An Act To Reduce Property Taxes for Maine Residents
Maine Legislature, Session 130, LD 1071
Committee: Taxation
Sponsors: POULIOT
Amends: 36 MRSA §683, 36 MRSA §685

Legislative Document
No. 1071
S.P. 339
In Senate, March 11, 2021
An Act To Reduce Property Taxes for Maine Residents
Reference to the Committee on Taxation suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator POULIOT of Kennebec.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §683, sub-§1-B, as amended by PL 2019, c. 343, Pt. H, §2, is 
further amended to read:
1-B.  Additional exemption.  A homestead eligible for an exemption under subsection 
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, $10,000 of the just value of the homestead 
for property tax years beginning on 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 and $40,000 of the just value of the homestead for property tax years 
beginning on or after April 1, 2021.
Sec. 2.  36 MRSA §683, sub-§3, as amended by PL 2019, c. 343, Pt. H, §3, is 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 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, 70% 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, 2021, 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.
Sec. 3.  36 MRSA §683, sub-§4, as amended by PL 2019, c. 343, Pt. H, §3, is further 
amended to read:
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 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, 70% 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, 2021, 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. 4.  36 MRSA §685, sub-§2, as amended by PL 2019, c. 343, Pt. H, §4, 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;
B.  For property tax years beginning on 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, 70% of the taxes lost by 
reason of the exemptions under section 683, subsections 1 and 1‑B.; and
D.  For property tax years beginning on or after April 1, 2021, 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 the total exemption under the Maine resident homestead property 
tax exemption program to $50,000 for property tax years beginning on or after April 1, 
2021. This bill also increases state reimbursement to municipalities for homestead property 
tax exemptions from 70% to 100% for property tax years beginning on or after April 1, 
2021.