An Act to Increase the Homestead Exemption to $50,000
Maine Legislature, Session 131, LD 1202
Committee: Taxation
Sponsors: THERIAULT, CHIPMAN, ARDELL, BOYER, CARMICHAEL, FAULKINGHAM, PERRY, QUINT, SKOLD, LIBBY
Amends: 36 MRSA §683, 36 MRSA §685

Legislative Document
No. 1202
H.P. 762
House of Representatives, March 14, 2023
An Act to Increase the Homestead Exemption to $50,000
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative THERIAULT of Fort Kent.
Cosponsored by Senator CHIPMAN of Cumberland and
Representatives: ARDELL of Monticello, BOYER of Poland, CARMICHAEL of Greenbush, 
FAULKINGHAM of Winter Harbor, PERRY of Bangor, QUINT of Hodgdon, SKOLD of 
Portland, Senator: LIBBY of Cumberland.
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, April 1, 2021, April 1, 2022 and April 1, 2023; and $40,000 of the just value 
of the homestead for property tax years beginning on or after April 1, 2024.
Sec. 2.  36 MRSA §683, sub-§3, as amended by PL 2021, c. 398, Pt. PPPP, §1, 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 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 and April 1, 2023, a percentage 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.  The percentage for each property tax year is the same as the 
percentage of state reimbursement for that property tax year under section 685, subsection 
2. For property tax years beginning on or after April 1, 2024, 85% 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 2021, c. 398, Pt. PPPP, §2, 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 
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 and April 
1, 2023, a percentage 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 percentage for each property tax year is the same as the percentage 
of state reimbursement for that property tax year under section 685, subsection 2. For 
property tax years beginning on or after April 1, 2024, 85% 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, ¶D, as enacted by PL 2021, c. 398, Pt. PPPP, §3, 
is amended to read:
D.  For property tax years beginning on April 1, 2022, 73% of the taxes lost by reason 
of the exemptions under section 683, subsections 1 and 1‑B; and
Sec. 5.  36 MRSA §685, sub-§2, ¶E, as enacted by PL 2021, c. 398, Pt. PPPP, §3, 
is amended to read:
E.  For property tax years beginning on or after April 1, 2023, the percentage of the 
taxes lost by reason of the exemptions under section 683, subsections 1 and 1‑B that is 
percentage points over the percentage for the previous year until the percentage of 
reimbursement reaches 100%.; and
Sec. 6.  36 MRSA §685, sub-§2, ¶F is enacted to read:
F.  For property tax years beginning on or after April 1, 2024, 85% of the taxes lost by 
reason of the exemptions under section 683, subsections 1 and 1-B.
SUMMARY
This bill increases the property tax exemption for homesteads from $25,000 to $50,000 
for property tax years beginning on or after April 1, 2024. This bill also adds provisions 
increasing the rate of state reimbursement, which has the effect of reimbursing 
municipalities for revenue lost as a result of the increase in the homestead property tax 
exemption to $50,000.