Municipal leaders ask Maine tax committee to enshrine homestead reimbursements and 5% revenue sharing in constitution

Amanda Campbell, representing the Maine Municipal Association's 70‑member Legislative Policy Committee, told the Joint Standing Committee on Taxation that LD 1112 is “in strong support” of municipal priorities and property‑tax relief. ‘‘This bill accomplishes 3 important tasks,’’ Campbell said in testimony delivered at the public hearing.

The proposal would (1) raise the state reimbursement to municipalities for lost revenue from the homestead, veteran and blind exemptions to 90%; (2) increase the homestead exemption from $25,000 to $50,000; and (3) enshrine a constitutional floor guaranteeing that no less than 5% of combined state sales and income tax revenue be shared with municipalities.

‘‘This bill supports both municipalities and property taxpayers,’’ Campbell said, adding that revenue sharing has been reduced or repurposed in recent years and that enshrining 5% in the Constitution would prevent future transfers away from municipalities.…