An Act To Exempt Disabled Veterans from Property Taxes in Accordance with Their Disability Ratings
Maine Legislature, Session 129, LD 1042
Committee: Taxation
Sponsors: ROBERTS-LOVELL, BERRY, DENK, FECTEAU, HANINGTON, HICKMAN, MAXMIN, SCHNECK, SHEATS
Amends: 36 MRSA §683, 36 MRSA §685

Legislative Document
No. 1042
H.P. 772
House of Representatives, February 28, 2019
An Act To Exempt Disabled Veterans from Property Taxes in 
Accordance with Their Disability Ratings
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative ROBERTS-LOVELL of South Berwick.
Cosponsored by Representatives: BERRY of Bowdoinham, DENK of Kennebunk, FECTEAU 
of Biddeford, HANINGTON of Lincoln, HICKMAN of Winthrop, MAXMIN of Nobleboro, 
SCHNECK of Bangor, SHEATS of Auburn.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §683, sub-§1-C is enacted to read:
1-C.  Disabled veterans.  For property tax years beginning on or after April 1, 2020, 
a permanent resident of this State who is a veteran with a service-connected disability 
rated by the United States Department of Veterans Affairs at 30% or greater and who is 
eligible for an exemption under subsection 1 may elect to receive an exemption from 
taxation for a homestead equal to 50% of the just value of the homestead multiplied by 
the veteran's percentage disability rating.  A veteran who elects to receive an exemption 
under this subsection is not eligible for the exemptions provided under subsections 1 and 
1-B or the exemptions provided under sections 653 and 654-A.
Sec. 2.  36 MRSA §683, sub-§2, as amended by PL 2013, c. 416, §3, is further 
amended to read:
2.  Exemption in addition to other exemptions.  The Except as provided in 
subsection 1-C, the exemption provided in this subchapter is in addition to the 
exemptions provided in sections 653 and 654-A.
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, 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, 75% of the taxes lost 
by reason of the exemption under section 683, subsection 1-C.
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 permits a veteran with a service-connected disability rated by the United 
States Department of Veterans Affairs at 30% or greater to choose to receive a homestead 
exemption equal to 50% of the just value of the homestead multiplied by the veteran's 
percentage disability rating instead of the current homestead exemption and exemptions 
for veterans and legally blind persons.  The bill requires the State to reimburse 
municipalities for 75% of the revenue loss attributable to the new exemption.