ME LD542

Establishes annual property tax levy limits for Maine municipalities, calculated as the prior year's limit multiplied by a growth limitation factor (average personal income growth plus property growth factor)

Excludes county assessments, school funding under Title 20-A chapter 606-B, school administrative unit assessments, student tuition, and tax increment financing district amounts from the property tax levy calculation

Allows municipalities to exceed the levy limit only for extraordinary circumstances outside their control, including natural disasters, terrorism, unfunded mandates, court orders, citizen initiatives, or loss of state/federal funding—but not for economic conditions, revenue shortfalls, or salary increases

Requires a separate written ballot vote at town meeting or referendum, or majority vote of all elected council members, to exceed the limit; council decisions can be challenged by petition signed by 10% of voters from the last gubernatorial election

Applies to municipal fiscal years beginning on or after July 1, 2026, and reinstates provisions similar to those originally enacted in 2005 (L.D. 1) and repealed in 2023