Sec. 10. Application. Those sections of this Act that repeal the Maine Revised Statutes, Title 36, chapter 105, subchapter 4-B and Title 36, chapter 907 and that enact Title 36, chapter 907-A apply to property taxes based on the status of property on or after April 1, 2004.

Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.

SUMMARY

This bill creates the Maine Homestead Property Tax Relief Program by incorporating the current Maine Residents Property Tax Program, commonly referred to as the "circuit breaker" program, and the homestead property tax exemption program. The new program applies to tax years beginning April 1, 2004. Taxpayers will receive property tax relief payments beginning September 30, 2004.

Under the new program:

1. Payments are provided directly to Maine resident property taxpayers;

2. All Maine resident property owners, regardless of income level, receive a homestead property tax relief payment equivalent to a $14,000 property tax exemption based on local valuation and the local mil rate as long as the owner does not owe any back taxes on the claimed property;

3. The maximum benefit payment for low-income nonelderly households is increased to $1,250 from the current $1,000;

4. The percentage of rent considered payment for property taxes is increased to 20% from the current 18% for nonelderly households; for elderly households, rent constituting payment for property taxes is set at 25%;