An Act to Increase the Personal Property Tax Exemption for Farm Machmery
Maine Legislature, Session 131, LD 1258
Committee Amendment CA_A_H215 (House)

COMJVIITTEE AMENDMENT 'A " to H P 806, L D 125 8, "An Act to Increase the 
Personal Property Tax Exemption for Farm Machmery'' 
Amend the bill m sect10n 1 m paragraph M by sti 1kmg out all of subparagraph (3) (page 
1, Imes 25 to 28 m L D ) and msertmg the followmg 
'(3) A mumc1pahty that experiences a loss m property tax revenue attnbutable to 
the mcrease m the exempt10n hm1tat1on ovei $10,000 on or after Apnl 1, 2024 1s 
entitled to reimbursement 111 the manner provided m section 661 for 5 0% of the 
additional property tax revenue loss 
( 4) The bureau shall rennburse mumctpahttes and the Unorgamzed Temtory 
Education and Services Fund m the manner provided m Title 30-A, sect10n 5685 
for state-mandated costs attnbutable to the 111crease 111 the exemption under this 
paragraph from $10,000 to $45,000 begmnmg April 1, 2024 
(5) Machme.ty that 1s eligible for the busmess eqmpment tax exemptton under 
subchapter 4-C or for reimbursement under the Bus111ess Eqmpment Tax 
Rennbursement program under chapter 915 ts not ehg1ble for the exemption 
provided under this paragraph,' 
Amend the bill by 111sertmg after sect10n 1 the follow111g 
'Sec. 2. Appropriations and allocations. The followmg appropriations and 
allocations are made 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Revenue Services, Bureau of 0002 
Imttative Provides fundmg for state-mandated costs associated with an mcreased property 
tax exemptton for farm mach111ery begmmng April 1, 2024 
GENERAL FUND 
All Other 
2023-24 
$0 
COMMITTEE AMENDMENT 
2024-25 
$3,750 
ROS 
COMMITTEE AMENDMENT ::,4-" to HP 806, L D 1258 
GENERAL FUND TOTAL 
$0 
$3,750 
Amend the bill by relettermg or renumbermg any nonconsecutive Part letter or section 
number to read consecutively 
SUMMARY 
This amendment changes from 100% to 50% the amount of state reimbursement to 
mmntcipahttes for the loss of revenue resultmg from the increase of the property tax 
exemption under the bill, provides that state-mandated costs attubutable to the bill must be 
reimbursed at 90% and provides that farm equipment for which the bill increases the 
property tax exemption is not ehg1ble for the exemption under the bill 1f the property 1s 
ehg1ble for the business eqmpment tax exemption or for reimbursement under the Business 
Equipment Tax Rennbursement, or BETR, program. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
\ 
I 
Approved 04/30/23 /IYaC!-
LD 1258 
LR 1789(02) 
An Act to Increase the Personal Property Tax Exemption for Farm Machinery 
Fiscal Note for Bill as Jmended by Committee Amendment _'.t' /H _ -;;._JJ 
Committee: Taxation 
lt!_ 
Fiscal Note Required: Yes 
Fiscal Note 
State Mandate - Funded 
FY 2023-24 
Projections 
FY 2025-26 
Projections 
FY 2026-27 
Net Cost (Savings) 
General Fund 
$0 
$3,750 
$153,750 
$153,750 
\ 
I 
s ( ppropriations/ Allocations 
Geneial Fund 
State Mandates 
Required Activity 
$0 
$3,750 
Requires mumcipahties to undertake administrative activities to nnplement an 
increase m the personal property tax exempt10n for fam1 machmeiy, mcludmg 
annual processing and verifymg of applications 
$153,750 
$153,750 
Unit Affected 
Local Cost 
Mumc1pahty 
4167 annually 
= 100% 
The required local activities m this bill may represent a state mandate pmsuant to the Const1tut10n of Mame If the 
bill does require a local umt of government to expand or modify its activities so as to necessitate additional 
expenditures from local revenue, the state mandate provts1ons of the Constitution of Mame require e1the1 (1) Gene1al 
Fund appropriations be provided to fund at least 90% of any additional necessitated local costs of the mandate, or (2) 
a Mandate Preamble be added to the bill and two-thirds of the members of each House vote to exempt the mandate 
from the funding requirement If the bill does represent a state mandate and neither one of these actlons occurs, the 
local umts of government will not be required to unplement the mandated act1v1tles 
Fiscal Detail and Notes 
Thts bill increases the property tax exempt10n for farm machinery begmnmg April 1, 2024 and requires the State to 
reimburse mumcipahties for 90% of the state-mandated costs and 50% of the property tax revenue loss due to the 
increased exempt10n The bill mcludes an ongomg General Fund appiopnat1on of $3,750 pei year begmnmg m fiscal 
year 2024-25 to reimburse mumcipahttes for 90% of the estimated $4,167 m state-mandated costs Begmmng m 
fiscal year 2025-26, an additional ongomg app10pnat1011 of $150,000 per yea1 will be required to reimbm se 
mumc1paht1es for 50% of the property tax revenue loss 
LR1789(02) - Fiscal Note - Page 1 of 1