An Act to Provide Property Tax Stabilization for Older Maine
Maine Legislature, Session 132, LD 0559
Sponsors: BAILEY
Amends: 36 MRSA §1822, 36 MRSA §6236

Legislative Document
No. 559
S.P. 238
In Senate, February 25, 2025
An Act to Provide Property Tax Stabilization for Older Maine 
Residents
Received by the Secretary of the Senate on February 19, 2025.  Referred to the Committee 
on Taxation pursuant to Joint Rule 308.2 and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator BAILEY of York.
Cosponsored by Senators: CURRY of Waldo, NANGLE of Cumberland, RAFFERTY of York, 
RENY of Lincoln, Representatives: DOUDERA of Camden, STOVER of Boothbay.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §1822 is enacted to read:
§1822.  Municipal local option sales tax on prepared food and lodging; funding for 
stabilization of property taxes for seniors
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings.
A.  "Local option sales tax" means a sales tax imposed pursuant to subsection 2.
B.  "Participating municipality" means a municipality that has imposed a local option 
sales tax pursuant to this section.
2.  Authorization to impose local option sales tax.  A municipality by referendum 
conducted pursuant to subsection 8 may impose a local option sales tax of 1% on the value 
of prepared food and rental of living quarters in any hotel, rooming house or tourist or 
trailer camp.
3.  Local option sales tax limited to prepared food and lodging.  A municipality 
may not impose a local option sales tax on the value of prepared food or rental of living 
quarters of any hotel, rooming house or tourist or trailer camp not subject to tax pursuant 
to section 1811.
4.  Notify State Tax Assessor.  A participating municipality shall notify the assessor 
at least 90 days before the local option sales tax is effective.
5.  Payment of revenue.  A retailer in a participating municipality shall pay the revenue 
from a local option sales tax at the time and in the manner provided in section 1951-A for 
the payment of state sales tax revenue. The tax is subject to the same enforcement 
provisions, interest, penalties and administrative actions as other taxes assessed under this 
Part.
6.  Distribution of revenue.  Quarterly, the assessor shall identify the amount of 
revenue attributable to each participating municipality under this section, subtract the costs 
of administering this section and certify the net amount for that municipality to the 
Treasurer of State for distribution pursuant to this subsection.  From the net amount 
certified for a municipality under this subsection, the Treasurer of State shall make monthly 
payments to the participating municipality, which may only use the revenue to offset the 
loss of revenue from property taxes as a result of a program adopted pursuant to section 
6236.
For purposes of this subsection, "costs of administering this section" means the lesser of 
the actual cost to the assessor of administering this section and 2% of the total revenue 
generated by a local option sales tax.
7.  Effect on revenue sharing and other state aid programs.  Revenue received 
pursuant to subsection 5 may not be considered to be receipts from the taxes imposed under 
this Part for the purpose of transfers to the Local Government Fund under Title 30-A, 
section 5681. Revenue received pursuant to subsection 5 may not be used to reduce or 
eliminate any funding otherwise due a municipality under any provision of law providing 
aid to the municipality, including, but not limited to, aid for schools, roads, public 
assistance or jails.
8.  Referendum.  The question of whether to impose a local option sales tax must be 
submitted to the legal voters of a municipality that seeks to impose the local option sales 
tax.  The referendum question must indicate the rate of the local option sales tax.
The petition process and voting must be held and conducted in accordance with Title 30-A, 
sections 2528, 2529 and 2532 even if the municipality has not accepted the provisions of 
Title 30-A, section 2528.  The voting at elections must be held and conducted in accordance 
with Title 21-A.
Sec. 2.  36 MRSA §6236 is enacted to read:
§6236.  Municipal authority; stabilization of property taxes for seniors
The legislative body of a municipality may by ordinance adopt a program to stabilize 
the property taxes of seniors who have homesteads in the municipality.  The program 
adopted by the municipality must meet, at a minimum, the requirements established in this 
section. A municipality may impose eligibility requirements stricter than those established 
in this section.
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings.
A.  "Eligible homestead" means a homestead occupied by an eligible individual who is 
eligible for a homestead exemption under chapter 105, subchapter 4-B for the property 
tax year for which the individual is requesting stabilization.  
B.  "Eligible individual" means an individual who, on April 1st of the property tax year 
for which the individual is requesting stabilization:
(1)  Meets a minimum age requirement established by the municipality, as long as 
that minimum is not less than 62 years of age; and
(2)  Is a permanent resident of the State as defined in section 681, subsection 4 and 
has owned a homestead in the State for at least 10 years. 
C.  "Homestead" has the same meaning as under section 681, subsection 2.
D.  "Stabilize" means to maintain the property tax billed to an eligible individual for 
the individual's eligible homestead at the amount billed for that homestead for the 
property tax year preceding the property tax year for which the individual is requesting 
stabilization. 
2.  Application for stabilization.  A municipality adopting a program pursuant to this 
section shall require an eligible individual to apply by December 1st to the municipality in 
which the individual's homestead is located requesting that the municipality stabilize the 
property tax assessed on that individual's homestead for the property tax year beginning on 
April 1st following the submission of the application.  A new application is required for 
each year for which stabilization is requested.  A municipality may require an eligible 
individual to apply for relief under other applicable property tax assistance exemptions and 
programs, including, but not limited to, the Maine resident homestead property tax 
exemption under chapter 105, subchapter 4-B and the Maine Residents Property Tax 
Program, in order to decrease the amount of property taxes to be stabilized.
3.  Stabilization for eligible individual.  If a municipality determines that an applicant 
for stabilization under subsection 2 is an eligible individual and that the individual's 
homestead is an eligible homestead, the municipality shall stabilize the property tax on the 
individual's homestead for the property tax year for which stabilization was requested.
4.  Offset of revenue loss.  A municipality that has imposed a local option sales tax 
pursuant to section 1822 may only use the revenue received pursuant to section 1822, 
subsection 6 to offset the loss of revenue from property taxes as a result of the program 
adopted pursuant to this section and for no other purpose.
5.  Repeal of program.  A municipality that has adopted a program under this section 
may repeal it through the same procedure by which the program was adopted.
SUMMARY
This bill allows a municipality to adopt by ordinance a property tax stabilization 
program for senior residents of that municipality.  A municipality adopting such an 
ordinance sets a minimum age for participation by residents of the municipality of not less 
than 62 years of age.  The person must also be a permanent resident of the State and have 
owned a homestead in the State for at least 10 years. A municipality may adopt stricter 
eligibility requirements.
The bill also allows a municipality, by referendum, to adopt a local option sales tax of 
1% on the value of prepared food and rental of living quarters in any hotel, rooming house 
or tourist or trailer camp. The revenue generated by the local option sales tax may only be 
used to offset the loss of revenue from the property tax stabilization program for senior 
residents of that municipality.