Sec. J-2. 36 MRSA §652-A is enacted to read:

§652-A.__Application schedules

An organization or institution claiming exemption under section 652 must file a written application containing proof of entitlement to the exemption for each parcel claimed.__The application must be filed on or before April 1st in the year for which the exemption is first claimed.__If granted, the exemption continues in effect until the basis for entitlement changes.__The organization or institution holding the exemption must report any change in status that would materially affect its continuing entitlement to the exemption.__ Assessors may require submission of a new application as often as every 3 years or whenever it comes to their attention that the basis for the entitlement may have changed.

Sec. J-3. 36 MRSA §709-C is enacted to read:

§709-C.__Service charges

The assessors shall deduct from the total amount required to be assessed under this subchapter an amount equal to the amount of service charges to be levied under section 652 for the municipal fiscal year.

SUMMARY

This bill provides for comprehensive reform of the State's tax structure.

Part A repeals the homestead property tax exemption and provides property tax relief for the homestead property of persons with a high property tax burden by expanding the Maine Residents Property Tax Program to provide benefits equal to 80% of the property taxes for a homestead that exceed 4% of the taxpayer's income. The amount of rent constituting property taxes accrued for a nonelderly household is increased from 18% to 20% of gross rent. The income eligibility requirements are repealed.