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ME LD1798

ME LD1798
An Act to Increase Revenue Sharing and to Control Property Taxes


summary

Introduced
04/24/2025
In Committee
04/24/2025
Crossed Over
Passed
Dead
05/21/2025

Introduced Session

132nd Legislature

Bill Summary

This bill provides additional state-municipal revenue sharing to a municipality that has adopted and implemented a program to impose limits of increases of no more than 2% annually on the imposition of property taxes on residents who are at least 65 years of age and who qualify for the Maine resident homestead property tax exemption. The amount of the additional distribution is 20% of the amount that the municipality would receive before the additional distribution.

AI Summary

This bill modifies the existing Local Government Fund distribution rules to provide an additional financial incentive for municipalities that implement property tax increase limits for senior residents. Specifically, municipalities will now be eligible for a 20% boost in their state revenue sharing funds if they adopt a program that caps annual property tax increases at 2% for homeowners who are 65 years or older and qualify for the Maine resident homestead property tax exemption. The existing distribution method, which allocates funds based on a municipality's population and property tax burden, remains in place. The bill aims to encourage local governments to provide tax relief for senior citizens by offering a financial reward in the form of increased state revenue sharing. The proposed changes are to be made in Title 30-A, Maine Revised Statutes Annotated (MRSA), Section 5681, which governs the distribution of funds from the Local Government Fund.

Committee Categories

Budget and Finance

Sponsors (7)

Last Action

Pursuant to Joint Rule 310.3 Placed in Legislative Files (DEAD) (on 05/21/2025)

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