An Act to Provide Property Tax Relief by Increasing the Availability of the Property Tax Fairness Credit
Maine Legislature, Session 131, LD 2144
Committee Amendment CA_A_H839 (House)
Amends: 36 MRSA §5219-K, 36 MRSA §5403

COMMITTEE AMENDMENT " f\» to H.P. 1368, L.D. 2144, "An Act to Provide
Property Tax Relief by Increasing the Availability of the Property Tax Fairness Credit"
Amend the bill by striking out the title and substituting the following;
'An Act to Provide Property Tax Relief by Increasing the Availability of the Property
Tax Fairness Credit for Resident Individuals Who Are 65 Years of Age or Older with
Annual Income at or Below $36,000'
Amend the bill by striking out everything after the enacting clause and inserting the
following:
'See. 1. 36 MRSA §5219-KK, sub-§2-D, as amended by PL 2023, c, 412, Pt. S,
§4, is further amended to read;
2-D. Credit in 2022 and after. For tax years beginning on or after January 1, 2022,
a resident individual is allowed a credit agamst the taxes imposed under this Part equal to
the amount by which the benefit base for the resident individual exceeds 4% of the resident
individual's income, except that, for tax years beginning on or after January 1. 2024. a
resident individual who is 65 years of age or older with an annual income at or below
$36.000 is allowed a credit against the taxes imposed under this Part equal to the amount
by which the benefit base for the residentindiyidyal exceeds 3% of the resident individual's
annual income. The credit may not exceed $1,000 for resident individuals under 65 years
of age as of the last day of the taxable year or, for tax years beginning before January 1,
2024, $1,500 for resident individuals 65 years of age and older as of the last day of the
taxable year. For tax years beginning on or after January 1, 2024, for resident individuals
65 years of age and older, the credit may not exceed $2,000, In the case of married
individuals filing a joint return, only one spouse is required to be 65 years of age or older
to qualify for the credit applicable to individuals who are 65 years of age and older as
established by this subsection or to qualify for the $1,500 or $2,000 credit limitation,
Married taxpayers filing separate returns do not qualify for the credit under this section.
Sec. 2. 36 MRSA §5403, sub-§6, as repealed and replaced by PL 2023, c. 412, Pt.
S, §5, is amended to read;
COMMITTEE AMENDMENT
f^QS COMMITTEE AMENDMENT " ^" to H.P, 1368, L.D. 2144
6. Property tax fairness credit. For the property tax fairness credit:
A. Beginning in 2018 and each year thereafter, by the benefit base amounts in section
5219-KK, subsection 1, paragraph A-l, subparagraphs (1) to (3), except that for the
purposes of this subsection, notwithstanding section 5402, subsection 1-B, the "cost-
of-living adjustment" is the Chained Consumer Price Index for the 12-month period
ending June 30th of the preceding calendar year divided by the Chained Consumer
Price Index for the 12-month period ending June 30, 2017;afid
B, Beginning in 2024 and each year thereafter, by the benefit base amount in section
5219-KK, subsection 1, paragraph A-l, subparagraph (4), except that for the purposes
of this subsection, notwithstanding section 5402, subsection 1-B, the "cost-of-living
adjustment" is the Chained Consumer Price Index for the 12-month period ending June
30th of the preceding calendar year divided by the Chained Consumer Price Index for
the 12-month period ending June 30, 2023; and
C. Beginning in 2024 and each year thereafter, by the income amount at or below
which a resident individual who is 65 years of age or older is allowed the credit
provided in section 5219-KK, subsection 2-D that is equal to the amount by which the
benefit base for the resident individual exceeds3% of the resident individual's _annual
income, except that for the purposes of this subsection, notwithstanding section 5402.
subsection 1-B. the "cost-of-livine adjustment" is the Chained Consumer Price Index
for th_e_l_2-mojrth_p_eriod ending June 30th of the precedine calendar year divided by
the Chained Consumer Price Index for the 12-month period ending June 30. 2023;
Sec. 3. Appropriations and allocations. The following appropriations and
allocations are made.
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF
Revenue Services, Bureau of 0002
Initiative; Provides one-time funding for computer programming, system testing and
printing costs associated with changes to the property tax fairness credit,
GENERAL FUND 2023-24 2024-25
AHOther $0 $52,458
GENERAL FUND TOTAL $0 $52,458
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section
number to read consecutively.
SUMMARY
This amendment replaces the bill and provides that, for tax years beginning on or after
January 1, 2024, for resident individuals who are 65 years of age and older filing
individually or as a married individual filing jointly, with an annual income of $36,000 or
less, indexed for inflation, the property tax fairness credit is equal to the amount by which
the benefit base for the resident individual exceeds 3% of the resident individual's annual
income. In the case of married individuals filing jointly, only one spouse is required to be
Page2-131LR2842(02)
COMMITTEE AMENDMENT
COMMITTEE AMENDMENT " ^' to H.P. 1368, L,D. 2144
65 years of age or older to qualify for the tax credit. The amendment does not eliminate
the property tax fairness credit available under current law,
FISCAL NOTE REQUIRED
(See attached)
COMMITTEE AMENDMENT
Approved: 03/11/24 ^K?c^
LD 2144 LR 2842(02)
An Act to Provide Property Tax Relief by Increasing the Availability of the Property Tax Fairness
Credit
Fiscal Note for Bill as Amended by Committee Amendment "^ ^-- ^sf^
Committee: Taxation
Fiscal Note Required: Yes
Fiscal Note
Net Cost (Savings)
General Fund
Projections Projections
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
$0 $3,196,958 $3,205,551 $3,135,000
Appropriations/Allocations
General Fund
$0
$52,458
$4,051
Revenue
General Fund
Other Special Revenue Funds
$0 ($3,144,500) ($3,201,500) ($3,135,000)
$0 ($165,500) ($168,500) ($165,000)
Fiscal Detail and Notes
This bill makes changes to the property tax fairness credit that will increase eligibility for the credit, These changes
will decrease income tax revenue to the General Fund by $3,144,500 and decrease Local Government Fund revenue
by $165,500 in fiscal year 2024-25.
The bill includes a one-time General Fund appropriation to the Department of Administrative and Financial Services,
Bureau of Revenue Services of $52,458 in fiscal year 2024-25 for computer programming, system testing and
printing costs to implement changes to the property tax fairness credit.
LR2842(02) - Fiscal Note - Page 1 of 1