An Act To Provide Property Tax Relief
Maine Legislature, Session 129, LD 1158
Committee: Taxation
Sponsors: TALBOT ROSS, JACKSON, SANBORN, ALLEY, BRENNAN, CLOUTIER, DENK, MAREAN, MATLACK, TERRY, TIPPING
Amends: 36 MRSA §5219-K, 36 MRSA §5403

Legislative Document
No. 1158
H.P. 847
House of Representatives, March 7, 2019
An Act To Provide Property Tax Relief
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative TALBOT ROSS of Portland.
Cosponsored by President JACKSON of Aroostook, Senator SANBORN, H. of Cumberland 
and Representatives: ALLEY of Beals, BRENNAN of Portland, CLOUTIER of Lewiston, 
DENK of Kennebunk, MAREAN of Hollis, MATLACK of St. George, TERRY of Gorham, 
TIPPING of Orono.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §5219-KK, sub-§1, ¶A-1, as enacted by PL 2017, c. 474, Pt. 
B, §13, is amended to read:
A-1.  For tax years beginning on or after January 1, 2018 and before January 1, 2020, 
"benefit base" means property taxes paid by a resident individual during the tax year 
on the resident individual's homestead in this State or rent constituting property taxes 
paid by the resident individual during the tax year on a homestead in the State not 
exceeding the following amounts:
(1)  For persons filing as single individuals, $2,050;
(2)  For persons filing as heads of households that can claim the federal child tax 
credit pursuant to the Code, Section 24 for no more than one qualifying child or 
dependent or for persons filing joint returns, $2,650; and
(3)  For persons filing as heads of households that can claim the federal child tax 
credit pursuant to the Code, Section 24 for more than one qualifying child or 
dependent or for persons filing joint returns that can claim the federal child tax 
credit pursuant to the Code, Section 24 for at least one qualifying child or 
dependent, $3,250.
Sec. 2.  36 MRSA §5219-KK, sub-§1, ¶A-2 is enacted to read:
A-2.  For tax years beginning on or after January 1, 2020, "benefit base" means 
property taxes paid by a resident individual during the tax year on the resident 
individual's homestead in this State or rent constituting property taxes paid by the 
resident individual during the tax year on a homestead in the State not exceeding the 
following amounts:
(1)  For persons filing as single individuals, $3,350; and
(2)  For persons filing married joint returns or as heads of households, $4,400.
Sec. 3.  36 MRSA §5219-KK, sub-§1, ¶¶C-1 and C-2 are enacted to read:
C-1.  "Household" means an individual filing a return under this Part, the individual's 
spouse and members of the household for whom the individual is entitled to claim a 
credit for a qualifying child or dependent under the Code, Section 24.
C-2.  "Household income" means all income received by all persons of a household 
in a calendar year while members of the household.
Sec. 4.  36 MRSA §5219-KK, sub-§1, ¶E, as enacted by PL 2013, c. 551, §3, is 
amended to read:
E.  "Rent constituting property taxes" means 15% of the gross rent actually paid in 
cash or its equivalent during the tax year solely for the right of occupancy of a 
homestead in the State except that, for tax years beginning on or after January 1, 
2020, "rent constituting property taxes" means 20% of the gross rent actually paid in 
cash or its equivalent during the tax year solely for the right of occupancy of a 
homestead in the State for resident individuals under 65 years of age as of the last day 
of the taxable year or 25% of the gross rent actually paid in cash or its equivalent 
during the tax year solely for the right of occupancy of a homestead in the State for 
resident individuals 65 years of age and older as of the last day of the taxable year.  
For the purposes of this paragraph, "gross rent" means rent paid at arm's length solely 
for the right of occupancy of a homestead, exclusive of charges for any utilities, 
services, furniture, furnishings or personal property appliances furnished by the 
landlord as part of the rental agreement, whether or not expressly set out in the rental 
agreement. If the landlord and tenant have not dealt with each other at arm's length, 
and the assessor is satisfied that the gross rent charged was excessive, the assessor 
may adjust the gross rent to a reasonable amount for purposes of this section.
Sec. 5.  36 MRSA §5219-KK, sub-§2-A, as enacted by PL 2017, c. 474, Pt. B, 
§16, is amended to read:
2-A.  Credit in 2018 and 2019.  For tax years beginning on or after January 1, 2018 
and before January 1, 2020, a resident individual is allowed a credit against the taxes 
imposed under this Part equal to the amount by which the benefit base for the resident 
individual exceeds 6% of the resident individual's income. The credit may not exceed 
$750 for resident individuals under 65 years of age as of the last day of the taxable year 
or $1,200 for resident individuals 65 years of age and older as of the last day of the 
taxable year. In the case of married individuals filing a joint return, only one spouse is 
required to be 65 years of age or older to qualify for the $1,200 credit limitation. Married 
taxpayers filing separate returns do not qualify for the credit under this section.
Sec. 6.  36 MRSA §5219-KK, sub-§2-B is enacted to read:
2-B.  Credit in 2020 and after.  For tax years beginning on or after January 1, 2020, 
a resident individual is allowed a credit against the taxes imposed under this Part in an 
amount equal to 50% of the amount by which the benefit base for the resident individual 
exceeds 4% but does not exceed 8% of income plus 100% of that portion of the benefit 
base that exceeds 8% of income to a maximum payment of $2,000.  Married taxpayers 
filing separate returns do not qualify for the credit under this section.
Sec. 7.  36 MRSA §5219-KK, sub-§4 is enacted to read:
4.  Income limitation.  For tax years beginning on or after January 1, 2020, a person 
filing as a single individual with a household income in excess of $60,000 and a person 
filing a married joint return or as a head of household with a household income in excess 
of $80,000 do not qualify for a credit under this section.
Sec. 8.  36 MRSA §5403, sub-§6, as amended by PL 2017, c. 474, Pt. B, §23, is 
repealed and the following enacted in its place:
6.  Property tax fairness credit.  For the property tax fairness credit:
A.  Beginning in 2018 and each year thereafter, the benefit base amounts in section 
5219-KK, subsection 1, paragraph A-1, except that for the purposes of this paragraph, 
notwithstanding section 5402, subsection 1-B, the "cost-of-living adjustment" is the 
Chained Consumer Price Index for the 12-month period ending June 30th of the 
preceding calendar year divided by the Chained Consumer Price Index for the 
12-month period ending June 30, 2017;
B.  Beginning in 2020 and each year thereafter, the benefit base amounts in section 
5219-KK, subsection 1, paragraph A-2, except that for the purposes of this paragraph, 
notwithstanding section 5402, subsection 1-B, the "cost-of-living adjustment" is the 
Chained Consumer Price Index for the 12-month period ending June 30th of the 
preceding calendar year divided by the Chained Consumer Price Index for the 
12-month period ending June 30, 2019; and
C.  Beginning in 2020 and each year thereafter, the household income amounts in 
section 5219-KK, subsection 4, except that for the purposes of this paragraph, 
notwithstanding section 5402, subsection 1-B, the "cost-of-living adjustment" is the 
Chained Consumer Price Index for the 12-month period ending June 30th of the 
preceding calendar year divided by the Chained Consumer Price Index for the 
12-month period ending June 30, 2019;
SUMMARY
This bill amends the property tax fairness credit under the income tax laws for tax 
years beginning on or after January 1, 2020 by changing the formula for calculation of 
benefits to reflect the calculation that applied under the Maine Residents Property Tax 
Program, referred to as "the circuitbreaker program," which was in effect prior to 
enactment of the property tax fairness credit.