government for total, service-connected 
disability. 
The exemptions provided in this paragraph apply to the property of that veteran, 
including property held in joint tenancy with that veteran's spouse or held in a 
revocable living trust for the benefit of that veteran. 
Sec. 2.  36 MRSA §653, sub-§2, as enacted by PL 2007, c. 418, §1, is amended to 
read: 
2.  Cooperative housing corporations.  A cooperative housing corporation is 
entitled to an exemption under this section to be applied against the valuation of property 
of the corporation that is occupied by qualifying shareholders.  An application for 
exemption must include a list of all qualifying shareholders and any information required 
by the municipality to verify eligibility of qualifying shareholders and the applicable 
exemption amount.  The application must be updated annually to reflect changes in 
eligibility.  The exemption is equal to the total amount calculated under subsection 1 or 3 
as if the qualifying shareholders were owners of the property.  A cooperative housing 
corporation that receives an exemption pursuant to this section shall apportion the 
property tax reduction resulting from the exemption among the qualifying shareholders 
according to the proportion of the total exemption that each qualifying shareholder would 
be entitled to if the qualifying shareholder were the owner of the property.  Any 
supplemental assessment resulting from disqualification for exemption must be applied in 
the same manner against the qualifying shareholders for whom the disqualification 
applies.  For the purposes of this subsection, the following terms have the following 
meanings. 
A.  "Cooperative housing corporation" means an entity organized for the purpose of 
owning residential real estate in which residents own shares that entitle them to 
inhabit a designated space within a residential dwelling. 
B.  "Qualifying shareholder" means a person who is a shareholder in a cooperative 
housing corporation who would qualify for an exemption under subsection 1 or 3 if 
the person were the owner of the property. 
Sec. 3.  36 MRSA §653, sub-§3 is enacted to read: 
3.  Estates of veterans who are totally disabled.  The estate of a veteran who is 
disabled by injury or disease incurred or aggravated during active military service in the 
line of duty and is receiving any form of pension or compensation from the United States 
Government for total, service-connected disability is exempt from taxation. The 
following provisions apply regarding the exemption provided in this subsection. 
A.  As used in this subsection, “veteran” means a person who was in active service in 
the Armed Forces of the United States and who, if discharged, retired or separated 
from the Armed Forces, was discharged, retired or separated under other than 
dishonorable conditions. 
B.  The exemption provided by this subsection is in lieu of any exemption under 
subsection 1 to which a veteran may be eligible and applies to the property of that 
veteran, including property held in a revocable living trust for the benefit of that 
veteran. 
C.  An exemption may not be granted to a person under this subsection unless the 
person is a resident of this State. 
D.  A person who desires to secure exemption under this subsection shall make 
written application and file written proof of entitlement on or before the first day of 
April in the year in which the exemption is first requested with the assessor of the 
place in which the person resides.  The assessor shall thereafter grant the exemption 
to the person who is so qualified and remains a resident of that place or until the 
assessor is notified of the reason or desire for discontinuance. 
E.  A municipality granting an exemption under this subsection is entitled to 
reimbursement from the State of 90% of that portion of the property tax revenue lost 
as a result of the exemptions that exceeds 3% of the total municipal property tax levy, 
upon submission of proof in a form satisfactory to the State Tax Assessor.  An 
exemption granted under this subsection that is reimbursable pursuant to section 661 
is not eligible for reimbursement under this paragraph. 
F.  Property conveyed to a person for the purpose of obtaining an exemption from 
taxation under this subsection is not exempt, except property conveyed between 
spouses.  A person who obtains an exemption by means of fraudulent conveyance is 
subject to a fine of not less than $100 and not more than 2 times the amount of the 
taxes evaded by the fraudulent conveyance, whichever amount is greater. 
Sec. 4.  Application.  This Act applies to property tax years beginning on or after 
April 1, 2014. 
Sec. 5.  Effective date.  This Act takes effect April 1, 2014. 
SUMMARY 
Current law provides a tax exemption of up to $6,000 of the value of property held by 
a veteran who is receiving any form of pension or compensation from the United States 
Government for total, service-connected disability.  This bill provides a complete 
exemption from property taxes for the estate of a veteran who is receiving any form of 
pension or compensation from the United States Government for total, service-connected 
disability.  The same provisions that apply to the current property tax exemptions for 
veterans apply to the exemption established in this bill, including requiring the veteran to 
be a resident of this State, allowing the exemption for property held in a revocable living 
trust or that is cooperative housing and requiring the State to reimburse a municipality for 
90% of the portion of the lost property tax revenue that exceeds 3% of the total municipal 
property tax levy.