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April 6, 2010 Jay Finegan, 287-1445
Rep. Nass: Bill to raise veterans’ property tax exemption goes to working group

AUGUSTA – A bill sponsored by State Rep. Joan Nass to increase the property tax exemption for veterans travelled a long and complicated legislative route before landing on the governor’s desk, where it was signed into law on March 30.

The final product falls short, however, of the original objective – an outright increase in the property tax exemption from $6,000 to $7,000 for veterans and their eligible survivors. That would match the exemption given to veterans of World War I and earlier wars. Instead of increasing the exemption, LD 71 ended up establishing a working group to review alternatives for an enhanced exemption.

Rep. Nass (R-Acton), who serves on the Legal and Veterans Affairs Committee, submitted the bill at the start of the 124th Legislature. It landed in the Taxation Committee and was held over for consideration until the second session. The Taxation Committee amended the bill, changing it to a resolve; and a subsequent Senate amendment further narrowed the scope of the legislation.

“I was somewhat disappointed that we didn’t immediately achieve the goal of giving veterans a better property tax break,” said Rep. Nass. “I trust that the working group will look at the issue from all angles and figure out a system that is fair and equitable.”

The working group will explore alternative ways of lowering the property tax burden on veterans. The alternatives must include, but are not limited to, an increase on a one-time basis; an increase over time through indexing to the Consumer Price Index; or a 5 percent annual increase. The working group will review the financial and administrative impact on state and local government, as well as the benefit to veterans.

The Bureau of Revenue Services will convene the working group and report the findings to the Legislature’s Taxation Committee by Jan. 15, 2011. Members of the working group will include representatives of the Bureau of Maine Veterans’ Services and the Bureau of Revenue Services, along with interested stakeholders, such as the Maine Municipal Association.

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