An Act To Reduce Property Taxes for Maine Residents
Maine Legislature, Session 129, LD 0164
Committee: Taxation
Sponsors: POULIOT, PIERCE, LIBBY, BICKFORD, DOORE, MADIGAN
Amends: 36 MRSA §683, 36 MRSA §685

Legislative Document
No. 164
S.P. 51
In Senate, January 17, 2019
An Act To Reduce Property Taxes for Maine Residents
Reference to the Committee on Taxation suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator POULIOT of Kennebec.
Cosponsored by Representative PIERCE of Falmouth and
Senator: LIBBY of Androscoggin, Representatives: BICKFORD of Auburn, DOORE of 
Augusta, MADIGAN of Waterville.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §683, sub-§1-B, as enacted by PL 2015, c. 267, Pt. J, §1, is 
amended to read:
1-B.  Additional exemption.  A homestead eligible for an exemption under 
subsection 1 is eligible for an additional exemption of $5,000 of the just value of the 
homestead for property tax years beginning on April 1, 2016 and of, $10,000 of the just 
value of the homestead for property tax years beginning on or after April 1, 2017 and 
$40,000 of the just value of the homestead for property tax years beginning on or after 
April 1, 2020.
Sec. 2.  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 and before April 1, 2020, 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, 2020, 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, 2018, 50% 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 and before April 1, 2020, 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, 2020, 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 2017, c. 284, Pt. G, §2, 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:
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; and
B.  For property tax years beginning on or after April 1, 2018 and before April 1, 
2020, 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, 2020, 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.
SUMMARY
This bill increases the total exemption under the Maine resident homestead property 
tax exemption program to $50,000 for property tax years beginning on or after April 1, 
2020.  This bill also increases state reimbursement to municipalities for homestead 
property tax exemptions from 62.5% to 100% for property tax years beginning on or after 
April 1, 2020.