36 M.R.S. § 661 — Reimbursement for exemptions

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. The property tax revenue loss shall be determined pursuant to the following procedure.
1.
Filing claim.
If a municipality suffers property tax revenue loss as a result of exemptions and credits enacted after April 1, 1978, it may file a claim for reimbursement by November 1st of the following year with the State Tax Assessor on the form prescribed by the State Tax Assessor in section 383 . The form shall contain the following information:
A.
The total amount of property taxes levied by the municipality in the previous calendar year;
B.
The valuation of the property taxed by the municipality which resulted in paragraph A ; and
C.
The valuation of the property which is exempt as a result of exemptions and credits enacted after April 1, 1978.
2.
Valuation.
The State Tax Assessor shall add the valuation as determined in subsection 1, paragraph B , to the valuation as determined in subsection 1, paragraph C , and divide the sum into the figure determined in subsection 1, paragraph A .
3.
Amount of tax revenue loss.
The State Tax Assessor shall apply the rate in subsection 2 to the valuation of the exempt property to determine the amount of tax revenue loss.
4.
Payment.
The Treasurer of State shall pay to the municipality 50% of the property tax revenue loss by December 15th of the year following the year in which property tax revenue was lost by the municipality.
5.
Unorganized territory.
The unorganized territory shall be entitled to reimbursement under this section in the same manner provided by this section for municipalities. The amount of reimbursement due shall be paid into the Unorganized Territory Education and Services Fund established in chapter 115 .
6.
Audits; determinations of bureau.
The bureau may audit the records of a municipality to ensure compliance with this subchapter. The bureau may independently review the records of a municipality to determine if exemptions subject to reimbursement under this section have been properly approved. If the bureau determines that an exemption was improperly approved, the bureau shall ensure, either by setoff against other payments due the municipality or otherwise, that the municipality is not reimbursed for the exemption. A municipality that is aggrieved by a determination of the bureau under this section may appeal pursuant to section 151 .