Current Relevant Bills in Maine State Legislature

Updated 4/29/25

LD 1621 An Act to Allow Municipalities to Use Tax Increment Financing Revenues to Support Lake Restoration and Protection Activities (Sponsored by Rep. Bridgeo of Augusta)

This bill allows municipalities to use tax increment financing revenue for lake restoration and protection projects.

LD 1630 An Act to Amend the Open Space Tax Law (Sponsored by Rep. Sayre of Kennebunk)

This bill: (1) increases the amount of the reduction of property taxes that land enrolled as open space is eligible for from 20% to 45% and reduces the additional reduction of property taxes that permanently protected open space land is eligible for from 30% to 25%; (2) eliminates the additional percentage reduction in property taxes for forever wild open space land and managed forest open space land; and (3) provides an additional 25% reduction for enrolled land governed by an approved wildlife habitat management plan or forest climate resilience and carbon management plan.

The bill also defines: (1) a wildlife habitat management plan as a written document prepared by a licensed professional forester or a wildlife biologist from the Department of Inland Fisheries and Wildlife that: (a) describes activities to maintain or enhance wildlife habitat on a parcel; (b) identifies and describes specific activities, including silvicultural and other practices to meet the plan’s goals; and (c) includes a map of forest types or natural community types and locations of all water bodies and wetlands; and (2) a forest climate resilience and carbon management plan as a written document prepared by a licensed professional forester that: (a) describes activities to enhance, on forested land or farm woodland, climate resilience or the storage or sequestration of forest carbon; (b) identifies and describes specific activities, to meet the plan’s objectives; (c) includes schedules, specific forest stand locations and acres and silvicultural prescriptions for recommended practices; and (c) includes a forest type map and locations of all water bodies and wetlands. The bill allows a nonprofit landowner to apply for classification for more than an aggregate total of 15,000 acres under the laws governing the valuation of open space land.

LD 1770 An Act to Provide Immediate and Long-term Property Tax Relief to Maine Households (Emergency) (Sponsored by President Daughtery of Cumberland County)

 This emergency bill creates the 13-member Real Estate Property Tax Relief Task Force, including a member with expertise in assessing property and two municipal officials with expertise in municipal government, taxation, finances or property valuation, to contract with an entity for research and analytical support, with the goal of determining the source of the problems with the current system of property taxation, who is most negatively affected by the current system and how those persons are negatively affected. The task force is authorized to meet at least four, but no more than eight times, and by December 15, 2025, to submit a report to the Joint Standing Committee on Taxation, which is authorized to report out legislation in 2026.

Beginning on January 1, 2025, the bill also increases the property tax fairness credit from $1,500 to $2,000 for property taxpayers under 65 years of age and from $2,000 to $2,500 for taxpayers 65 years of age and older.

LD 1795 An Act to Change the Calculation for Municipal Service Charges for Tax-exempt Organizations (Sponsored by Sen. Moore of Washington County)

Beginning on January 1, 2027, this bill authorizes municipalities to impose a service charge on the owner of property exempt from taxation equal to the actual cost of providing municipal services to the property, which is defined as all services other than education and welfare.

The bill also provides that the charge levied by a municipality may not exceed 20% of the assessed value of the property.

LD 1798 An Act to Increase Revenue Sharing and to Control Property Taxes (Sponsored by Sen. Baldacci of Penobscot County)

This bill provides additional revenue sharing to municipalities that adopt and implement a program to impose a no more than 2% limit on the property taxes assessed on homes owned by residents who are at least 65 years of age and qualify for the homestead exemption. The additional distribution is 20% of the amount that the municipality would receive before the additional distribution.

LD 1144 An Act to Reinstate the Property Tax Stabilization Program (Sponsored by Sen. Libby of Cumberland County)

This bill reinstates the property tax stabilization program and as of April 1, 2026, allows residents who are 65 years of age or older and who have owned a home in Maine for at least 10 years to apply for the benefit. The bill amends the original program by: (1) limiting the stabilization to $900,000 of the home’s assessed value; (2) clarifying that the homeowner can only have the property tax stabilized on one homestead in a property tax year; and (3) allowing municipalities to file for state reimbursement for administrative expenses. The bill retains the provision requiring 100% state reimbursement for lost property tax revenue.

LD 1168 An Act to Amend the Law Regarding the Current Use Valuation of Certain Working Waterfront Land with Respect to Commercial Boat Yards (Sponsored by Rep. Faulkingham of Winter Harbor)

This bill amends the tax laws relating to the current use valuation of certain working waterfront land to clarify that working waterfront land includes commercial boat yards, which are defined as commercial facilities that lease storage, docking or mooring space to watercraft and are used primarily or predominantly by persons engaged in commercial fishing activities.

LD 1206 An Act to Control Property Taxes by Increasing the Percentage of the Business Equipment Tax Exemption That Municipalities May Recover (Sponsored by Sen. Tepler of Sagadahoc County)

This bill amends provisions governing the business equipment tax exemption by increasing from 50% to 60% the amount of lost property tax revenues a municipality may recover from the state for the property tax year beginning on April 1, 2026. The bill also gradually increases the reimbursement rate until it is at 80% for property tax years beginning on or after April 1, 2030

LD 559 An Act to Provide Property Tax Stabilization for Older Maine Residents (Sponsored by Sen. Bailey of York County)

This bill authorizes municipalities to impose a 1% sales tax on taxable prepared food and lodging sales for the sole purpose of funding a local property tax stabilization program for seniors. The tax assessed is payable to the state, which may retain no more than 2% of the revenue generated to cover administrative costs and remit the remaining revenues to the generating community monthly. The bill also establishes the parameters associated with the stabilization program, which at a minimum requires eligible participants: (1) to be at least 62 years of age; (2) have owned a homestead in Maine for at least 10 years; and (3) apply for the program annually. Municipalities are authorized to adopt stricter eligibility requirements.

LD 570 An Act to Provide an Additional Maine Resident Homestead Property Tax Exemption Based on Income (Sponsored by Sen. Reny of Lincoln County)

Beginning on April 1, 2026, this bill provides an additional $75,000 homestead exemption, for a total of $100,000, to homeowners whose federal adjusted gross income in the previous year was less than: (1) $200,000 for joint filers; (2) $150,000 for heads household; and (3) 100,000 for individual filers.

LD 934 An Act to Provide 100 Percent of the Maine Resident Homestead Property Tax Exemption Amount to Seniors and Veterans (Sponsored by Rep. Wood of Greene)

For property tax years beginning on or after April 1, 2026, this bill extends the full amount of the homestead exemption, currently $25,000, to homeowners who are either 65 years of age or older or veterans of the U.S. Armed Services, regardless of the municipality’s assessment ratio. The bill also directs the state to reimburse municipalities for 100% of the lost property tax revenue associated with the proposed change.