Bill > LD1729

This bill aims to gradually increase state reimbursement to municipalities for revenue lost due to the Maine Resident Homestead Property Tax Exemption. Currently, municipalities are reimbursed 76% of lost tax revenue from this exemption. The bill introduces a mechanism to incrementally raise the reimbursement rate by 3 percentage points each year, starting in 2026, until municipalities are fully (100%) reimbursed, which would occur in 8 years. Specifically, the bill amends existing law to modify the reimbursement percentages for property tax years beginning April 1, 2024, and April 1, 2025, and establishes a new provision for annual 3 percentage point increases beginning April 1, 2026. The Maine Resident Homestead Property Tax Exemption allows eligible homeowners to receive a reduction in their property taxes, and this bill ensures that municipalities are more comprehensively compensated for the revenue they lose as a result of this exemption.

Budget and Finance

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1729&snum=132