Sec. 1. 36 MRSA §459 is enacted to read:

§459.__State property tax

1.__Tax imposed.__A state tax is imposed on the just value of all residential real property in this State.__Just value and ownership of the property must be determined as of the April 1st preceding the assessment.__The rate of tax is:

A.__For assessments made in 2004, 4 mills;

B.__For assessments made in 2005, 5 mills;

C.__For assessments made in 2006, 6 mills;

D.__For assessments made in 2007, 7 mills;

E.__For assessments made in 2008, 8 mills;

F.__For assessments made in 2009, 9 mills; and

G.__For assessments made in 2010 and subsequent years, 10 mills.

2.__Assessment.__The State Tax Assessor shall assess a tax on the just value of all residential real property in this State.

3.__Procedure.__The tax on residential real property must be assessed and paid in accordance with this subsection.

A.__The State Tax Assessor shall make the assessment by May 30th of each year.

B.__The tax assessment must be paid no later than the August 15th following the date of assessment.

4.__Exemption.__The estate up to the just value of $1,000,000 of the homestead of a permanent resident of this State who has owned a homestead in this State for the preceding 12 months is exempt from taxation under this section.__In determining the local assessed value of the exemption, the State Tax Assessor shall multiply the amount of the exemption by the ratio of current just value upon which the assessment is based as furnished in the municipal assessor's annual return pursuant to section 383.__If the title to a homestead is held by the applicant jointly or in common with others, the exemption may not exceed $1,000,000 of the just value of the homestead, but may be apportioned among the owners who reside on the property to the