Sec. 1. 36 MRSA §4641, sub-§§2-B to 2-D are enacted to read:

2-B.__Eligible municipality.__"Eligible municipality" means a municipality or organized municipal township.__"Eligible municipality" does not include a county or a subsidiary unit of government such as an unorganized township, village, special district or school district.

2-C.__Local option real estate transfer tax.__"Local option real estate transfer tax" means the real estate transfer tax imposed by an eligible municipality pursuant to section 4642.

2-D.__Participating municipality.__"Participating municipality" means an eligible municipality that has imposed a local option real estate transfer tax pursuant to section 4642.

Sec. 2. 36 MRSA §4642 is enacted to read:

§4642. Municipal local option real estate transfer tax

1.__Imposition and collection of local option real estate transfer tax.__An eligible municipality may impose a local option real estate transfer tax on each deed by which any real property the value of which is greater than $1,000,000 is transferred.__ The rate of tax may not exceed .2% of the value of the property transferred.__The local option real estate transfer tax must be collected in the same manner and at the same time as the tax collected pursuant to section 4641-B, subsection 1.__The tax imposed pursuant to this subsection is in addition to the real estate transfer tax imposed pursuant to section 4641-A.

2.__Determination and payment of municipal share; administrative costs.__Each month, the register of deeds shall identify the amount of revenue under this section attributable to each participating municipality, based on the location of the property being transferred, subtract the costs of administering this section and certify the net amount due each municipality to the county treasurer.__Each county treasurer shall, on or before the 10th day of each month, pay over to each municipality that municipality's share of the tax collected pursuant to this section.__If the tax collected is not paid over by the 10th day of the month, the municipality may impose interest pursuant to section 186. The amount subtracted for the administration of this section may not exceed 2% of the total taxes collected under this section.

3.__Use of revenue.__Each participating municipality shall deposit the revenue received pursuant to subsection 2 in a segregated account. A municipality shall determine its annual