An Act To Limit the Amount of Money a Municipality May Spend on Education
Sec. 1. 20-A MRSA §15688, sub-§3-A, as amended by PL 2007, c. 668, §§36 and 37, is further amended to read:
(1) The total cost described in subsection 1; and
(2) The total of the full-value education mill rate calculated in section 15671-A, subsection 2 multiplied by the property fiscal capacity of the municipality . ; and
(3) Fifty-five percent of the state valuation of all property in the municipality subject to taxation as certified by the Department of Administrative and Financial Services, Bureau of Revenue Services pursuant to Title 36, section 305, subsection 1 unless a majority of the elected municipal officials approve raising a higher amount.
(1) The municipality's total cost as described in subsection 2; and
(2) The total of the full-value education mill rate calculated in section 15671-A, subsection 2 multiplied by the property fiscal capacity of the municipality . ; and
(3) Fifty-five percent of the state valuation of all property in the municipality subject to taxation as certified by the Department of Administrative and Financial Services, Bureau of Revenue Services pursuant to Title 36, section 305, subsection 1 unless a majority of the elected municipal officials approve raising a higher amount.
(1) The total cost as described in subsection 1; and
(2) The sum of the totals calculated for each member municipality pursuant to paragraph B, subparagraph (2) . ; and
(3) Fifty-five percent of the state valuation of all property in each member municipality subject to taxation as certified by the Department of Administrative and Financial Services, Bureau of Revenue Services pursuant to Title 36, section 305, subsection 1 unless a majority of the elected municipal officials approve raising a higher amount.
Sec. 2. 36 MRSA §7301, as enacted by PL 2005, c. 2, Pt. H, §2, is amended to read:
§ 7301. Tax burden reduction goals and policies
It is the goal and policy of the State that by 2015 the State's total state and local tax burden be ranked in the middle 1/3 of all states, as determined by the United States Census Bureau's most recent tax burden analysis, adjusted by the assessor to reflect the State's unique expenditure tax relief programs.
It is the goal and policy of the State that additional state funds provided to municipalities through increases in the state share of education funding under the essential programs and services funding model must, to the greatest possible extent, be available for statewide property tax reduction.
Notwithstanding any other provision of law, it is the goal and policy of the State that, for tax years beginning on or after January 1, 2016, the amount of property taxes distributed by a municipality for education under the essential programs and services funding model, pursuant to Title 20-A, chapter 606-B, not exceed 55% of the state valuation of the municipality's property subject to the valuation filed with the Secretary of State pursuant to section 305, subsection 1.
summary
This bill provides that, beginning with the 2016 tax year, it is the goal and policy of the State that the amount of property taxes distributed by a municipality for education under the Essential Programs and Services Funding Act may not exceed 55% of the state valuation of the municipality's property subject to the valuation filed with the Secretary of State. The bill also provides that a municipality is not required to pay more than 55% of the funds raised by local property taxes for the municipality's required contribution to the school administrative unit's total cost of education unless a majority of the elected officials of the municipality approve raising and expending funds appropriated through local taxation for educational purposes that exceed 55% of the state valuation of the municipality's property.