An Act to Provide Property Tax Stabilization for Older Maine Residents

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132nd MAINE LEGISLATURE
FIRST REGULAR SESSION-2025
Legislative Document No. 559
S.P. 238 In Senate, February 25, 2025
An Act to Provide Property Tax Stabilization for Older Maine
Residents
Received by the Secretary of the Senate on February 19, 2025. Referred to the Committee
on Taxation pursuant to Joint Rule 308.2 and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator BAILEY of York.
Cosponsored by Senators: CURRY of Waldo, NANGLE of Cumberland, RAFFERTY of York,
RENY of Lincoln, Representatives: DOUDERA of Camden, STOVER of Boothbay.

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1Be it enacted by the People of the State of Maine as follows:
2Sec. 1. 36 MRSA §1822 is enacted to read:
3§1822. Municipal local option sales tax on prepared food and lodging; funding for
4stabilization of property taxes for seniors
51. Definitions. As used in this section, unless the context otherwise indicates, the
6 following terms have the following meanings.
7 A. "Local option sales tax" means a sales tax imposed pursuant to subsection 2.
8 B. "Participating municipality" means a municipality that has imposed a local option
9 sales tax pursuant to this section.
102. Authorization to impose local option sales tax. A municipality by referendum
11 conducted pursuant to subsection 8 may impose a local option sales tax of 1% on the value
12 of prepared food and rental of living quarters in any hotel, rooming house or tourist or
13 trailer camp.
143. Local option sales tax limited to prepared food and lodging. A municipality
15 may not impose a local option sales tax on the value of prepared food or rental of living
16 quarters of any hotel, rooming house or tourist or trailer camp not subject to tax pursuant
17 to section 1811.
184. Notify State Tax Assessor. A participating municipality shall notify the assessor
19 at least 90 days before the local option sales tax is effective.
205. Payment of revenue. A retailer in a participating municipality shall pay the revenue
21 from a local option sales tax at the time and in the manner provided in section 1951-A for
22 the payment of state sales tax revenue. The tax is subject to the same enforcement
23 provisions, interest, penalties and administrative actions as other taxes assessed under this
24 Part.
256. Distribution of revenue. Quarterly, the assessor shall identify the amount of
26 revenue attributable to each participating municipality under this section, subtract the costs
27 of administering this section and certify the net amount for that municipality to the
28 Treasurer of State for distribution pursuant to this subsection. From the net amount
29 certified for a municipality under this subsection, the Treasurer of State shall make monthly
30 payments to the participating municipality, which may only use the revenue to offset the
31 loss of revenue from property taxes as a result of a program adopted pursuant to section
32 6236.
33 For purposes of this subsection, "costs of administering this section" means the lesser of
34 the actual cost to the assessor of administering this section and 2% of the total revenue
35 generated by a local option sales tax.
367. Effect on revenue sharing and other state aid programs. Revenue received
37 pursuant to subsection 5 may not be considered to be receipts from the taxes imposed under
38 this Part for the purpose of transfers to the Local Government Fund under Title 30-A,
39 section 5681. Revenue received pursuant to subsection 5 may not be used to reduce or
40 eliminate any funding otherwise due a municipality under any provision of law providing
41 aid to the municipality, including, but not limited to, aid for schools, roads, public
42 assistance or jails.
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18. Referendum. The question of whether to impose a local option sales tax must be
2 submitted to the legal voters of a municipality that seeks to impose the local option sales
3 tax. The referendum question must indicate the rate of the local option sales tax.
4 The petition process and voting must be held and conducted in accordance with Title 30-A,
5 sections 2528, 2529 and 2532 even if the municipality has not accepted the provisions of
6 Title 30-A, section 2528. The voting at elections must be held and conducted in accordance
7 with Title 21-A.
8Sec. 2. 36 MRSA §6236 is enacted to read:
9§6236. Municipal authority; stabilization of property taxes for seniors
10 The legislative body of a municipality may by ordinance adopt a program to stabilize
11 the property taxes of seniors who have homesteads in the municipality. The program
12 adopted by the municipality must meet, at a minimum, the requirements established in this
13 section. A municipality may impose eligibility requirements stricter than those established
14 in this section.
151. Definitions. As used in this section, unless the context otherwise indicates, the
16 following terms have the following meanings.
17 A. "Eligible homestead" means a homestead occupied by an eligible individual who is
18 eligible for a homestead exemption under chapter 105, subchapter 4-B for the property
19 tax year for which the individual is requesting stabilization.
20 B. "Eligible individual" means an individual who, on April 1st of the property tax year
21 for which the individual is requesting stabilization:
22 (1) Meets a minimum age requirement established by the municipality, as long as
23 that minimum is not less than 62 years of age; and
24 (2) Is a permanent resident of the State as defined in section 681, subsection 4 and
25 has owned a homestead in the State for at least 10 years.
26 C. "Homestead" has the same meaning as under section 681, subsection 2.
27 D. "Stabilize" means to maintain the property tax billed to an eligible individual for
28 the individual's eligible homestead at the amount billed for that homestead for the
29 property tax year preceding the property tax year for which the individual is requesting
30 stabilization.
312. Application for stabilization. A municipality adopting a program pursuant to this
32 section shall require an eligible individual to apply by December 1st to the municipality in
33 which the individual's homestead is located requesting that the municipality stabilize the
34 property tax assessed on that individual's homestead for the property tax year beginning on
35 April 1st following the submission of the application. A new application is required for
36 each year for which stabilization is requested. A municipality may require an eligible
37 individual to apply for relief under other applicable property tax assistance exemptions and
38 programs, including, but not limited to, the Maine resident homestead property tax
39 exemption under chapter 105, subchapter 4-B and the Maine Residents Property Tax
40 Program, in order to decrease the amount of property taxes to be stabilized.
413. Stabilization for eligible individual. If a municipality determines that an applicant
42 for stabilization under subsection 2 is an eligible individual and that the individual's
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43 homestead is an eligible homestead, the municipality shall stabilize the property tax on the
44 individual's homestead for the property tax year for which stabilization was requested.
34. Offset of revenue loss. A municipality that has imposed a local option sales tax
4 pursuant to section 1822 may only use the revenue received pursuant to section 1822,
5 subsection 6 to offset the loss of revenue from property taxes as a result of the program
6 adopted pursuant to this section and for no other purpose.
75. Repeal of program. A municipality that has adopted a program under this section
8 may repeal it through the same procedure by which the program was adopted.
9SUMMARY
10 This bill allows a municipality to adopt by ordinance a property tax stabilization
11 program for senior residents of that municipality. A municipality adopting such an
12 ordinance sets a minimum age for participation by residents of the municipality of not less
13 than 62 years of age. The person must also be a permanent resident of the State and have
14 owned a homestead in the State for at least 10 years. A municipality may adopt stricter
15 eligibility requirements.
16 The bill also allows a municipality, by referendum, to adopt a local option sales tax of
17 1% on the value of prepared food and rental of living quarters in any hotel, rooming house
18 or tourist or trailer camp. The revenue generated by the local option sales tax may only be
19 used to offset the loss of revenue from the property tax stabilization program for senior
20 residents of that municipality.
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