This bill directs a portion of revenue from Maine's real estate transfer tax to support emergency homeless shelters through the State Housing Authority's shelter operating subsidy program. Starting in fiscal year 2026-27, the Treasurer of State will distribute the tax revenue by allocating 2% to the shelter subsidy program, while adjusting other distribution percentages to the General Fund and various housing funds. The legislation also appropriates $1,012,617 for the shelter operating subsidy program in fiscal year 2026-27 to provide immediate funding for emergency shelter operations.
LD 430 temporarily bans the removal of hydropower dams until January 1, 2027, and restricts water release from nonhydropower dams. It extends the consultation period for dam owners to find new owners from 180 to 210 days and requires detailed reports on consultation efforts and compliance with notice rules. The bill aims to protect renewable energy generation, local tax revenue, and businesses that rely on stable water levels maintained by dams. These changes are intended to prevent disruptions to communities, recreational uses, and property values dependent on consistent river flows.
This bill requires medical cannabis dispensaries and caregivers to test all cannabis products before selling them to patients, ensuring they meet safety standards for contaminants like pesticides, microbes, and THC potency (max 10mg per serving, with a 10% variance allowance). It mandates testing for harmful substances including pesticides, molds, and PFAS, and requires detailed record-keeping of test results. The bill also directs a portion of adult-use cannabis tax revenue to fund medical cannabis programs and creates a study group to review the program’s effectiveness. These changes directly affect medical cannabis patients, dispensaries, and caregivers in Maine by aligning safety protocols with adult-use standards.
This bill creates a new "Local Government Hospitality Fund" to share revenue from meals and lodging sales taxes with municipalities. Starting January 1, 2026, 1% of the previous month's meals and lodging tax revenue collected by the state will be added to this fund. The state will then distribute these funds each month to municipalities based on how much of the tax they collected locally. This directly benefits municipalities that collect these taxes, providing them with additional local revenue without requiring new taxes.
LD 377 increases Maine's cigarette tax from 100 to 150 mills per cigarette and dedicates 33% of the resulting revenue to establish a University of Maine medical school in Penobscot County. The medical school must include a rural health care curriculum and provide clinic outreach to seven rural counties: Aroostook, Penobscot, Piscataquis, Washington, Waldo, Hancock, and Somerset. The remaining 67% of the tax revenue will go to the state's General Fund. The law takes effect on July 1, 2026.
This bill creates a Local Government Cannabis Revenue Fund to receive 12% of Maine's sales tax revenue and 12% of the excise tax revenue from adult cannabis sales each month. The fund's money is distributed monthly to municipalities that have approved cannabis businesses through local ordinances, amendments, or warrant articles, based on each municipality's share of statewide cannabis revenue. Unorganized and deorganized areas are treated as municipalities for distribution purposes. This provides direct revenue to local governments managing cannabis operations to offset related costs.
This bill increases the state's reimbursement rate to municipalities for property tax revenue lost when homeowners qualify for Maine's homestead exemption (which reduces their tax burden). Currently, municipalities receive 76% of lost revenue; the bill raises this rate by 3 percentage points annually starting in 2026. The annual increases continue until reimbursement reaches 100% of lost revenue - projected to take 8 years. This directly affects all Maine municipalities that collect property taxes and provide the homestead exemption to qualifying residents.
LD 1875 requires owners of electric vehicles (both battery electric and plug-in hybrid) in Maine to pay a road use fee based on annual mileage, starting January 1, 2026. The fee is calculated by multiplying the net miles driven (current year's mileage minus the prior year's) by 1.0 cents for battery electric vehicles or 0.5 cents for plug-in hybrids. Collected fees fund annual suspensions of the gasoline tax, with the number of suspension days determined by comparing the fund balance to gasoline tax revenue. Failure to pay the fee within 45 days results in suspension of the vehicle's registration.
LD 1555 replaces Maine's existing employer-assisted day care tax credit with a new refundable tax credit for employers that provide or pay for child care services for their employees' children. Employers can claim a credit equal to 50% of qualifying costs, up to $8,000 per child or a total annual limit of $80,000, for tax years beginning January 1, 2026. Unused credits may be carried forward for up to 15 years. The credit will be subject to legislative review starting in 2030 to assess its impact on state revenue and policy goals.
LD 1768 amends Maine's real estate transfer tax law to better support mobile home park residents. It exempts transfers of mobile home parks to residents or resident-owned associations from the standard transfer tax, making it easier for residents to collectively purchase their parks. Additionally, all tax revenue generated from mobile home park sales (to non-residents) must be directed to the Maine State Housing Authority and deposited into the Housing Opportunities for Maine Fund, which supports statewide housing initiatives. These changes take effect starting in fiscal year 2026-27.
