An Act to Invest in Maine's Families and Workforce by Amending
Maine Legislature, Session 132, LD 1082
Sponsors: FECTEAU, PIERCE, DAUGHTRY
Amends: 36 MRSA §4641-A, 36 MRSA §4641-B, 36 MRSA §4641-C

Legislative Document
No. 1082
H.P. 704
House of Representatives, March 18, 2025
An Act to Invest in Maine's Families and Workforce by Amending 
the Real Estate Transfer Tax
Received by the Clerk of the House on March 14, 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 Speaker FECTEAU of Biddeford.
Cosponsored by Senator PIERCE of Cumberland and
Representatives: DOUDERA of Camden, FRIEDMANN of Bar Harbor, GERE of 
Kennebunkport, Senator: President DAUGHTRY of Cumberland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §4641-A, sub-§1, ¶A, as enacted by PL 2001, c. 559, Pt. I, §3 
and affected by §15, is amended to read:
A.  The rate of the tax is $2.20 for each $500 or fractional part of $500 of the value of 
the property transferred, if the value is less than $1,000,000, and the rate of the tax is 
$5.00 for each $500 or fractional part of $500 of the value of the property transferred, 
if the value is $1,000,000 or greater.
Sec. 2.  36 MRSA §4641-A, sub-§2, ¶A, as enacted by PL 2001, c. 559, Pt. I, §3 
and affected by §15, is amended to read:
A.  The rate of the tax is $2.20 for each $500 or fractional part of $500 of the value of 
the real property, if the value is less than $1,000,000, owned by the entity and located 
in this State and the rate of the tax is $5.00 for each $500 or fractional part of $500 of 
the value of the real property, if the value is $1,000,000 or greater.
Sec. 3.  36 MRSA §4641-B, sub-§4-B, ¶E-1, as enacted by PL 2023, c. 412, Pt. 
AAAA, §3, is amended to read:
E-1.  In fiscal year 2025-26 and each fiscal year thereafter, the Treasurer of State shall 
credit the revenues derived from the tax imposed pursuant to section 4641‑A, 
subsection 1 in accordance with this paragraph.
(1)  At the beginning of the fiscal year, the Maine State Housing Authority shall 
certify to the Treasurer of State the amount that is necessary and sufficient to meet 
the authority's obligations relating to bonds issued or planned to be issued by the 
authority under Title 30‑A, section 4864.
(2)  On a monthly basis, the Treasurer of State shall apply 50% of the revenues in 
accordance with this subparagraph.  The Treasurer of State shall first pay revenues 
available under this subparagraph to the Maine State Housing Authority, which 
shall deposit the funds in the Maine Energy, Housing and Economic Recovery 
Fund established in Title 30‑A, section 4863, until the amount paid equals the 
amount certified by the Maine State Housing Authority under subparagraph (1), 
after which the Treasurer of State shall credit 1/2 of any remaining revenues 
available under this subparagraph to the General Fund and 1/2 of any remaining 
revenues available under this subparagraph to the Housing First Fund established 
in Title 22, section 20‑A, subsection 2.
(3)  On a monthly basis, the Treasurer of State shall credit 50% of the revenues to 
the Maine State Housing Authority.  The Maine State Housing Authority shall 
deposit the funds received pursuant to this subparagraph in the Housing 
Opportunities for Maine Fund created in Title 30‑A, section 4853.  Beginning July 
1, 2025, the Maine State Housing Authority shall use 25% of funds transferred to 
the Housing Opportunities for Maine Fund under this subparagraph to support the 
creation of new housing units, through new construction or adaptive reuse, that are 
affordable to low-income households.
Sec. 4.  36 MRSA §4641-B, sub-§4-B, ¶E-2 is enacted to read:
E-2.  In fiscal year 2026-27 and each fiscal year thereafter, the Treasurer of State shall 
credit the revenues derived from the tax imposed pursuant to section 4641-A, 
subsection 1 in accordance with this paragraph. 
(1) At the beginning of the fiscal year, the Maine State Housing Authority shall 
certify to the Treasurer of State the amount that is necessary and sufficient to meet 
the authority's obligations relating to bonds issued or planned to be issued by the 
authority under Title 30‑A, section 4864.
(2) After reducing the revenue amount by the amount certified pursuant to 
subparagraph (1), on a monthly basis, the Treasurer of State shall apply 17% of the 
remaining revenues in accordance with this subparagraph. The Treasurer of State 
shall pay revenues available under this subparagraph to the Department of Health 
and Human Services, which shall deposit the funds in the Housing First Fund 
established pursuant to Title 22, section 20-A.
(3) After applying revenues pursuant to subparagraph (2), on a monthly basis, the 
Treasurer of State shall apply 15% of the remaining revenues in accordance with 
this subparagraph. The Treasurer of State shall pay revenues available under this 
subparagraph to the Maine State Housing Authority, which shall deposit the funds 
in the Housing Opportunities for Maine Fund created in Title 30-A, section 4853.
(4) After applying revenues pursuant to subparagraph (3), on a monthly basis, the 
Treasurer of State shall apply 60% of the remaining revenues in accordance with 
this subparagraph. The Treasurer of State shall pay revenues available under this 
subparagraph to the Maine State Housing Authority, which shall apply the funds 
to the affordable housing income tax credit established pursuant to section 
5219-WW and the authority's rural affordable rental program and affordable 
homeownership program.
(5) After applying revenues pursuant to subparagraph (4), on a monthly basis, the 
Treasurer of State shall apply the remaining balance of the revenues in accordance 
with this subparagraph. The Treasurer of State shall deposit the funds in the 
General Fund.
Sec. 5.  36 MRSA §4641-C, sub-§20, as amended by PL 2017, c. 402, Pt. E, §3 
and affected by PL 2019, c. 417, Pt. B, §14, is further amended to read:
20.  Controlling interests.  Transfers of controlling interests in an entity with a fee 
interest in real property if the transfer of the real property would qualify for exemption if 
accomplished by deed of the real property between the parties to the transfer of the 
controlling interest; and
Sec. 6.  36 MRSA §4641-C, sub-§21, as enacted by PL 2017, c. 402, Pt. E, §4 and 
affected by PL 2019, c. 417, Pt. B, §14, is amended to read:
21.  Transfers pursuant to transfer on death deed.  Any transfer of real property 
effectuated by a transfer on death deed pursuant to Title 18‑C, Article 6, Part 4.; and
Sec. 7.  36 MRSA §4641-C, sub-§22 is enacted to read:
22.  First-time home buyers participating in certain mortgage loan programs.  
Deeds to property to purchasers who receive financial assistance through the Maine State 
Housing Authority's first-time home-buyer mortgage loan programs.
SUMMARY
This bill exempts from the real estate transfer tax home buyers who use the Maine State 
Housing Authority's first-time home-buyer mortgage loan programs. It also increases the 
real estate transfer tax from $2.20 to $5 per $500 for real estate sales over $1,000,000. The 
bill directs the distribution of revenue derived from the tax collected on the transfer of 
property by deed, which is part of the real estate transfer tax, as follows:
1. The amount necessary and sufficient to meet bond obligations under the Maine 
Energy, Housing and Economic Recovery Program, distributed to the program;
2. Seventeen percent of that remaining balance, distributed to the Housing First Fund;
3. Fifteen percent of that remaining balance, distributed to the Housing Opportunities 
for Maine Fund;
4. Sixty percent of that remaining balance, distributed to the State's affordable housing 
income tax credit program and the Maine State Housing Authority's rural affordable rental 
program and affordable homeownership program; and
5. The remaining balance distributed to the General Fund.
This bill also removes, beginning in fiscal year 2026-27, the requirement that 25% of 
Housing Opportunities for Maine Fund funds be used for housing production.