An Act To Provide Relief for Significant Reductions in Municipal Property Fiscal Capacity
Maine Legislature, Session 127, LD 1699
Committee: Education and Cultural Affairs
Sponsors: WHITTEMORE, McCABE
Amends: 20-A MRSA §15672, 36 MRSA §208-B

Legislative Document 
No. 1699 
S.P. 705 
In Senate, April 13, 2016 
An Act To Provide Relief for Significant Reductions in Municipal 
Property Fiscal Capacity 
(EMERGENCY) 
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
printed. 
HEATHER J.R. PRIEST 
Secretary of the Senate 
Presented by Senator WHITTEMORE of Somerset.  (GOVERNOR'S BILL) 
Cosponsored by Representative McCABE of Skowhegan. 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, recent events have had an adverse effect on the operations of paper mills 
across the State; and 
Whereas, school administrative units need to pass budgets for the 2016-2017 
academic year prior to the start of the 128th Legislature; and 
Whereas, the Legislature must take immediate action to prevent massive budget 
cuts or significantly increased property taxes in affected communities; 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.  20-A MRSA §15672, sub-§23, ¶¶B and C, as enacted by PL 2013, c. 
203, §1, are amended to read: 
B.  For fiscal year 2014-15, the average of the certified state valuations for the 2 most 
recent years prior to the most recently certified state valuation; and 
C.  For Except as provided in paragraph D, for fiscal year 2015-16 and each 
subsequent fiscal year, the average of the certified state valuations for the 3 most 
recent years prior to the most recently certified state valuation.; and 
Sec. 2.  20-A MRSA §15672, sub-§23, ¶D is enacted to read: 
D.  Beginning in fiscal year 2016-17, if a municipality's most recently certified state 
valuation is less than the property fiscal capacity under paragraph C, the average of 
the most recently certified state valuation for that municipality and the property fiscal 
capacity under paragraph C, as long as the State Tax Assessor has certified to the 
commissioner that the municipality's state valuation meets the conditions specified in 
Title 36, section 208-B. 
Sec. 3.  36 MRSA §208-B is enacted to read: 
§208-B.  Decline in state certified valuation 
Beginning with the 2016 state valuation, if a municipality's most recently certified 
state valuation declines in an amount that is greater than 4.5% from the next most 
recently certified state valuation and that decline is due to the loss in value attributable to 
a single taxpayer, the State Tax Assessor shall certify to the Commissioner of Education 
that the municipality's certified state valuation qualifies under Title 20-A, section 15672, 
subsection 23, paragraph D. 
Sec. 4.  Maintenance of mill rate for fiscal year 2016-17.  The Commissioner 
of Education shall identify savings resulting from unused debt service in order to 
maintain the mill rate expectation of 8.30 for fiscal year 2016-17 as established in Public 
Law 2015, chapter 389, Part C, section 11, pursuant to the Maine Revised Statutes, Title 
20-A, section 15671-A. 
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
This bill changes the determination for property fiscal capacity as used to determine 
the amount of state aid a school administrative unit receives under the school funding 
formula if a municipality has experienced a decline in state valuation of at least 4.5% 
attributable to one taxpayer.  Under this bill, the State Tax Assessor is required to certify 
to the Commissioner of Education when a municipality's state valuation has declined by 
at least 4.5% from the previous year's certified state valuation and the decline is due to 
the loss in value attributable to a single taxpayer.  When those conditions have been met, 
the property fiscal capacity for that municipality is the average of the most recently 
certified state valuation and the certified state valuations for the 3 years prior to the most 
recently certified year. 
This bill requires the Commissioner of Education to identify savings from unused 
debt service in order to maintain the mill rate expectation of 8.30 for fiscal year 2016-17.