An Act Regarding Property Tax Relief for Veterans
Maine Legislature, Session 129, LD 0163
Committee: Taxation
Sponsors: FARRIN, HANINGTON, CARSON, CYRWAY, POULIOT, MAREAN, SHEATS, STETKIS
Amends: 36 MRSA §653, 36 MRSA §653-A

Legislative Document
No. 163
S.P. 50
In Senate, January 17, 2019
An Act Regarding Property Tax Relief for Veterans
Reference to the Committee on Taxation suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator FARRIN of Somerset.
Cosponsored by Representative HANINGTON of Lincoln and
Senators: CARSON of Cumberland, CYRWAY of Kennebec, POULIOT of Kennebec, 
Representatives: MAREAN of Hollis, SHEATS of Auburn, STETKIS of Canaan.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §653, sub-§3 is enacted to read:
3.  No duplication of exemptions.  A person who receives an exemption under this 
section may not also receive an exemption under section 653-A.
Sec. 2.  36 MRSA §653-A is enacted to read:
§653-A.  Estates of veterans; enhanced exemptions
This section provides enhanced tax exemptions for the estates of certain veterans.  A 
veteran or a veteran's surviving spouse, minor child or parent who is eligible for an 
exemption under this section receives the exemption under this section as a substitute for 
an exemption under section 653.
1.  Veterans who served in combat zone.  For a veteran who served for 90 or more 
days in active service and who served in a combat zone as defined in Section 112(c)(2) of 
the Code, the exemption under this section is equal to the just value, up to $25,000, of 
property occupied as the veteran's homestead as defined in section 681, subsection 2.
2.  Disabled veterans; 50% to 90% disabled.  For veterans with a service-
connected disability rated by the United States Department of Defense as 50% to 90%, 
the exemption under this section is equal to the just value, up to $50,000, of property 
occupied as the veteran's homestead as defined in section 681, subsection 2.
3.  Disabled veterans; 100% disabled.  For veterans with a service-connected 
disability rated by the United States Department of Defense as 100%, the exemption 
under this section is equal to the just value, up to $100,000, of property occupied as the 
veteran's homestead as defined in section 681, subsection 2.
4.  Spouses, minor children and parents.  An unremarried surviving spouse, minor 
child or parent of a deceased veteran who receives a pension or compensation from the 
Federal Government as the spouse, minor child or parent of the veteran is eligible for an 
exemption under this section in the same amount as that for which the deceased veteran 
was eligible for property occupied as the spouse's, minor child's or parent's homestead as 
defined in section 681, subsection 2.
5.  Veteran; definition.  The word "veteran" as used in this section has the same 
meaning as under section 653, subsection 1, paragraph E.
6.  Residency required.  An exemption may not be granted under this section to a 
person who is not a resident of this State.
7.  Application.  Any person eligible for an exemption under this section shall apply 
in the same manner and subject to the same administrative requirements as under section 
653.
8.  Reimbursement to municipalities.  A municipality granting an exemption under 
this section is entitled to reimbursement from the State as provided under section 661 for 
the portion of the exemption under this section that exceeds the exemption applicable 
under section 653.
9.  Fraudulent conveyance.  Property conveyed to a person for the purpose of 
obtaining an exemption from taxation under this section may not be exempt, except 
property conveyed between spouses.  The obtaining of an exemption by means of 
fraudulent conveyance must be punished by a fine not less than $100 and not more than 2 
times the amount of the taxes evaded by the fraudulent conveyance, whichever amount is 
greater.
10.  No duplication of exemptions.  A person is not eligible for a property tax 
exemption under more than one subsection of this section.  A person who receives an 
exemption under this section may not also receive an exemption under section 653.
11.  Calculation of exemption.  In determining the local assessed value of an 
exemption under this section, 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 most recent annual return to the State Tax Assessor under section 383.
12.  Cooperative housing corporations.  A cooperative housing corporation may 
receive an exemption under this section to be applied against the valuation of property of 
the corporation that is occupied by a qualifying shareholder entitled to an exemption 
under this section calculated in the same manner and subject to the same conditions as 
under section 653, subsection 2.
13.  Effect of joint tenancy or revocable living trust.  The exemption provided in 
this section applies to the property of a veteran, including property held in joint tenancy 
with that veteran's spouse or held in a revocable living trust for the benefit of that veteran.
SUMMARY
This bill provides enhanced property tax exemptions for certain veterans.  A veteran 
regardless of age becomes eligible for a $25,000 exemption if the veteran has served at 
least 90 days of active service and has served in a combat zone.  A veteran with a service-
connected disability becomes eligible for a $50,000 exemption if the disability is rated 
50% to 90% and a $100,000 exemption if the disability is rated 100%.  A surviving 
unremarried spouse, minor child or parent who is receiving a pension based on the 
service of a deceased veteran qualifies for the same exemption the veteran would have 
been eligible for. A municipality is reimbursed for the constitutionally mandated 50% of 
the property tax revenue loss as a result of the enhanced exemption.