An Act to Create a State Property Tax Directed Toward 2nd Homes
Maine Legislature, Session 132, LD 1885
Sponsors: GEIGER
Amends: 5 MRSA §6203-D, 20-A MRSA §15009, 20-A MRSA §15699, 36 MRSA §459

Legislative Document
No. 1885
H.P. 1256
House of Representatives, May 5, 2025
An Act to Create a State Property Tax Directed Toward 2nd Homes 
for the Purposes of Funding Education, Early Childhood Programs 
and the Land for Maine's Future Trust Fund
Received by the Clerk of the House on May 1, 2025.  Referred to the Committee on 
Taxation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative GEIGER of Rockland.
Cosponsored by Representatives: BRIDGEO of Augusta, DODGE of Belfast, MATLACK of 
St. George, Senator: BEEBE-CENTER of Knox.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA §6203-D, sub-§1, as enacted by PL 2023, c. 284, §8, is amended 
to read:
1.  Fund established.  There is established the Land for Maine's Future Trust Fund that 
is administered by the board. The Land for Maine's Future Trust Fund consists of the 
proceeds from the sale of any bonds authorized for the purposes set forth in subsection 2, 
eligible investment earnings of funds established under this chapter, revenue from the tax 
imposed on real property pursuant to Title 36, section 459 and any funds received as 
contributions from private and public sources for the purposes set forth in subsection 2.  
The Land for Maine's Future Trust Fund must be held separate and apart from all other 
money, funds and accounts and eligible investment earnings credited to the assets of the 
Land for Maine's Future Trust Fund become part of the assets of that fund. Any balance 
remaining in the Land for Maine's Future Trust Fund at the end of any fiscal year must be 
carried forward for the next fiscal year.
Sec. 2.  20-A MRSA §15009 is enacted to read:
§15009.  Early Childhood Education Fund
1.  Fund established.  The Early Childhood Education Fund, referred to in this section 
as "the fund," is established as an Other Special Revenue Funds account for the purposes 
specified in this section. 
2.  Source of revenue; nonlapsing.  The fund is funded by revenue from the tax 
imposed on real property pursuant to Title 36, section 459.  Any unexpended balances in 
the fund may not lapse but must be carried forward. 
3.  Fund to be used to increase funding for early childhood education programs.  
Allocations from the fund must be used to provide funds for the purpose of expanding or 
developing early childhood education programs, as determined by the commissioner. 
4.  Report by State Controller.  The State Controller shall report at least annually on 
the fund on or before the 2nd Friday in November to the joint standing committees of the 
Legislature having jurisdiction over appropriations and financial affairs and education 
matters.  The report must summarize the status of and activity in the fund, including 
amounts distributed and how the recipients of those funds used the funds to expand or 
develop early childhood education programs. 
5.  Transfer for payments.  Notwithstanding any provision of law to the contrary, the 
State Controller shall transfer from the balance available in the fund to the department an 
amount for use as specified in subsection 3.  Amounts transferred may be expended based 
on allotment established by financial order upon recommendation by the State Budget 
Officer and approval by the Governor.  The amounts transferred are considered adjustments 
to allocations.  The Governor shall inform the Legislative Council and the joint standing 
committees of the Legislature having jurisdiction over appropriations and financial affairs 
and education matters immediately upon such a transfer from the fund. 
Sec. 3.  20-A MRSA §15699 is enacted to read:
§15699.  Fund for Essential Programs and Services
1.  Fund established.  The Fund for Essential Programs and Services, referred to in 
this section as "the fund," is established as an Other Special Revenue Funds account for the 
purposes specified in this section.  
2.  Source of revenue; nonlapsing.  The fund is funded by revenue from the tax 
imposed on real property pursuant to Title 36, section 459.  Any unexpended balances in 
the fund may not lapse but must be carried forward. 
3.  Fund to be used to increase state share percentage for below target school 
administrative units.  Allocations from the fund must be used to provide funds to school 
administrative units that do not achieve the annual target for the state share percentage of 
the statewide adjusted total cost of the components of essential programs and services as 
specified in section 15671, subsection 7, paragraph B, subparagraph (17), if that shortage 
is the result of a municipality within that school administrative unit having a higher poverty 
rate than the median poverty rate for the State and a lower median income rate than the 
median income rate for the State.  If insufficient funds are available to increase all such 
school administrative units to the annual target, the commissioner shall use the funds in the 
fund to equalize, to the extent possible, the percentage of the target for all such school 
administrative units. 
4.  Report by State Controller.  The State Controller shall report at least annually on 
the fund on or before the 2nd Friday in November to the joint standing committees of the 
Legislature having jurisdiction over appropriations and financial affairs and education 
matters.  The report must summarize the status of and activity in the fund, including the 
amounts provided to each school administrative unit under subsection 3 and the percentage 
of the state share of the total cost of funding public education from kindergarten to grade 
12, as described by the Essential Programs and Services Funding Act, that school 
administrative unit attained. 
5.  Transfer for payments.  Notwithstanding any provision of law to the contrary, the 
State Controller shall transfer from the balance available in the fund an amount for essential 
programs and services payments to the department for use as specified in subsection 3.  
Amounts transferred may be expended based on allotment established by financial order 
upon recommendation by the State Budget Officer and approval by the Governor.  The 
amounts transferred are considered adjustments to allocations.  The Governor shall inform 
the Legislative Council and the joint standing committees of the Legislature having 
jurisdiction over appropriations and financial affairs and education matters immediately 
upon such a transfer from the fund. 
Sec. 4.  36 MRSA §459 is enacted to read:
§459.  Statewide property tax
For property tax years beginning on or after April 1, 2026, for the purpose of all real 
estate in this State that is subject to a Maine property tax, including real estate in a 
municipality or the unorganized territory, that real estate is subject to taxation pursuant to 
this section, and that tax is referred to in this section as "the statewide property tax." 
1.  Taxable year.  The taxable year is from April 1st to April 1st.  The status of all 
taxpayers must be fixed as of April 1st annually. 
2.  Rate of tax; additional to other property taxes.  The statewide property tax is 
assessed at the rate of 5 mills applied to 100% valuation of the statewide valuation on all 
real estate in this State not exempt from the assessment of tax.  The statewide property tax 
is in addition to any other tax imposed on real estate in this State, either by a municipality 
or the State.  As used in this section, "statewide valuation" means the state valuation, as 
defined in section 381, for the unorganized territory and the local assessed valuation for 
municipalities. 
3.  Determination of statewide property tax assessment.  The State Tax Assessor 
shall determine the amount of the statewide property tax due from each taxpayer based 
upon the rate established in subsection 2.  The State Tax Assessor shall notify each taxpayer 
in writing, not later than August 1st annually. 
4.  Due dates; interest.  Taxes levied under this section must be paid to the State Tax 
Assessor on or before October 1st of each year.  A person who fails to pay the tax on or 
before October 1st is liable for interest at the maximum rate posted on the Treasurer of 
State's publicly accessible website according to section 505, subsection 4. 
5.  Exemption and amount; eligibility; administration.  The just value of up to 
$1,000,000 of a homestead subject to tax under this section is exempt from the tax imposed 
pursuant to this section as provided in this subsection. 
A.  A permanent resident who receives an exemption under the Maine resident 
homestead property tax exemption under chapter 105, subchapter 4-B is eligible for 
the exemption provided pursuant to this subsection. 
B.  For purposes of administration, the State Tax Assessor shall administer the 
exemption under this subsection in the same manner as the assessor administers the 
Maine resident homestead property tax exemption under chapter 105, subchapter 4-B 
for homesteads located in the unorganized territory. 
C.  The exemption provided in this subsection applies only to the tax imposed pursuant 
to this section. 
6.  Administration.  For purposes of administration of this section, including, without 
limitation, the assessment of the statewide property tax, warrants, levy, change of 
ownership, interest and foreclosure, except when specifically provided, the provisions of 
law that apply to the levy of property taxes by municipalities and in the unorganized 
territory apply to this section, and the State Tax Assessor shall administer the statewide 
property tax accordingly. 
7.  Distribution of revenue.  Revenue from the statewide property tax must be 
distributed as follows. 
A.  Fifty percent must be transferred on at least an annual basis to the Fund for Essential 
Programs and Services established in Title 20-A, section 15699. 
B.  Forty percent must be transferred on at least an annual basis to the Early Childhood 
Education Fund established in Title 20-A, section 15009. 
C.  Ten percent must be transferred on at least an annual basis to the Land for Maine's 
Future Trust Fund established in Title 5, section 6203-D, subsection 1. 
8.  Annual report.  Beginning November 1, 2026 and annually thereafter, the State 
Tax Assessor shall report to the joint standing committees of the Legislature having 
jurisdiction over appropriations and financial affairs, education matters and taxation 
matters regarding the amount of revenue generated by the statewide property tax, the 
amounts distributed pursuant to subsection 7 and any recommendations for improving the 
administration of the statewide property tax.  Each joint standing committee may submit a 
bill to the legislative session that convenes immediately following the submission of the 
report. 
SUMMARY
This bill creates the statewide property tax to impose a tax of 5 mills of the assessed 
value of real estate that is not exempt from taxation.  This bill also establishes an exemption 
from the statewide property tax of the just value up to $1,000,000 for homesteads that are 
eligible for the Maine homestead property tax exemption, including being occupied by a 
permanent resident of the State as that person's permanent residence.  The statewide 
property tax exemption applies only to the taxes assessed for the statewide property tax.
The State Tax Assessor is directed to administer the statewide property tax in the same 
manner and under the same constraints as currently done for real property in the 
unorganized territory.
The bill also creates 2 new funds, the Fund for Essential Programs and Services and 
the Early Childhood Education Fund.  The Fund for Essential Programs and Services 
receives 50% of the revenue from the statewide property tax, which must be used to provide 
funds to school administrative units that do not achieve the annual target for the state share 
percentage of the statewide adjusted total cost of the components of essential programs and 
services, if that shortage is the result of a municipality within that school administrative 
unit having a higher poverty rate than the median poverty rate for the State and a lower 
median income rate than the median income rate for the State.
The Early Childhood Education Fund receives 40% of the revenue from the statewide 
property tax, which must be used to provide funds for the purpose of expanding or 
developing early childhood education programs, as determined by the Commissioner of 
Education.  
The remaining 10% of revenue is deposited in the Land for Maine's Future Trust Fund.