Bill
Bill > LD1885
ME LD1885
ME LD1885An Act to Create a State Property Tax Directed Toward 2nd Homes for the Purposes of Funding Education, Early Childhood Programs and the Land for Maine's Future Trust Fund
summary
Introduced
05/01/2025
05/01/2025
In Committee
05/01/2025
05/01/2025
Crossed Over
Passed
Dead
05/13/2025
05/13/2025
Introduced Session
132nd Legislature
Bill Summary
This bill creates the statewide property tax to impose a tax of 5 mills of the assessed value of real estate that is not exempt from taxation. This bill also establishes an exemption from the statewide property tax of the just value up to $1,000,000 for homesteads that are eligible for the Maine homestead property tax exemption, including being occupied by a permanent resident of the State as that person's permanent residence. The statewide property tax exemption applies only to the taxes assessed for the statewide property tax. The State Tax Assessor is directed to administer the statewide property tax in the same manner and under the same constraints as currently done for real property in the unorganized territory. The bill also creates 2 new funds, the Fund for Essential Programs and Services and the Early Childhood Education Fund. The Fund for Essential Programs and Services receives 50% of the revenue from the statewide property tax, which must be used to provide funds to school administrative units that do not achieve the annual target for the state share percentage of the statewide adjusted total cost of the components of essential programs and services, if that shortage is the result of a municipality within that school administrative unit having a higher poverty rate than the median poverty rate for the State and a lower median income rate than the median income rate for the State. The Early Childhood Education Fund receives 40% of the revenue from the statewide property tax, which must be used to provide funds for the purpose of expanding or developing early childhood education programs, as determined by the Commissioner of Education. The remaining 10% of revenue is deposited in the Land for Maine's Future Trust Fund.
AI Summary
This bill creates a new statewide property tax of 5 mills (0.5%) on the full valuation of real estate that is not exempt, specifically targeting second homes and non-primary residences. The tax will be implemented starting April 1, 2026, and is in addition to existing local property taxes. Homesteads occupied by permanent Maine residents can receive an exemption of up to $1,000,000 in property value. The revenue from this tax will be distributed across three funds: 50% will go to the Fund for Essential Programs and Services to support school administrative units in lower-income areas, 40% will be allocated to the Early Childhood Education Fund to expand and develop early childhood education programs, and 10% will be deposited in the Land for Maine's Future Trust Fund. Taxpayers will be notified by August 1st each year and must pay the tax by October 1st, with interest applied for late payments. The State Tax Assessor will administer the tax using similar processes to those used for property taxes in unorganized territories. The bill includes provisions for annual reporting to the Legislature about the tax's revenue generation and distribution, with the goal of providing additional funding for education and land conservation in Maine.
Committee Categories
Budget and Finance
Sponsors (5)
Last Action
Pursuant to Joint Rule 310.3 Placed in Legislative Files (DEAD) (on 05/13/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1885&snum=132 |
| BillText | https://legislature.maine.gov/legis/bills/getPDF.asp?paper=HP1256&item=1&snum=132 |
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