Resolved: Two thirds of each branch of the
Maine Legislature, Session 132, LD 1112
Committee: Taxation
Sponsors: MATLACK

Legislative Document
No. 1112
H.P. 731
House of Representatives, March 18, 2025
RESOLUTION, Proposing an Amendment to the Constitution of 
Maine Requiring Not Less Than 90 Percent State Reimbursement 
for Residential Real Estate Property Tax Exemptions and to 
Establish a Minimum Homestead Exemption
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative MATLACK of St. George.
Constitutional amendment. Resolved: Two thirds of each branch of the 
Legislature concurring, that the following amendment to the Constitution of Maine be 
proposed:
Constitution, Art. IV, Pt. Third, §23 is amended to read:
Section 23.  Municipalities reimbursed annually.  The Legislature shall 
annually reimburse each municipality from state tax sources for not less than 50% of the 
property tax revenue loss suffered by that municipality during the previous calendar year 
because of the statutory property tax exemptions or credits enacted after April 1, 1978, 
except that the Legislature shall reimburse each municipality from state tax sources for not 
less than 90% of the property tax revenue loss suffered by that municipality during the 
previous calendar year because of an exemption for the residential real estate of veterans 
who served in the Armed Forces of the United States, an exemption for the residential real 
estate of persons who are legally blind and an exemption for the qualifying homesteads of 
permanent residents of this State. On or after April 1, 2026, the exemption provided for 
qualifying homesteads may be no less than $50,000, which must be adjusted annually by 
the percentage change in the consumer price index, or similar inflationary index, published 
by a bureau that calculates labor statistics in a United States department of labor for the 
calendar year. The Legislature shall enact appropriate legislation to carry out the intent of 
this section and in implementing this section may not distribute less than 5% of state sales 
and income tax revenues to municipalities according to a formula established in state 
statutes. If, on or after July 1, 2025, the percentage of state sales and income tax revenues 
shared with municipalities exceeds 5%, no less than the increased percentage of state sales 
and income tax revenues may be distributed to municipalities according to a formula 
established in state statutes.
This section shall allow, but not require, reimbursement for statutory property tax 
exemptions or credits for unextracted minerals.
Constitutional referendum procedure; form of question; effective date.  
Resolved:  That the municipal officers of this State shall notify the inhabitants of their 
respective cities, towns and plantations to meet, in the manner prescribed by law for holding 
a statewide election, at a statewide election held in the month of November following the 
passage of this resolution, to vote upon the ratification of the amendment proposed in this 
resolution by voting upon the following question:
"Do you favor amending the Constitution of Maine to require the 
Legislature to annually reimburse each municipality from state tax sources 
not less than 90% of the property tax revenue loss suffered by that 
municipality during the previous calendar year because of exemptions on 
the residential real estate of veterans who served in the Armed Forces of 
the United States, the residential real estate of persons who are legally 
blind and the qualifying homesteads of permanent residents of this State, 
set the homestead exemption at no less than $50,000, adjusted annually for 
inflation and require the State to distribute no less than 5% of state sales 
and income tax revenues to municipalities according to a formula 
established in state statutes?"
The legal voters of each city, town and plantation shall vote by ballot on this question 
and designate their choice by a cross or check mark placed within the corresponding square 
below the word "Yes" or "No."  The ballots must be received, sorted, counted and declared 
in open ward, town and plantation meetings and returns made to the Secretary of State in 
the same manner as votes for members of the Legislature.  The Governor shall review the 
returns.  If it appears that a majority of the legal votes are cast in favor of the amendment, 
the Governor shall proclaim that fact without delay and the amendment becomes part of 
the Constitution of Maine on the date of the proclamation.
Secretary of State shall prepare ballots.  Resolved:  That the Secretary of State 
shall prepare and furnish to each city, town and plantation all ballots, returns and copies of 
this resolution necessary to carry out the purposes of this referendum.
SUMMARY
This resolution proposes to amend the Constitution of Maine to require the Legislature 
to reimburse municipalities for not less than 90% of the lost property tax revenue associated 
with residential real estate exemptions extended to veterans of the Armed Forces of the 
United States and persons who are legally blind and for qualifying homesteads of 
permanent residents of this State. The resolution also establishes the minimum homestead 
exemption at $50,000, which must be adjusted annually by the percentage change in the 
consumer price index, or similar inflationary index. The resolution also provides that, at a 
minimum, no less than 5% of state sales and income tax revenues must be shared with 
municipalities and protects future increases in the percentage of state sales and income tax 
revenues distributed to municipalities.