Sec. 1. 36 MRSA §661, first ¶, as enacted by PL 1981, c. 133, §5, is amended to read:

As required by the Constitution of Maine, Article IV, Part 3, Section 23, the Treasurer of State shall reimburse each municipality not less than 50% of the property tax revenue loss suffered by that municipality during the previous calendar year as a result of statutory property tax exemptions or credits enacted after April 1, 1978. The property tax revenue loss shall must be determined pursuant to the following procedure.

Sec. 2. 36 MRSA §661, sub-§4-A is enacted to read:

4-A.__Payment for revenue loss from county property used but not leased by State.__Notwithstanding the provisions of subsection 4, the Treasurer of State shall pay to the municipality 100% of the portion of the property tax revenue loss that is attributable to exempt property owned by a county and used by the State if the county does not lease the property to the State.__The Treasurer of State shall pay the municipality by December 15th of the year following the year in which this property tax revenue was lost by the municipality.

SUMMARY

This bill requires the State to reimburse municipalities 100% for property tax revenue loss from county property in that municipality used but not leased by the State.