An Act to Provide Immediate and Long-term Property Tax Relief to
Maine Legislature, Session 132, LD 1770
Committee: Taxation
Sponsors: DAUGHTRY, FECTEAU
Amends: 36 MRSA §5219-K

Legislative Document
No. 1770
S.P. 688
In Senate, April 23, 2025
An Act to Provide Immediate and Long-term Property Tax Relief to 
Maine Households
(EMERGENCY)
Reference to the Committee on Taxation suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by President DAUGHTRY of Cumberland.
Cosponsored by Speaker FECTEAU of Biddeford and
Senators: BALDACCI of Penobscot, BICKFORD of Androscoggin, CARNEY of Cumberland, 
LIBBY of Cumberland, PIERCE of Cumberland, STEWART of Aroostook, Representatives: 
ANKELES of Brunswick, MATLACK of St. George.
Emergency preamble.  Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, the Legislature has enacted a series of property tax relief measures in recent 
years, including expanding the property tax fairness credit, improving the homestead 
property tax exemption, expanding the property tax deferral program and increasing state-
municipal revenue sharing, in an effort to ease the burden on Maine households; and
Whereas, despite recent legislative efforts to provide relief, many Maine residents 
continue to face rising property tax bills and the State remains among the states where 
households spend a significant share of their income on property taxes, all amid broader 
increases in the cost of living; and
Whereas, the State is facing a statewide housing crisis, and rising property taxes, 
especially in high-demand areas, are making it harder for first-time home buyers and 
working families to afford stable housing, further straining the already limited supply of 
affordable homes; and
Whereas, at the same time, older Maine residents who wish to downsize or move 
closer to services often have no affordable housing options available, forcing them to 
remain in homes with sharply increased valuations and unaffordable property tax bills, 
despite living on fixed incomes; and
Whereas, municipalities across the State, ranging from small rural towns to larger 
cities, face varying budget pressures and responsibilities and often lack the resources, 
staffing or technology needed to ensure accurate, equitable and up-to-date property 
assessments; and
Whereas, the property tax fairness credit remains a vital tool for targeted tax relief, 
but current benefit levels do not fully reflect today’s economic pressures or cost of living; 
and
Whereas, efforts to reform the property tax system in the State have often been 
constrained by constitutional requirements, such as the mandate that all real and personal 
property be assessed equally according to its just value; and
Whereas, other states have pursued innovative strategies, including constitutional 
reforms, to ensure effective and equitable property tax relief; and
Whereas, it is imperative that the State deliver immediate property tax relief and 
launch a comprehensive, data-driven process to develop long-term solutions through a 
representative task force; and
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore,
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §5219-KK, sub-§2-D, as amended by PL 2023, c. 412, Pt. S, 
§4, is repealed and the following enacted in its place:
2-D.  Credit in 2022 and after.  For tax years beginning on or after January 1, 2022, 
a resident individual is allowed a credit against the taxes imposed under this Part equal to 
the amount by which the benefit base for the resident individual exceeds 4% of the resident 
individual's income.  The amount of the credit may not exceed:
A.  For tax years beginning on or after January 1, 2022 and before January 1, 2025, 
$1,000 for resident individuals under 65 years of age as of the last day of the taxable 
year;
B.  For tax years beginning on or after January 1, 2022 and before January 1, 2024, 
$1,500 for resident individuals 65 years of age and older as of the last day of the taxable 
year;
C.  For tax years beginning on or after January 1, 2024 and before January 1, 2025, 
$2,000 for resident individuals 65 years of age and older as of the last day of the taxable 
year;
D.  For tax years beginning on or after January 1, 2025, $2,000 for resident individuals 
under 65 years of age as of the last day of the taxable year; and
E.  For tax years beginning on or after January 1, 2025, $2,500 for resident individuals 
years of age and older as of the last day of the taxable year.
In the case of married individuals filing a joint return, only one spouse is required to be 65 
years of age or older to qualify for the credit limitation specified in paragraphs B, C and E. 
Married individuals filing separate returns do not qualify for the credit under this section.
Sec. 2.  Real Estate Property Tax Relief Task Force established.  The Real 
Estate Property Tax Relief Task Force, referred to in this section as "the task force," is 
established.
1.  Membership.  Notwithstanding Joint Rule 353, the task force consists of 13 voting 
members and at least 2 nonvoting members as follows.
A.  The 13 voting members are appointed as follows:
(1)  Two members of the Senate, appointed by the President of the Senate, 
including at least one member of the party holding the 2nd largest number of seats 
in the Legislature and at least one of whom has expertise or background in the area 
of taxation; 
(2)  Two members of the House of Representatives, appointed by the Speaker of 
the House, including at least one member of the party holding the 2nd largest 
number of seats in the Legislature and at least one of whom has expertise or 
background in the area of taxation;  
(3)  Three members of the public, appointed by the President of the Senate, as 
follows:
(a)  One member who is a representative of economists or who is a tax expert;  
(b)  One member who is a representative of low-income residents of the State; 
and  
(c)  One member who has legal experience with constitutional issues or 
property tax issues;
(4)  Three members of the public, appointed by the Speaker of the House, as 
follows:
(a)  One member who is involved in real estate, economic or housing 
development with experience in long-term homeownership trends in the State;
(b)  One member who represents the business sector and who has paid property 
taxes over the last 10 years; and
(c)  One member who has expertise in assessing property taxes; and
(5) Three members of the public, appointed by the Governor, as follows:
(a)  One member who represents the interests of municipalities with fewer than 
15,000 residents and who has expertise in municipal government, municipal 
taxation, local government finance or property valuation; 
(b)  One member who represents the interests of municipalities with at least 
15,000 residents and who has expertise in municipal government, municipal 
taxation, local government finance or property valuation; and 
(c)  One member who represents the interests of older residents.
In making their appointments, the President of the Senate, the Speaker of the House 
and the Governor, to the extent feasible, shall ensure the membership of the task force 
reflects comprehensive geographic representation from the State.
B.  The nonvoting members are as follows:
(1)  The Commissioner of Administrative and Financial Services or the 
commissioner's designee; 
(2)  The Associate Commissioner for Tax Policy within the Department of 
Administrative and Financial Services, Bureau of Revenue Services or the 
associate commissioner's designee; and
(3)  Any additional members invited to participate by the chairs of the task force 
pursuant to subsection 2.
2.  Chairs; nonvoting members; selection of contracted entity.  The first-named 
Senate member is the Senate chair and the first-named House of Representatives member 
is the House chair of the task force.  The chairs may invite, as nonvoting members of the 
task force, individuals who have expertise in municipal government, municipal finance, 
economic development, constitutional law, tax policy, housing policy or tax assessing.  The 
chairs may select the contracted entity described in subsection 5, paragraph A, prior to all 
appointments being made. Prior to the first meeting of the task force, the chairs may select 
the contracted entity of the task force.
3.  Appointments; convening of task force.  All appointments must be made no later 
than 30 days following the effective date of this Act.  The appointing authorities shall notify 
the Executive Director of the Legislative Council once all appointments have been 
completed.  After appointment of all members, the chairs shall call and convene the first 
meeting of the task force.  If 30 days or more after the effective date of this resolve a 
majority of but not all appointments have been made, the chairs may request authority and 
the Legislative Council may grant authority for the task force to meet and conduct its 
business.
4.  Meetings.  The task force shall meet at least 4 times but no more than 8 times.
5.  Duties.  The task force shall:
A.  Contract with an entity for research and analytical support, as selected by the chairs 
pursuant to subsection 2, with the goal of determining the source of the problems with 
the current system of property taxation, who is most negatively affected by the current 
system of property taxation and how those persons are negatively affected.  At the 
direction of the chairs, an entity contracted with pursuant to this paragraph shall gather 
and analyze statewide property tax data, which may include:
(1)  For each municipality or each municipality within a representative sample of 
municipalities by county: 
(a)  The average property value, property tax bill and length of 
homeownership, differentiated by waterfront and nonwaterfront properties;  
(b)  The types of property; mill rate; date of last valuation; property valuation 
practices, including whether the municipality performs the valuations; median 
income of residents; number of households eligible to claim and actually 
claiming the property tax fairness credit pursuant to the Maine Revised 
Statutes, Title 36, section 5219-KK; number of homesteads eligible to 
participate in and actually participating in the deferred collection of homestead 
property taxes pursuant to Title 36, chapter 908; which municipalities have 
municipally funded and administered property tax relief programs; and the 
percentage of homes that are primary residences, the percentage of commercial 
property and the percentage of vacant commercial property; and 
(c)  How the municipality has used property tax relief funding, including but 
not limited to funds received from state-municipal revenue sharing pursuant to 
Title 30-A, section 5681; 
(2)  For each county: 
(a)  Changes in property values over the last 20 years; and
(b)  The average percentage of income spent on property taxes by residents; 
(3)  Data regarding any disparities or challenges across different regions in the 
State; 
(4)  Recent statewide property tax relief efforts that have been implemented or 
discussed in the Legislature or State Government;
(5)  Potential federal funding changes and how those could potentially impact 
property taxes in the State;
(6)  Any challenges in obtaining the information specified in this paragraph for the 
task force and recommendations for making the information available to the 
Legislature on a regular basis; and
(7)  Any additional data or information the chairs consider relevant to a productive 
discussion; 
B.  Perform a comparison of this State to the rest of the nation, including:
(1)  Determining how property tax assessment is instituted, the expenses associated 
with assessment and how assessment in the State compares with other states;
(2)  Exploring property tax relief measures and programs used by other states, 
particularly those states similar in geography, demographics, resident income or 
state and local government structure, to determine whether those relief programs 
could be adapted to the State; 
(3)  Studying property tax burdens in other states, including as a percentage of 
resident income, and any trends over the last 20 years; and
(4) Gathering any additional data or information the chairs determine relevant to a 
productive discussion;
C.  Explore the need for amendments to the Constitution of Maine or to the Maine 
Revised Statutes, including:  
(1) Reviewing constitutional constraints on property tax assessments and exploring 
whether an amendment to the Constitution of Maine could create more equitable 
and stable property tax policies; 
(2) Researching whether other states have constitutional provisions that allow for 
equitable property tax structures; 
(3) Researching which states have successfully amended their constitutions to 
allow for more effective property tax relief and the advantages and disadvantages 
of those amendments; and
(4) Recommending whether constitutional changes should be pursued and, if so, 
what changes should be made and how and when those changes should be made;
D.  Develop methods to ensure municipalities use property tax relief for its intended 
purpose while continuing to meet the needs of residents by: 
(1) Identifying mechanisms used in other states to ensure that local property tax 
relief funds are allocated effectively to the taxpayers; 
(2) Exploring mechanisms to support transparency and accountability in the use of 
property tax relief funds at the municipal level that exist in other states or that have 
been discussed in the State; and
(3) Recommending accountability measures, including but not limited to reporting 
requirements, financial incentives or disincentives;
E.  Assess changes to the valuation process and support for municipalities by:
(1)  Investigating how other states ensure equitable, updated and fair valuation 
practices; 
(2)  Analyzing whether certain geographic regions or types of communities, such 
as service centers, in the State have disproportionate property assessments that 
negatively affect specific populations; 
(3)  Identifying those resources municipalities need to conduct accurate property 
valuations, including funding, staffing and technology; and
(4)  Recommending best practices and potential legislative changes to improve 
fairness and accuracy in property assessments;
F.  Develop targeted support for long-term property owners who need support to age 
in place by:  
(1)  Studying states that have implemented property tax relief programs specifically 
for long-term homeowners; and
(2) Recommending which tax policies the State should adopt to prevent 
displacement and maintain affordability of elderly and low-income homeowners;
G.  Explore the use of the State's cash pool for property tax relief by:
(1) Researching how other states use state investment funds to support property tax 
relief programs; 
(2) Analyzing potential risks and benefits of using the State's cash reserves to 
provide long-term property tax relief; and 
(3)  Recommending whether a dedicated revenue stream should be created for this 
purpose and how it could be structured; and 
H.  Examine potential impacts of federal funding changes on property taxes in the State.
The task force shall engage in a data-driven analysis of the State's property tax system 
before making recommendations pursuant to this subsection.
6.  Assistance in collection of data.  The Department of Administrative and Financial 
Services, Bureau of Revenue Services and the Office of Tax Policy within the bureau shall 
provide assistance to the entity contracted with by the task force pursuant to subsection 5, 
paragraph A to ensure the entity obtains the required information. 
7.  Public input.  The task force may, as determined necessary by the chairs, solicit 
and consider public comment on the current property tax structure, current property tax 
relief efforts and the valuation and assessment process.
8.  Staff assistance.  The Legislative Council shall provide necessary staffing services 
or may contract for necessary staffing services for the task force, except that Legislative 
Council staff support is not authorized when the Legislature is in regular or special session.  
Upon request of the task force, the Office of the Attorney General, the office of the 
Secretary of State, the Office of Policy Innovation and the Future, the Department of 
Administrative and Financial Services, Bureau of Revenue Services, the Department of 
Economic and Community Development and office of the Treasurer of State shall provide 
additional information to the task force.  
9.  Report.  That, notwithstanding Joint Rule 353, no later than December 15, 2025, 
the task force shall submit a report that includes its findings and recommendations, 
including suggested legislation, to the Joint Standing Committee on Taxation.  The joint 
standing committee may report out a bill to the Second Regular Session of the 132nd 
Legislature based on the report.
10.  Additional funding sources.  Notwithstanding Joint Rule 353, the task force may 
apply for and receive funds, grants or contributions from public and private sources to 
support its activities.
Emergency clause.  In view of the emergency cited in the preamble, this legislation 
takes effect when approved.
SUMMARY
This bill:
1.  Increases the maximum property tax fairness credit, beginning with tax years 
beginning on or after January 1, 2025, from $1,500 to $2,000 for taxpayers under 65 years 
of age and from $2,000 to $2,500 for taxpayers 65 years of age and older; and
2.  Establishes the Real Estate Property Tax Relief Task Force. Using data collected at 
the municipal, county, state and national level, the task force is required to examine the 
assessment of property taxes and property tax relief programs and make recommendations 
for improving the process involved in determining, levying and paying property taxes and 
reducing the tax burden, including possible changes to the Constitution of Maine and other 
laws.  The membership of the task force includes Legislators, economists, tax experts, real 
estate professionals and representatives of low-income and older residents and is required 
to be geographically diverse.