An Act To Provide Direct Property Tax Relief to Homeowners by Increasing the Homestead Exemption
Maine Legislature, Session 129, LD 1172
Committee: Taxation
Sponsors: LIBBY, GIDEON, CHIPMAN, DOW, JACKSON, POULIOT, DILLINGHAM
Amends: 36 MRSA §683

Legislative Document
No. 1172
S.P. 358
In Senate, March 12, 2019
An Act To Provide Direct Property Tax Relief to Homeowners by 
Increasing the Homestead Exemption
Reference to the Committee on Taxation suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator LIBBY of Androscoggin.
Cosponsored by Speaker GIDEON of Freeport and
Senators: CHIPMAN of Cumberland, DOW of Lincoln, President JACKSON of Aroostook, 
POULIOT of Kennebec, Representative: DILLINGHAM of Oxford.
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 
repealed and the following enacted in its place:
1-B.  Additional exemption.  A homestead eligible for an exemption under 
subsection 1 is eligible for an additional exemption of the just value of the homestead in 
the following amounts:
A.  For the property tax year beginning on April 1, 2016, $5,000;
B.  For property tax years beginning on April 1, 2017, April 1, 2018 and April 1, 
2019, $10,000;
C.  For the property tax year beginning on April 1, 2020, $20,000; and
D.  For property tax years beginning on or after April 1, 2021, $30,000.
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, 75% 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, 75% 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.
SUMMARY
This bill increases the total exemption amount under the Maine resident homestead 
property tax exemption program from the current $20,000 to $30,000 for the property tax 
year beginning April 1, 2020 and to $40,000 for property tax years beginning on or after 
April 1, 2021.  This bill also increases the reimbursement rate by the State for the revenue 
lost by a municipality due to the exemption from 62.5% to 75%, beginning with the 
2020-2021 property tax year.