An Act To Increase State Reimbursement to Municipalities for Revenue Lost Due to the Homestead Property Tax Exemption
Maine Legislature, Session 130, LD 1448
Committee: Taxation
Sponsors: TALBOT ROSS
Amends: 36 MRSA §683, 36 MRSA §685

Legislative Document
No. 1448
H.P. 1064
House of Representatives, April 12, 2021
An Act To Increase State Reimbursement to Municipalities for 
Revenue Lost Due to the Homestead Property Tax Exemption
Received by the Clerk of the House on April 8, 2021.  Referred to the Committee on 
Taxation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative TALBOT ROSS of Portland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §683, as amended by PL 2019, c. 343, Pt. H, §§2 and 3, is further 
amended by enacting a new first paragraph to read:
The property tax assessed on a homestead eligible for an exemption under this section 
may not be less than $100.
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 and April 1, 2021, 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, 2022, 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 and April 1, 2021, 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, 2022, 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, 2022, 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 state reimbursement for the property tax revenue lost by a 
municipality due to the Maine resident homestead property tax exemption to 100% 
beginning with property tax years beginning on or after April 1, 2022.  This bill also 
specifies that the property tax assessed on a homestead eligible for the homestead 
exemption may not be less than $100.