An Act To Provide Property Tax Relief to Maine Residents
Maine Legislature, Session 126, LD 1751
Committee: Taxation
Sponsors: EVES, ALFOND, BEAVERS, CASSIDY, CHIPMAN, GATTINE, GRANT, HUBBELL, KUSIAK, PLANTE, POWERS, SAUCIER, SCHNECK, SHORT, WERTS, DUTREMBLE, GRATWICK, WOODBURY
Amends: 5 MRSA §1518-A, 5 MRSA §1518-B, 5 MRSA §1536, 36 MRSA §5219-I

Legislative Document 
No. 1751 
H.P. 1257 
House of Representatives, January 28, 2014 
An Act To Provide Property Tax Relief to Maine Residents 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Reference to the Committee on Taxation suggested and ordered printed. 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Speaker EVES of North Berwick. 
Cosponsored by President ALFOND of Cumberland and 
Representatives: BEAVERS of South Berwick, CASSIDY of Lubec, CHIPMAN of Portland, 
GATTINE of Westbrook, GRANT of Gardiner, HUBBELL of Bar Harbor, KUSIAK of 
Fairfield, McCABE of Skowhegan, McLEAN of Gorham, PLANTE of Berwick, POWERS of 
Naples, SAUCIER of Presque Isle, SCHNECK of Bangor, SHORT of Pittsfield, WERTS of 
Auburn, Senators: DUTREMBLE of York, GRATWICK of Penobscot, WOODBURY of 
Cumberland. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  5 MRSA §1518-A, sub-§§1-A and 4, as enacted by PL 2011, c. 692, §1, 
are amended to read: 
1-A.  Implementation.  By September 1, 2014 and annually thereafter, if the State 
Controller determines that the benefits required under the Circuitbreaker Program 
property tax fairness credit under Title 36, chapter 907 have section 5219-II has been 
fully funded, the State Controller shall inform the State Tax Assessor of the amount 
available in the fund for the purposes of subsection 1. 
A.  By November 1st annually, the State Tax Assessor shall calculate the amount by 
which the income tax rates under Title 36, section 5111, subsections 1-C, 2-C and 
3-C may be reduced during the subsequent tax year using the amount available from 
the fund. Bracket rate reductions must be a minimum of 0.2 percentage points in the 
first year in which reductions are made and a minimum of 0.1 percentage points in 
subsequent years. If sufficient funds are not available to pay for the minimum 
reduction, a rate reduction may not be made until the amount in the fund is sufficient 
to pay for the reduction. When the amount is sufficient to pay for the reduction, the 
reduction must first be applied equally to each bracket under Title 36, section 5111, 
subsections 1-C, 2-C and 3-C until the lower bracket reaches 4%. Funds available 
from the fund in subsequent years must be applied to reduce the higher bracket rates 
until there is a single bracket with a rate of 4%, after which future tax relief may be 
identified. 
B.  The State Tax Assessor shall provide public notice of new bracket rates calculated 
under this subsection by November 15th annually. 
C.  New bracket rates calculated under this subsection apply beginning with tax years 
that begin on or after January 1st of the calendar year following the determinations 
made under this subsection. 
4.  Transfer from General Fund revenue growth.  Beginning with At the close of 
fiscal year 2013-14 and before any other transfers from the General Fund, the State 
Controller shall transfer to the fund at the close of each fiscal year 40% of the amount by 
which General Fund budgeted revenue for that fiscal year exceeds the General Fund 
appropriation limitation calculated for that fiscal year under section 1534.  Beginning 
with fiscal year 2014-15, at the close of each fiscal year and before any other transfers 
from the General Fund, the State Controller shall transfer to the fund 20% of the amount 
by which General Fund budgeted revenue for that fiscal year exceeds the General Fund 
appropriation limitation calculated for that fiscal year under section 1534. 
Sec. 2.  5 MRSA §1518-B is enacted to read: 
§1518-B.  Property Tax Fairness Fund 
1.  Property Tax Fairness Fund.  There is created the Property Tax Fairness Fund, 
referred to in this section as "the fund," which must be used to provide property tax relief 
to residents of the State through the property tax fairness credit under Title 36, section 
1519-II.  The fund consists of all resources transferred to the fund under subsection 5 and 
section 1536 and other resources made available to the fund.  The fund must be used to 
increase the amount of the property tax fairness credit pursuant to subsection 2. 
2.  Implementation.  By September 1, 2014 and annually thereafter, the State 
Controller shall inform the State Tax Assessor of the amount available in the fund for the 
purposes of subsection 1. 
A.  By November 1st annually, the State Tax Assessor shall calculate the amount by 
which the property tax fairness credit under Title 36, section 5219-II, subsection 2 
may be increased during the subsequent income tax year using the amount available 
from the fund. Notwithstanding the maximum credit specified in Title 36, section 
5219-II, subsection 2 of $300 for resident individuals under 70 years of age as of the 
last day of the taxable year and $400 for resident individuals 70 years of age and 
older as of the last day of the taxable year, the maximum credit must be increased in 
equal amounts for those resident individuals under 70 years of age and those resident 
individuals 70 years of age and older. 
B.  The State Tax Assessor shall provide public notice of the new maximum credit 
amounts available under the property tax fairness credit calculated under paragraph A 
by November 15th annually. 
C.  New maximum credit amounts calculated under paragraph A apply beginning 
with income tax years that begin on or after January 1st of the calendar year 
following the determinations made under this subsection. 
3.  Nonlapsing fund.  Any unexpended balance in the fund may not lapse but must 
be carried forward to be used pursuant to subsection 2. 
4.  Transfer for property tax fairness credit increase.  In the fiscal years 
immediately following the calculation of the property tax fairness credit increase under 
subsection 2, paragraph A, the State Tax Assessor shall certify to the State Controller the 
amount of the reduction in General Fund revenue by fiscal year, and the State Controller 
shall transfer from the fund the amount certified for the reduction in revenue attributable 
to adjustments made under subsection 2 to the General Fund unappropriated surplus. 
5.  Transfer from General Fund revenue growth.  Beginning with fiscal year 
2014-15, at the close of each fiscal year and before any other transfers from the General 
Fund, the State Controller shall transfer to the fund 20% of the amount by which General 
Fund budgeted revenue for that fiscal year exceeds the General Fund appropriation 
limitation calculated for that fiscal year under section 1534. 
Sec. 3.  5 MRSA §1536, sub-§1, ¶E, as amended by PL 2011, c. 692, §2 and 
affected by §3, is further amended to read: 
E.  Ten percent to the Capital Construction and Improvements Reserve Fund 
established in section 1516-A; and 
F.  Twenty Ten percent to the Tax Relief Fund for Maine Residents established in 
section 1518-A.; and 
Sec. 4.  5 MRSA §1536, sub-§1, ¶G is enacted to read: 
G.  Ten percent to the Property Tax Fairness Fund established in section 1518-B. 
Sec. 5.  36 MRSA §5219-II, sub-§2, as enacted by PL 2013, c. 368, Pt. L, §1, is 
amended to read: 
2.  Credit.  A resident individual filing a single or married separate return or resident 
spouses filing joint returns with Maine adjusted gross income up to $40,000 are allowed a 
credit against the taxes imposed under this Part in an amount equal to 40% of the amount 
by which the benefit base exceeds 10% of the resident individual's or the resident 
spouses' total Maine adjusted gross income as defined under section 5102, subsection 
1-C, paragraph A that is greater than zero.  The Except as increased pursuant to Title 5, 
section 1518-B, the credit may not exceed $300 for resident individuals under 70 years of 
age as of the last day of the taxable year and $400 for resident individuals 70 years of age 
and older as of the last day of the taxable year.  In the case of married individuals filing a 
joint return, only one spouse is required to be 70 years of age and older to qualify for the 
$400 credit limitation.  In the case of resident married individuals filing separate returns, 
each of whom claim the credit on the same homestead, the credit for each spouse may not 
exceed $150 50% of the maximum credit for resident individuals under 70 years of age if, 
for the taxable year, neither spouse was a resident individual 70 years of age or older or 
$200 50% of the maximum credit for resident individuals 70 years of age and older if, for 
the taxable year, at least one spouse was 70 years of age or older. 
SUMMARY 
This bill creates the Property Tax Fairness Fund to create a mechanism for increasing 
the cap on the tax credit available to low-income and senior citizens under the property 
tax fairness credit.  Currently, the cap on the credit is $300 for eligible residents under 70 
years of age and $400 for eligible residents 70 years of age and older. 
This bill requires 10% of the unappropriated General Fund surplus after all required 
deductions of appropriations, budgeted financial commitments and adjustments 
considered necessary by the State Controller have been made and 20% of the amount by 
which General Fund budgeted revenue for that fiscal year exceeds the General Fund 
appropriation limitation calculated for that fiscal year to be transferred to the Property 
Tax Fairness Fund; these amounts are attained by decreasing the amount of the 
unappropriated surplus transferred to the Tax Relief Fund for Maine Residents from 20% 
to 10% and the amount of the excess General Fund budgeted revenue from 40% to 20%. 
Annually, the State Controller is required to notify the State Tax Assessor of the 
amount available in the Property Tax Fairness Fund.  Based on that amount, the State Tax 
Assessor is required to increase the maximum credit available under the property tax 
fairness credit in equal amounts for those low-income residents under 70 years of age and 
years of age and older.  The higher caps apply to the income tax year immediately 
following the increase.