4.__Effect on revenue sharing and other state-aid programs. Revenue received pursuant to subsection 2 may not be considered to be receipts from the taxes imposed under this Part for the purpose of transfers to the Local Government Fund under Title 30- A, section 5681.__Revenue received pursuant to subsection 2 may not be used to reduce or eliminate any funding otherwise due the participating municipality under any provision of law providing aid to the participating municipality, including, but not limited to, aid to schools, roads, public assistance or jails.

5.__Referendum.__The question of whether to impose a local option real estate transfer tax must be submitted to the legal voters of an eligible municipality that seeks to impose the local option real estate transfer tax.

The petition process and the voting at elections held in cities and towns must be conducted in accordance with Title 30-A, sections 2528, 2529 and 2532 even if the municipality has not accepted the provisions of section 2528.__The voting at elections held in municipalities must be conducted in accordance with Title 21-A.__The municipal clerk shall make a return of the results, certify the results and send them to the Secretary of State. The Secretary of State shall forward the results to the register of deeds for that municipality.

The local option sales and use tax may be discontinued by referendum conducted in the same manner as the referendum adopting the tax under this section.

9.__Effective date of tax.__The tax authorized by this section takes effect 120 days after the municipal referendum vote under subsection 5 if it is accepted by a majority of the local voters voting at the election and the total number of votes cast equals or exceeds 20% of the total number of votes cast in that municipality in the most recent gubernatorial election.

SUMMARY

This bill allows a municipality to impose a local option real estate transfer tax of up to .2% on property valued at