An Act To Improve Access to Property Tax Exemptions for New o Homeowners
Maine Legislature, Session 129, LD 0560
Committee Amendment CA_A-HA_A_H194 (House)
Amends: 36 MRSA §683, 36 MRSA §685

HOUSE AMENDMENT .. 4 "to COMMITTEE AMENDMENT "N' to H.P. 404, 
L.D. 560, Bill, "An Act To Improve Access to Property Tax Exemptions for New 
o 
Homeowners" 
Amend the amendment by striking out all of section 3 and inserting the following: 
'Sec. 3. 36 MRSA §683, sub~§§3 and 4, as amended by PL 2017, c. 284, Pt. G, 
§ 1, are further amended to read: 
3. Effect on state valuation. For property tax years beginning before April 1, 2018, 
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 or after April 1, 2018, 62.5% of the just value of all the 
homestead exemptions under this subchapter must be included in the annual 
dete1mination of state valuation under sections 208 and 305. For property tax years 
beginning on or after April L 2020, 100% of the just value of all the homestead 
exemptions under this subchapter provided for the first year a homestead exemption is 
received under this subchapter must be included in the annual determination of state 
valuation under sections 208 and 305: after the first year, the percentage is 62.5% of the 
just value. 
4. Property tax 1·ate. For property tax years beginning before April 1, 2018, 50% of 
the just value of all the homestead exemptions under this subchapter must be included in 
the total municipal valuation used to detennine the municipal tax rate. For property tax 
years beginning on or after April 1, 2018, 62.5% of the just value of all the homestead 
exemptions under this subchapter must be included in the total municipal valuation used 
to detennine the municipal tax rate. For property tax years beginning on or after April 1, 
2020. 100% of the just value of all the homestead exemptions under this subchapter 
provided for the first year a homestead exemption is received under this subchapter must 
be included in the annual dete1mination of state valuation under sections 208 and 305; 
after the first year, the percentage is 62.5% of the just value. The municipal tax rate as 
finally determined may be applied to only the taxable po1tion of each homestead qualified 
for that tax year. 
Sec. 4. 36 MRSA §685, sub-§2, as amended by PL 2017, c, 284, Pt. G, §2, is 
further amended to read: 
HOUSE AMENDMENT 
~. ®' !. 
HOUSE AMENDMENT "A" to COMMITTEE AMENDMENT "A" to H.P. 404, L.D. 560 
2. Entitlement to reimbursement by the State; calculation. A municipality that 
has approved homestead exemptions under this subchapter may recover from the State: 
A. For property tax years beginning before April 1, 2018, 50% of the taxes lost by 
reason of the exemptions under section 683, subsections 1 and 1-B; ood 
B. ¥01' Except as provided in paragraph C, for property tax years beginning on or 
after April 1, 2018, 62.5% of the taxes lost by reason of the exemptions under section 
683, subsections 1 and 1-B~; and 
C. Notwithstanding paragraph B, for property tax years beginning on or after April 1, 
2020, 100% of the taxes lost by reason of the exemptions provided to permanent 
residents for the first year for which an exemption is received under this subchapter. 
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. 5. 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 allow homeowners who have not owned a homestead for 
the preceding 12 months to claim a homestead property tax exemption and to reimburse 
municipalities 100% of the lost property tax revenue for the first year for such 
homeowners. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2019-20 
$0 
$0 
2020-21 
$1,600,000 
$1,600,000 
Amend the amendment by relettering or renumbering any nonconsecutive Part letter 
or section number to read consecutively. 
SUMMARY 
Committee Amendment 
11A
allows permanent residents to participate in the 
homestead property tax exemption without having to wait a year. 
This amendment 
HOUSE AMENDMENT 
. ~,,,. 
HOUSE AMENDMENT "A "to COMMITTEE AMENDMENT "A" to RP. 404, L.D. 560 
increases the state reimbursement rate of property taxes lost due to such participation to 
100% for the first year; thereafter, the rate of state reimbursement returns to the current 
rate of 62.5%. 
FISCAL NOTE REQUIRED 
(See attached) 
SPONSORED BY: ')/7 µ;(._ {?"~-
(Representative GROH~SKI ) 
TOWN: Ellsw01th 
HOUSE AMENDMENT 
Approved: 04/29/19 feac 
LD560 
LR 2224(04) 
An Act To Improve Access to Property Tax Exemptions for New Homeowners 
Fiscal Note for House Amendment'~' to Committee Amendment "A" 
Sponsor: Rep. Grohoski of Ellsworth 
Net Cost (Savings) 
General Fund 
Appropriations/ Allocations 
General Fund 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2019-20 
FY2020-21 
$0 
$600,000 
$0 
$600,000 
Projections 
FY 2021-22 
$810,000 
$810,000 
P1·ojections 
FY 2022-23 
$840,000 
$840,000 
This amendment increases from 62.5% to 100% the reimbursement rate to municipalities for the lost property tax 
revenue for the first year from homeowners who have not owned a homestead for the preceding 12 months and claim 
a homestead exemption. The incremental impact (shown above) is to increase the General Fund appropriation in the 
committee amendment to the Department of Administrative and Financial Services by $600,000 in fiscal year 2020-
21, with a cumulative appropriation for the bill as amended of $1,600,000 in fiscal year 2020-21. 
LR2224(04) - Fiscal Note - Page 1 of 1