An Act To Increase the Homestead Property Tax Exemption to $50,000 for Persons 75 Years of Age and Older
Maine Legislature, Session 129, LD 0077
Committee: Taxation
Sponsors: O'CONNOR, INGWERSEN, GRIGNON, HEAD, ORDWAY
Amends: 36 MRSA §683, 36 MRSA §684, 36 MRSA §685

Legislative Document
No. 77
H.P. 63
House of Representatives, January 15, 2019
An Act To Increase the Homestead Property Tax Exemption to 
$50,000 for Persons 75 Years of Age and Older
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative O'CONNOR of Berwick.
Cosponsored by Representative INGWERSEN of Arundel and
Representatives: GRIGNON of Athens, HEAD of Bethel, ORDWAY of Standish.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §683, sub-§1, as amended by PL 2017, c. 478, §1, is further 
amended to read:
1.  Exemption amount before 2020.  Except For property tax years beginning before 
April 1, 2020, except for assessments for special benefits, the just value of $10,000 of the 
homestead of a permanent resident of this State who has owned a homestead in this State 
for the preceding 12 months is exempt from taxation.  Notwithstanding this subsection, a 
permanent resident of this State who loses ownership of a homestead in this State due to a 
tax lien foreclosure and subsequently regains ownership of the homestead from the 
municipality that foreclosed on the tax lien is deemed to have continuously owned the 
homestead and may not be determined ineligible for the exemption provided in this 
section due to the ownership of the homestead by the municipality.  In determining the 
local assessed value of the exemption, the assessor shall multiply the amount of the 
exemption by the ratio of current just value upon which the assessment is based as 
furnished in the assessor's annual return pursuant to section 383.  If the title to the 
homestead is held by the applicant jointly or in common with others, the exemption may 
not exceed $10,000 of the just value of the homestead, but may be apportioned among the 
owners who reside on the property to the extent of their respective interests.  A 
municipality responsible for administering the homestead exemption has no obligation to 
create separate accounts for each partial interest in a homestead owned jointly or in 
common.
Sec. 2.  36 MRSA §683, sub-§1-B, as enacted by PL 2015, c. 267, Pt. J, §1, is 
amended to read:
1-B.  Additional exemption before 2020.  A For property tax years beginning before 
April 1, 2020, 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.
Sec. 3.  36 MRSA §683, sub-§1-C is enacted to read:
1-C.  Exemption amount beginning in 2020.  For property tax years beginning on 
or after April 1, 2020, except for assessments for special benefits, the just value of 
$20,000 of the homestead of a permanent resident of this State who has owned a 
homestead in this State for the preceding 12 months is exempt from taxation, except that 
the homestead of at least one permanent resident of the State who is at least 75 years of 
age or older is eligible for an exemption of the just value of $50,000 except for 
assessments for special benefits.  Notwithstanding this subsection, a permanent resident 
of this State who loses ownership of a homestead in this State due to a tax lien 
foreclosure and subsequently regains ownership of the homestead from the municipality 
that foreclosed on the tax lien is deemed to have continuously owned the homestead and 
may not be determined ineligible for the exemption provided in this section due to the 
ownership of the homestead by the municipality.  In determining the local assessed value 
of the exemption, the assessor shall multiply the amount of the exemption by the ratio of 
current just value upon which the assessment is based as furnished in the assessor's 
annual return pursuant to section 383. If the title to the homestead is held by the applicant 
jointly or in common with others, the exemption may not exceed the allowable amount of 
the just value of the homestead, but may be apportioned among the owners who reside on 
the property to the extent of their respective interests. A municipality responsible for 
administering the homestead exemption has no obligation to create separate accounts for 
each partial interest in a homestead owned jointly or in common.
Sec. 4.  36 MRSA §683, sub-§5, as amended by PL 2015, c. 267, Pt. J, §3, is 
further amended to read:
5.  Determination of exemption for cooperative housing corporation.  A 
cooperative housing corporation may apply for an exemption under this subchapter to be 
applied against the valuation of property of the corporation that is occupied by qualifying 
shareholders.  The application must include a list of all qualifying shareholders and must 
be updated annually to reflect changes in the ownership and residency of qualifying 
shareholders.  The exemption is equal to the amounts specified in subsections 1 and 1-B 
or subsection 1-C multiplied by the number of units in the cooperative property occupied 
by qualifying shareholders.  A cooperative housing corporation that receives an 
exemption pursuant to this section shall apportion the property tax reduction resulting 
from the exemption among the qualifying shareholders on a per unit basis.  Any 
supplemental assessment resulting from disqualification for exemption must be applied in 
the same manner against the qualifying shareholders for whom the disqualification 
applies.
Sec. 5.  36 MRSA §684, sub-§1, as amended by PL 2007, c. 438, §21, is further 
amended to read:
1.  Generally.  The bureau shall furnish to the assessor of each municipality a 
sufficient number of printed forms to be filed by applicants for an exemption under this 
subchapter and shall determine the content of the forms.  A municipality shall provide to 
its inhabitants reasonable notice of the availability of application forms.  An individual 
claiming an exemption under this subchapter for the first time shall file the application 
form with the assessor or the assessor's representative.  An individual claiming the 
increased exemption based on age under section 683, subsection 1-C shall file a 
notification verifying the individual’s age with the assessor or the assessor's 
representative.  The application or age verification must be filed on or before April 1st of 
the year on which the taxes are based.
Sec. 6.  36 MRSA §685, sub-§2, ¶B, as amended by PL 2017, c. 284, Pt. G, §2, is 
further amended to read:
B.  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 or subsection 
1-C.
SUMMARY
This bill increases the property tax exemption for individuals who are 75 years of age 
or older from $20,000 to $50,000 for property tax years beginning on or after April 1, 
2020.