An Act To Expand the Value of the Homestead Exemption to $25,000 and State Reimbursement to 100 Percent of Lost Property Tax Revenue
Maine Legislature, Session 129, LD 1234
Committee: Taxation
Sponsors: AUSTIN, LIBBY, DODGE, HARNETT, HEPLER, LANDRY, MADIGAN, RISEMAN, SKOLFIELD, STANLEY
Amends: 36 MRSA §683, 36 MRSA §685

Legislative Document
No. 1234
H.P. 895
House of Representatives, March 14, 2019
An Act To Expand the Value of the Homestead Exemption to 
$25,000 and State Reimbursement to 100 Percent of Lost Property 
Tax Revenue
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative AUSTIN of Skowhegan.
Cosponsored by Senator LIBBY of Androscoggin and
Representatives: DODGE of Belfast, HARNETT of Gardiner, HEPLER of Woolwich, 
LANDRY of Farmington, MADIGAN of Waterville, RISEMAN of Harrison, SKOLFIELD of 
Weld, STANLEY of Medway.
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, April 1, 
2018 and April 1, 2019 and $15,000 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 April 1, 2019, 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 April 1, 2019, 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 §683, as amended by PL 2017, c. 478, §1, is further amended by 
adding at the end a new paragraph to read:
The property tax assessed on a homestead eligible for an exemption under this section 
may not be less than $100.
Sec. 4.  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 April 1, 2019, 
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 for property tax years beginning April 1, 2020 the value of the 
homestead exemption benefit under the Maine resident homestead property tax 
exemption from $20,000 to $25,000 and increases the state reimbursement for the lost 
property tax revenue from 62.5% to 100%.  The bill also provides that the property tax 
assessed on a homestead eligible for the homestead exemption may not be less than $100.