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ME LD1112

ME LD1112
RESOLUTION, Proposing an Amendment to the Constitution of Maine Requiring Not Less Than 90 Percent State Reimbursement for Residential Real Estate Property Tax Exemptions and to Establish a Minimum Homestead Exemption


summary

Introduced
03/18/2025
In Committee
03/18/2025
Crossed Over
Passed
Dead
06/11/2025

Introduced Session

Potential new amendment
132nd Legislature

Bill Summary

This resolution proposes to amend the Constitution of Maine to require the Legislature to reimburse municipalities for not less than 90% of the lost property tax revenue associated with residential real estate exemptions extended to veterans of the Armed Forces of the United States and persons who are legally blind and for qualifying homesteads of permanent residents of this State. The resolution also establishes the minimum homestead exemption at $50,000, which must be adjusted annually by the percentage change in the consumer price index, or similar inflationary index. The resolution also provides that, at a minimum, no less than 5% of state sales and income tax revenues must be shared with municipalities and protects future increases in the percentage of state sales and income tax revenues distributed to municipalities.

AI Summary

This bill proposes a constitutional amendment in Maine that would require the state legislature to reimburse municipalities for at least 90% of property tax revenue lost due to specific residential real estate tax exemptions, including exemptions for veterans, legally blind individuals, and qualifying homesteads of permanent residents. Starting April 1, 2026, the homestead exemption would be set at a minimum of $50,000 and would be adjusted annually based on changes in the consumer price index. The amendment also mandates that municipalities receive no less than 5% of state sales and income tax revenues, with a provision protecting any future increases in the percentage of tax revenues distributed to municipalities. If approved by voters in a November statewide referendum, this constitutional amendment would ensure more substantial financial support for local governments and provide greater tax relief for specific groups of homeowners, with built-in protections against potential future reductions in municipal funding.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

House: C-A (H-607) - House: C-A (H-607) (on 03/11/2026)

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