Sec. 1. 36 MRSA §683, sub-§1, as enacted by PL 1997, c. 643, Pt. HHH, §3 and affected by §10, is amended to read:

1. Exemption amount. The estate up to the just value of $7,000 $15,000 of the homestead of a permanent resident of this State who has owned a homestead in this State for the preceding 12 months is exempt from taxation except for assessments for special benefits. In determining the local assessed value of the exemption, the assessor shall multiply the amount of the exemption by the ratio of current just value upon which the assessment is based as furnished in the assessor's annual return pursuant to section 383. If the title to a homestead is held by the applicant jointly or in common with others, the exemption may not exceed $7,000 $15,000 of the just value of the homestead, but may be apportioned among the owners who reside on the property to the extent of their respective interests. A municipality responsible for administering the homestead exemption has no obligation to create separate accounts for each partial interest in a homestead owned jointly or in common. For taxes based on the status of property after 2002, the just value of a homestead that may be exempted increases by $1,000 annually from $15,000 to a maximum of $25,000.

SUMMARY

This bill increases the homestead property tax exemption from $7,000 to $15,000 and increases it annually in increments of $1,000 until a maximum exemption of $25,000 is achieved.