Sec. 1. 36 MRSA c. 216 is enacted to read:

CHAPTER 216

LOCAL OPTION REAL ESTATE SALES TAX

§1891.__Definitions

As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.

1.__Eligible individual or family.__"Eligible individual or family" means an individual or family whose total adjusted gross income is less than 120% of the median income for the United States Department of Labor district in which the eligible property was sold.

2.__Eligible property.__"Eligible property" means single- family residential real property sold for more than $1,000,000.

3.__Participating municipality.__"Participating municipality" means a municipality that elects to impose a local option real estate sales tax pursuant to section 1892.

4.__Local option real estate sales tax.__"Local option real estate sales tax" means the real estate sales tax imposed by a participating municipality on eligible property pursuant to section 1892.

§1892.__Imposition and collection of local option real estate

sales tax

A participating municipality may impose a local option real estate sales tax of 1% on the sale of eligible property.__The local option real estate sales 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 section is in addition to the real estate transfer tax imposed pursuant to section 4641-A.

§1893.__Determination and payment of municipal share;

administrative costs

On the last day of each month, the register of deeds shall identify the amount of revenue under this chapter attributable to each participating municipality, based on the location of the properties being transferred and the amount of tax collected