State Reimbursement Programs

EXEMPTION REIMBURSEMENTS

Title 36 Section 661

As required by the Constitution of Maine, Article IV, Part 3, Section 23, the Treasurer of State shall reimburse each municipality 50% of the property tax revenue loss suffered by that municipality during the previous calendar year as a result of statutory property tax exemptions or credits enacted after April 1, 1978 .

A municipality may apply for reimbursement by November 1 st of the following year with the State Tax Assessor on a form prescribed by the State Tax Assessor. This prescribed form is better known as the Municipal Valuation Return .

The following exemptions qualify for reimbursement:

Animal Waste Facility (Title 36 Section 656-1.J.)

Homestead (Title 36 Sections 681 - 689)

Snowgrooming Equipment (Title 36 Section 655-1.T.)

Veterans (Title 36 Section 653)

Veterans Organizations (Title 36 Section 652-1.E.)

TREE GROWTH REIMBURSEMENT

Title 36 Section 578

Although Tree Growth is not an exemption, eligible applicants may receive a reduced per acre rate on their forested land which results in a property tax reduction.

A municipality is entitled to annual payments if it submits the Municipal Valuation Return in a timely manner and if it achieves the appropriate minimum assessment ratio (Title 36 Section 327).

The per acre reimbursement is 90% of the per acre tax revenue lost due to tree growth enrollment. The "tax lost" is the tax that would have been assessed if the land were not in tree growth, but were assessed according to the municipality's undeveloped acreage valuations used in the current State Valuation (or the local undeveloped acreage value, whichever is less). Then, minus the tax that was actually assessed.

If a municipality fails to achieve the minimum assessment ratio, they will lose 10% of the reimbursement provided for each one percentage point below that ratio.