An Act To Amend the Property Tax Fairness Credit
Maine Legislature, Session 127, LD 0076
Committee Amendment CA_A_S202 (Senate)
Amends: 36 MRSA §5219-K

COMMITTEE AMENDMENT" f\ "to S.P. 24, L.D. 76, Bill, "An Act To Amend 
the Property Tax Fairness Credit" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
' 
'Sec. 1. 36 MRSA §5219-KK, sub-§I,~, as enacted by PL 2013, c. 551, §3, is 
amended to read: 
E. "Rent constituting property taxes" means ~ 
20% of the gross rent actually paid 
in cash or its equivalent during the tax year solely for the right of occupancy of a 
homestead in the State. For the purposes of this paragraph, "gross rent" means rent 
paid at ann's length solely for the right of occupancy of a homestead, exclusive of 
charges for any utilities; services, furniture, furnishings or personal property 
appliances furnished by the landlord as part of the rental agreement, whether or not 
expressly set out in the rental agreement. If the landlord and tenant have not dealt 
with each other at ann's length, and the assessor is satisfied that the gross rent 
charged was excessive, the assessor may adjust the gross rent to a reasonable amount 
for purposes of this section. 
Sec. 2. 36 MRSA §5219-KK, sub-§2, as enacted by PL 2013, c. 551, §3, is 
amended to read: 
2. Credit. A resident individual is allowed a credit against the taxes imposed under 
this Part in an amount equal to 50% of the amount by which the benefit base for the 
resident individual exceeds 6% 5% of the resident individual's income. The credit may 
not exceed $600 for resident individuals under 65 years of age as of the last day of the 
taxable year or $900 for resident individuals 65 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 65 years of age or older to qualify for the $900 credit limitation. 
In the case of resident married individuals filing separate returns, each of whom claims 
the credit on the same homestead, the credit for each spouse may not exceed $300 if, for 
the taxable year, neither spouse was a resident individual 65 years of age or older or $450 
if, for the taxable year, at least one spouse was 65 years of age or older.' 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A "to S.P. 24, L.D. 76 
SUMMARY 
This amendment replaces the bill and amends the property tax fairness credit by 
increasing the percentage of rent constituting property taxes from 15% to 20% and 
lowering the property tax as a percentage of the income threshold above which a credit 
may be available from 6% of income to 5% of income. 
FISCAL NOTE REQUIRED 
(See attached) 
. 
COMMITTEE AMENDMENT 
Net Cost (Savings) 
General Fund 
Revenue 
General Fund 
Approved: 05127115 
frac. 
LD76 
LR 407(02) 
An Act To Amend the Property Tax Fairness Credit 
Fiscal Note for Bill as Amended by Committee Amendment Iff{S-Wij 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2015-16 
FY 2016-17 
Projections 
FY 2017-18 
Projections 
FY 2018-19 
$10,640,000 
$11,305,000 
$11,875,000 
$11,875,000 
($10,640,000) 
($11,305,000) 
($11,875,000) 
($11,875,000) 
Other Special Revenue Funds 
($560,000) 
($595,000) 
($625,000) 
($625,000) 
Fiscal Detail and Notes 
This bill makes changes to the property tax fairness credit resulting in a reduction in General Fund revenue of 
$10,640,000 in fiscal year 2015-16 and $11,305,000 in 2016-17 and a reduction in Local Government Fund revenue 
of $560,000 in fiscal year 2015-16 and $595,000 in 2016-17. This analysis assumes the changes are effective for tax 
years beginning on or after 1-1-15. 
LR0407(02) - Fiscal Note - Page 1 of 1