HP0404, LD 560, item 4, Document Text

Amend the amendment by striking out all of section 3 and inserting the following:

‘Sec. 3. 36 MRSA §683, sub-§§3 and 4, as amended by PL 2017, c. 284, Pt. G, §1, are further amended to read:

3. Effect on state valuation. For property tax years beginning before April 1, 2018, 50% of the just value of all the homestead exemptions under this subchapter must be included in the annual determination of state valuation under sections 208 and 305. For property tax years beginning on or after April 1, 2018, 62.5% of the just value of all the homestead exemptions under this subchapter must be included in the annual determination of state valuation under sections 208 and 305. For property tax years beginning on or after April 1, 2020, 100% of the just value of all the homestead exemptions under this subchapter provided for the first year a homestead exemption is received under this subchapter must be included in the annual determination of state valuation under sections 208 and 305; after the first year, the percentage is 62.5% of the just value.

4. Property tax rate. For property tax years beginning before April 1, 2018, 50% of the just value of all the homestead exemptions under this subchapter must be included in the total municipal valuation used to determine the municipal tax rate. For property tax years beginning on or after April 1, 2018, 62.5% of the just value of all the homestead exemptions under this subchapter must be included in the total municipal valuation used to determine the municipal tax rate. For property tax years beginning on or after April 1, 2020, 100% of the just value of all the homestead exemptions under this subchapter provided for the first year a homestead exemption is received under this subchapter must be included in the annual determination of state valuation under sections 208 and 305; after the first year, the percentage is 62.5% of the just value. The municipal tax rate as finally determined may be applied to only the taxable portion of each homestead qualified for that tax year.

Sec. 4. 36 MRSA §685, sub-§2, as amended by PL 2017, c. 284, Pt. G, §2, is further amended to read:

2. Entitlement to reimbursement by the State; calculation. A municipality that has approved homestead exemptions under this subchapter may recover from the State:

A. For property tax years beginning before April 1, 2018, 50% of the taxes lost by reason of the exemptions under section 683, subsections 1 and 1-B; and

B. For Except as provided in paragraph C, for property tax years beginning on or after April 1, 2018, 62.5% of the taxes lost by reason of the exemptions under section 683, subsections 1 and 1-B . ; and

C. Notwithstanding paragraph B, for property tax years beginning on or after April 1, 2020, 100% of the taxes lost by reason of the exemptions provided to permanent residents for the first year for which an exemption is received under this subchapter.

The municipality must provide proof in a form satisfactory to the bureau. The bureau shall reimburse the Unorganized Territory Education and Services Fund in the same manner for taxes lost by reason of the exemptions.

Sec. 5. Appropriations and allocations. The following appropriations and allocations are made.

ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF

Homestead Property Tax Exemption Reimbursement 0886

Initiative: Provides funding to allow homeowners who have not owned a homestead for the preceding 12 months to claim a homestead property tax exemption and to reimburse municipalities 100% of the lost property tax revenue for the first year for such homeowners.

GENERAL FUND 2019-20 2020-21

All Other
$0 $1,600,000

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GENERAL FUND TOTAL $0 $1,600,000

’

Amend the amendment by relettering or renumbering any nonconsecutive Part letter or section number to read consecutively.

summary

Committee Amendment "A" allows permanent residents to participate in the homestead property tax exemption without having to wait a year. This amendment increases the state reimbursement rate of property taxes lost due to such participation to 100% for the first year; thereafter, the rate of state reimbursement returns to the current rate of 62.5%.

FISCAL NOTE REQUIRED

(See attached)

HP0404 LD 560	Session - 129th Maine Legislature H "A" to C "A", Filing Number H-194, Sponsored by Grohoski		LR 2224 Item 4
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GENERAL FUND	2019-20	2020-21
All Other	$0	$1,600,000

GENERAL FUND TOTAL	$0	$1,600,000