Sec. 1. 30-A MRSA §709 is enacted to read:

§709.__County real estate transfer tax

The county commissioners may establish the county rate of the real estate transfer tax imposed pursuant to Title 36, section 4641-A.__In order to establish or change a county real estate transfer tax, the county commissioners must hold a public hearing in the county before December 31st and publish a notice of the hearing at least 10 days before the hearing in a newspaper of general circulation within the county.__Written notice of the proposed real estate transfer tax must be sent by mail or delivered in person to the State Tax Assessor and the clerk of each municipality in the county at least 10 days before the hearing.__The municipal clerk shall notify the municipal officers of the receipt of the written notice.

Sec. 2. 30-A MRSA §4852, sub-§2, ķA-1, as enacted by PL 1989, c. 581, §11, is amended to read:

A-1. In addition to the uses provided in paragraph A, the following may be used to pay the administrative costs of the authority's programs:

(1) No more than 3% of the money in the fund, other than amounts derived from the dedication of the tax on real estate transfers established in Title 36, chapter 711-A;

(2) Any earnings from the fund; and

(3) Any recoveries to the fund, including, but not limited to, repayments, recaptures of principal and recaptures of interest owed.

Sec. 3. 36 MRSA §4641-A, sub-§1, ķA, as enacted by PL 2001, c. 559, Pt. I, §3 and affected by §15, is amended to read:

A. The rate of the tax is $2.20 for each $500 or fractional part of $500 of the value of the property transferred or the tax rate established by the county commissioners pursuant to Title 30-A, section 709.

Sec. 4. 36 MRSA §4641-A, sub-§2, ķA, as enacted by PL 2001, c. 559, Pt. I, §3 and affected by §15, is amended to read: