Whereas, some municipalities have experienced a significant decrease in municipal valuation; and

Whereas, there is a 2-year lag between a decrease in municipal valuation and its incorporation into state valuation; and

Whereas, this lag presents a significant problem for those municipalities' ability to raise sufficient revenues to fund municipal services; and

Whereas, the law provides a mechanism for municipalities to request an adjustment to their state valuation if the reduction in municipal valuation exceeds 5%; and

Whereas, the 5% threshold for requesting adjustments to state valuation is too high to provide relief to some municipalities; and

Whereas, it is necessary to change the threshold in time to permit some municipalities to seek an adjustment this year under a lower threshold; 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 §208-A, sub-§2, ķA, as enacted by PL 1997, c. 688, §1, is amended to read:

A. The municipality experiences an equalized net reduction in valuation of at least 2% from the equalized valuation that would apply without adjustment under this section. The net reduction must be at least 2% for valuations based on the status of property on April 1, 1998 and 5% for valuations in subsequent years;

Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.