An Act To Establish a Local Option Real Estate Transfer Tax
Maine Legislature, Session 127, LD 0029
Committee: Taxation
Sponsors: GOODE, LIBBY

Legislative Document 
No. 29 
H.P. 28 
House of Representatives, January 13, 2015 
An Act To Establish a Local Option Real Estate Transfer Tax 
Reference to the Committee on Taxation suggested and ordered printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative GOODE of Bangor. 
Cosponsored by Senator LIBBY of Androscoggin. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA c. 712-A is enacted to read: 
CHAPTER 712-A 
LOCAL OPTION REAL ESTATE TRANSFER TAX 
§4661.  Definitions 
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings.  Other terms have the same meanings as in chapter 711-A. 
1.  Eligible property.  "Eligible property" means real property subject to the tax 
imposed under chapter 711-A. 
2.  Local option real estate transfer tax.  "Local option real estate transfer tax" 
means the real estate transfer tax imposed by a participating municipality on eligible 
property pursuant to section 4662. 
3.  Participating municipality.  "Participating municipality" means a municipality 
that elects to impose a local option real estate transfer tax pursuant to section 4664. 
§4662.  Imposition and collection of local option real estate transfer tax 
A participating municipality may impose a local option real estate transfer tax on the 
transferor of eligible property of up to 1% of the value of the eligible property transferred.  
The local option real estate transfer tax must be collected in the same manner and at the 
same time as the tax collected pursuant to section 4641-B, subsection 1.  The tax imposed 
pursuant to this section is in addition to the real estate transfer tax imposed pursuant to 
section 4641-A. 
§4663.  Determination and payment of municipal share; administrative costs 
On the last day of each month, the register of deeds shall identify the amount of 
revenue under this chapter attributable to each participating municipality, based on the 
location of the properties being transferred and the amount of tax collected under section 
4662 for those properties, and certify the net amount due the municipality to the county 
treasurer.  The county treasurer shall, on or before the 10th day of each month, pay over 
to each municipality that municipality's share of the tax collected pursuant to this chapter 
for the previous month.  If the tax collected is not paid over by the 10th day of the month, 
the municipality may impose interest pursuant to section 186. 
§4664.  Referendum 
The question of whether to impose a local option real estate transfer tax and the 
amount of the tax must be submitted to the legal voters of a municipality that seeks to 
impose the local option real estate transfer tax. 
The petition process and the voting at elections must be held and conducted in 
accordance with Title 30-A, sections 2528, 2529 and 2532 even if the municipality has 
not accepted the provisions of section 2528.  The voting at elections held in 
municipalities must be held and conducted in accordance with Title 21-A.  The municipal 
clerk shall make a return of the results, certify the results and send them to the Secretary 
of State. The Secretary of State shall forward the results to the register of deeds for that 
municipality. 
The local option real estate transfer tax may be discontinued by referendum 
conducted in the same manner as the referendum adopting the tax under this section. 
A vote by a municipality to adopt or repeal a local option real estate transfer tax may 
not be held more often than once each year.  The municipality must notify the assessor 
and the register of deeds within 30 days of the outcome of any election. 
§4665.  Effective date of tax 
The local option real estate transfer tax authorized by this chapter takes effect 120 
days after the municipal referendum vote under section 4664 if it is accepted by a 
majority of the local voters voting at the election and the total number of votes cast equals 
or exceeds 20% of the total number of votes cast in that municipality in the most recent 
gubernatorial election. 
SUMMARY 
This bill allows a municipality, by referendum, to establish a local option real estate 
transfer tax of up to 1% on the transfer of real property that is subject to the state real 
estate transfer tax.