SP0024
LD 76
Session - 127th Maine Legislature
C "A", Filing Number S-202, Sponsored by
LR 407
Item 2
Bill Tracking, Additional Documents Chamber Status

Amend the bill by striking out everything after the enacting clause and before the summary and inserting the following:

Sec. 1. 36 MRSA §5219-KK, sub-§1, ¶E,  as enacted by PL 2013, c. 551, §3, is amended to read:

E. "Rent constituting property taxes" means 15% 20% of the gross rent actually paid in cash or its equivalent during the tax year solely for the right of occupancy of a homestead in the State. For the purposes of this paragraph, "gross rent" means rent paid at arm's length solely for the right of occupancy of a homestead, exclusive of charges for any utilities, services, furniture, furnishings or personal property appliances furnished by the landlord as part of the rental agreement, whether or not expressly set out in the rental agreement. If the landlord and tenant have not dealt with each other at arm's length, and the assessor is satisfied that the gross rent charged was excessive, the assessor may adjust the gross rent to a reasonable amount for purposes of this section.

Sec. 2. 36 MRSA §5219-KK, sub-§2,  as enacted by PL 2013, c. 551, §3, is amended to read:

2. Credit.  A resident individual is allowed a credit against the taxes imposed under this Part in an amount equal to 50% of the amount by which the benefit base for the resident individual exceeds 6% 5% of the resident individual's income. The credit may not exceed $600 for resident individuals under 65 years of age as of the last day of the taxable year or $900 for resident individuals 65 years of age and older as of the last day of the taxable year. In the case of married individuals filing a joint return, only one spouse is required to be 65 years of age or older to qualify for the $900 credit limitation. In the case of resident married individuals filing separate returns, each of whom claims the credit on the same homestead, the credit for each spouse may not exceed $300 if, for the taxable year, neither spouse was a resident individual 65 years of age or older or $450 if, for the taxable year, at least one spouse was 65 years of age or older.’

summary

This amendment replaces the bill and amends the property tax fairness credit by increasing the percentage of rent constituting property taxes from 15% to 20% and lowering the property tax as a percentage of the income threshold above which a credit may be available from 6% of income to 5% of income.


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