A tax generated by property sales helps power Maine’s various affordable housing initiatives, including a program that assists first-time home buyers and another to prevent foreclosures. Lawmakers are considering adding a new initiative to the list: funding homeless shelters. But deciding how to allocate the money is complicated.
The real estate transfer tax — which collects money from both buyers and sellers each time a property is sold — is expected to grow significantly in the coming years, thanks in part to Maine’s burgeoning housing market and recent changes to the tax.
