LD 1082 would create a graduated real estate transfer tax by increasing the tax on real estate sales over $1 million to $5 per $500 of sales price.

The bill also exempts home buyers who use the Maine State Housing Authority’s first-time home-buyer loan program from the tax.

Maine’s real estate transfer tax has been the same since 2001, despite the recent rapid growth in housing prices. Real estate transfer tax is paid on all real estate sales in Maine and is split in half between the buyer and the seller. The current rate is flat, which means the same rate is applied no matter the value of the property being purchased. This is inherently regressive. It is also currently the lowest in New England.