HP0772, LD 1042, item 1, An Act To Exempt Disabled Veterans from Property Taxes in Accordance with Their Disability Ratings

An Act To Exempt Disabled Veterans from Property Taxes in Accordance with Their Disability Ratings

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 36 MRSA §683, sub-§1-C is enacted to read:

1-C. Disabled veterans. For property tax years beginning on or after April 1, 2020, a permanent resident of this State who is a veteran with a service-connected disability rated by the United States Department of Veterans Affairs at 30% or greater and who is eligible for an exemption under subsection 1 may elect to receive an exemption from taxation for a homestead equal to 50% of the just value of the homestead multiplied by the veteran's percentage disability rating. A veteran who elects to receive an exemption under this subsection is not eligible for the exemptions provided under subsections 1 and 1-B or the exemptions provided under sections 653 and 654-A.

Sec. 2. 36 MRSA §683, sub-§2, as amended by PL 2013, c. 416, §3, is further amended to read:

2. Exemption in addition to other exemptions. The Except as provided in subsection 1-C, the exemption provided in this subchapter is in addition to the exemptions provided in sections 653 and 654-A.

Sec. 3. 36 MRSA §685, sub-§2, as amended by PL 2017, c. 284, Pt. G, §2, is further amended to read:

2. Entitlement to reimbursement by the State; calculation. A municipality that has approved homestead exemptions under this subchapter may recover from the State:

A. For property tax years beginning before April 1, 2018, 50% of the taxes lost by reason of the exemptions under section 683, subsections 1 and 1-B; and

B. For property tax years beginning on or after April 1, 2018, 62.5% of the taxes lost by reason of the exemptions under section 683, subsections 1 and 1-B . ; and

C. For property tax years beginning on or after April 1, 2020, 75% of the taxes lost by reason of the exemption under section 683, subsection 1-C.

The municipality must provide proof in a form satisfactory to the bureau. The bureau shall reimburse the Unorganized Territory Education and Services Fund in the same manner for taxes lost by reason of the exemptions.

SUMMARY

This bill permits a veteran with a service-connected disability rated by the United States Department of Veterans Affairs at 30% or greater to choose to receive a homestead exemption equal to 50% of the just value of the homestead multiplied by the veteran's percentage disability rating instead of the current homestead exemption and exemptions for veterans and legally blind persons. The bill requires the State to reimburse municipalities for 75% of the revenue loss attributable to the new exemption.

HP0772 LD 1042	Session - 129th Maine Legislature		LR 1721 Item 1
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