An Act To Establish Municipal Cost Components For Unorganized Territory Services To Be Rendered In Fiscal Year 2025-26

132nd Legislature (2025-2026) Introduced by Kristen Cloutier

Sets the municipal cost components for UT services and education for FY 2025-26 and incorporates them into UT property tax assessments to Fund, transfers, and reimbursements.

Signed by Governor

#municipalcostcomponents #propertytaxprocedures #unorganizedterritory

Purpose / Intent

LD 1584 sets the municipal cost components used to calculate the property tax assessment for Maine’s unorganized territory (UT) for fiscal year (FY) 2025‑26. Those components represent the state’s budgeted costs for services and education provided in areas of the state that are not incorporated as municipalities, and they are used to determine the UT tax levy that funds those services.

Key provisions

Establishes the municipal cost components (the statewide line‑item costs) for services and education to be provided in the unorganized territory in FY 2025‑26.

Directs that those amounts be incorporated into the property tax assessment for the unorganized territory.

Designates the resulting tax collections as dedicated revenue to the Unorganized Territory Education and Services Fund.

Provides for transfers from that Fund to other dedicated accounts for UT‑related expenditures and for reimbursement to the General Fund for any actual General Fund expenditures included in the municipal cost components.

Note: The enrolled version of the bill was amended by Committee Amendment “A” (H‑424) prior to enactment; the fiscal notes reflect the bill as amended.

Who is affected

Property owners in Maine’s unorganized territory: the bill determines the municipal cost components that factor into the UT property tax assessment for FY 2025‑26.

State finance/accounting: modifies revenue collection flows to the Unorganized Territory Education and Services Fund and subsequent transfers and reimbursements.

General Fund: may receive reimbursements from the UT fund for any General Fund expenditures included in the components (the bill does not change budgeted General Fund appropriations or revenues).

Fiscal impact

Fiscal notes (preliminary and as amended/engrossed) report NO NET FISCAL IMPACT.

The amounts used are based on FY 2025‑26 budgeted expenditures.
Collections are treated as dedicated revenue and redistributed as described; the bill does not alter budgeted General Fund revenue or appropriations.

Legislative and procedural timeline

Introduced: April 10, 2025 (Sponsor: Rep. Cloutier of Lewiston; referred to Committee on Taxation).

Committee action: Reported Out as OTP‑AM; Committee Amendment “A” (H‑424) adopted.

Passed both chambers under suspension of rules; designated an emergency measure requiring a two‑thirds vote.

Passed to be enacted and sent for concurrence (June 2–3, 2025).

Signed by the Governor: June 10, 2025 — emergency enactment, effective on signature (immediate effect for FY 2025‑26 accounting).

Additional notes

The bill sets procedural and accounting parameters rather than creating new ongoing programs or funding; it implements the statutory mechanism by which the state charges and collects the UT tax to cover state‑provided local services in unorganized areas. Specific dollar amounts for the components are drawn from the FY 2025‑26 budget but are not enumerated in the provided fiscal notes.

Bill