An Act To Increase the Homestead Exemption
Maine Legislature, Session 128, LD 0974
Committee Amendment CA_A_H563 (House)
Amends: 36 MRSA §683, 36 MRSA §685

COMMITTEE AMENDMENT ,.;!},, to H.P. 687, L.D. 974, Bill, "An Act To 
Increase the Homestead Exemption" 
Amend the bill by inserting after section 1 the following: 
'Sec. 2. 36 MRSA §683, sub-§§3 and 4, as amended by PL 2015, c. 390, §2, are 
further amended to read: 
3. Effect on state valuation. For property tax years beginning before April 1, 2017, 
50% of the just value of all the homestead exemptions under this subchapter must be 
included in the annual determination of state valuation under sections 208 and 305. For 
property tax years beginning on OF after April 1, 2017, 62.5% of the just value of all the 
homestead exemptions under this subchapter must be included in the annual 
determination of state valuation under sections 208 and 305. For property tax years 
beginning on or after April 1, 2018, 100% of the just value of all the homestead 
exemptions under this subchapter must be included in the annual determination of state 
valuation under sections 208 and 305. 
4. Property tax rate, For property tax years beginning before April 1, 2017, 50% 
of the just value of all the homestead exemptions under this sub chapter must be included 
in the total municipal valuation used to determine the municipal tax rate. For property tax 
years beginning on OF after April 1, 2017, 62.5% of the just value of all the homestead 
exemptions under this subchapter must be included in the total municipal valuation used 
to determine the municipal tax rate. For property tax years beginning on or after April 1, 
2018, 100% of the just value of all the homestead exemptions under this subchapter must 
be included in the total municipal valuation used to determine the municipal tax rate. The 
municipal tax rate as finally determined may be applied to only the taxable portion of 
each homestead qualified for that tax year. 
Sec. 3. 36 MRSA §685, sub-§2, as amended by PL 2015, c. 390, §§3 and 4, is 
further amended to read: 
2. Entitlement to reimbursement by the State; calculation. A municipality that 
has approved homestead exemptions under this subchapter may recover from the State: 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT~· to H.P. 687, L.D. 974 
A. For property tax years beginning before April 1, 2017, 50% of the taxes lost by 
reason of the exemptions under section 683, subsections 1 and 1-B; ffil4 
B. For property tax years beginning on or after April 1, 2017, 62.5% of the taxes lost 
by reason of the exemptions under section 683, subsections 1 and 1-B,; and 
C. For property tax years beginning on or after April 1, 2018, 100% of the taxes lost 
by reason of the exemptions under section 683, subsections 1 and 1-B. 
The municipality must provide proof in a form satisfactory to the bureau. The bureau 
shall reimburse the Unorganized Territory Education and Services Fund in the same 
manner for taxes lost by reason of the exemptions. 
Sec. 4. Appropriations and allocations. 
The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Homestead Property Tax Exemption Reimbursement 0886 
Initiative: Provides funding to increase the homestead property tax exemption to $30,000 
and provide for 100% reimbursement to municipalities for property tax years beginning 
April 1, 2018. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
SUMMARY 
2017-18 
$0 
$0 
2018-19 
$75,700,000 
$75,700,000 
This amendment adds provisions to the bill to increase state reimbursement for all 
homestead property tax exemptions from 62.5% to 100% for property tax years beginning 
on or after April 1, 2018 and provides funding for that reimbursement. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/04/17 :Wac 
LD974 
LR 2077(02) 
An Act To Increase the Homestead Exemption 
Fiscal Note for Bill as Amended by Committee Amendment ,f/n{frv5 t 3) 
Committee: Taxation 
Net Cost (Savings) 
General Fund 
Appropriations/ Allocations 
General Fund 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2017-18 
FY 2018-19 
Projections 
FY 2019-20 
Projections 
FY 2020-21 
$0 
$75,700,000 
$103,400,000 
$106,600,000 
$0 
$75,700,000 
$103,400,000 
$106,600,000 
This bill increases the homestead property tax exemption to $30,000 and provides for 100% reimbursement to 
municipalities for property tax years beginning April 1, 2018. The bill includes a General Fund appropriation of 
$75,700,000 to the Department of Administrative and Financial Services in fiscal year 2018-19 to reimburse 
municipalities. 
LR2077(02) - Fiscal Note - Page 1 of 1