An Act To Provide Incentives for Municipal Cooperation and Shared Services
Sec. 1. 30-A MRSA §2201, as amended by PL 2009, c. 636, Pt. D, §1, is further amended to read:
§ 2201. Purpose
It is the purpose of this chapter to permit public agencies of the State or any adjoining state, including but not limited to municipalities, counties and school administrative units, and federal agencies and Indian tribes and their political subdivisions to make the most efficient use of their powers by enabling them to cooperate on a basis of mutual advantage and thereby to provide services and facilities within the State in a manner and pursuant to forms of governmental organization that will accord best with geographic, economic, population and other factors influencing the needs and development of communities. It is also the purpose of this chapter to provide incentives for greater interlocal cooperation among local governments by allowing such governments to shelter that portion of a municipality's equalized taxable valuation dedicated to the financial support of joint services and functions provided by 2 or more local governments.
Sec. 2. 30-A MRSA §2205, as enacted by PL 1987, c. 737, Pt. A, §2 and Pt. C, §106 and amended by PL 1989, c. 6; c. 9, §2; and c. 104, Pt. C, §§8 and 10, is further amended by adding at the end a new paragraph to read:
If an agreement made under this chapter will result in one or more municipalities taking advantage of the incentives provided under section 2209, the agreement must be filed with the property tax division within the Department of Administrative and Financial Services, Maine Revenue Services for verification purposes.
Sec. 3. 30-A MRSA §2209 is enacted to read:
§ 2209. Incentives
A municipality that is financing the delivery of joint services under the terms of an agreement made according to this chapter may shelter a certain amount of imputed value from the determination of equalized just value of taxable property conducted by the property tax division within the Department of Administrative and Financial Services, Maine Revenue Services pursuant to Title 36, sections 208 and 305.
Sec. 4. 36 MRSA §305, sub-§1, as amended by PL 2003, c. 426, §2, is further amended to read:
This bill provides an incentive for municipalities to enter into collaborative agreements with other municipalities or units of local government to provide joint services under the terms of the State's longstanding laws governing interlocal cooperation. The incentive provided by the bill is the ability of the municipalities participating in an interlocal agreement to calculate the value of taxable property within the municipality that is dedicated to financing the joint agreements and cause that value to be sheltered in the calculation of each municipality's equalized just value. The equalized just value is a determining factor in the distribution of General Purpose Aid to local schools, municipal revenue sharing and the apportionment of county taxes.