ME LD559

Municipalities may adopt by ordinance a property tax stabilization program that freezes property taxes at the prior year's amount for eligible seniors who are at least 62 years old, permanent Maine residents, and have owned a homestead in the state for at least 10 years

Municipalities may impose by referendum a 1% local option sales tax on prepared food and lodging at hotels, rooming houses, and tourist or trailer camps

Revenue from the local option sales tax may only be used to offset municipal revenue losses from the senior property tax stabilization program

State Tax Assessor administers collection of the local sales tax, with administrative costs capped at 2% of total revenue, and distributes net proceeds to participating municipalities quarterly

Local option sales tax revenue does not affect state revenue sharing or reduce other state aid to municipalities for schools, roads, public assistance, or jails