Maine's Transfer‑Tax Model
Maine is channeling a growing pool of property transfer‑tax revenue straight into affordable housing projects — state reporting on April 1 highlights the approach as a working model. (barharborstory.com) Policymakers say the funding comes directly from home‑sale transaction taxes and is already being used to finance projects, offering a potential template for other states. (barharborstory.com)
The real estate transfer tax in Maine is $2.20 for each $500 (or fraction) of a property’s value and the tax is imposed one‑half on the grantor (seller) and one‑half on the grantee (buyer). (maine.gov) Receipts from that tax legally feed the Housing Opportunities for Maine (HOME) Fund, a dedicated pool created in 1982 to give MaineHousing a flexible revenue source for state affordable‑housing work. (legislature.maine.gov) This legislative session amended the transfer‑tax structure to raise the rate on the portion of sales above $1,000,000 and to reallocate distributions, including language that would direct roughly 30% of certain transfer‑tax proceeds to a new Maine State Housing Authority affordable‑housing fund. (legislature.maine.gov) The fiscal note for the amended bill (FN108203) projects additional special‑revenue receipts in the low millions immediately and growing to roughly $5.99–$6.52 million in other special revenue by FY 2027‑28 and FY 2028‑29 under committee estimates. (legislature.maine.gov) A separate bill, LD 2124, would start transferring 1.0% of transfer‑tax revenue to the Maine State Housing Authority for a shelter operating subsidy on Sept. 1, 2026 and increase that required share to 1.8% beginning Aug. 1, 2027. (trackbill.com) MaineHousing’s reports state HOME Fund dollars are applied directly to programs such as first‑time homebuyer assistance and foreclosure‑prevention efforts and are not used for agency salaries or administrative costs. (legislature.maine.gov)
