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Senior Tax Stabilization- Repealed by State Legislature

state of maine

LD 290 “Property Tax Stabilization for Senior Citizens” Repealed by State Legislature

The LD 290 “Property Tax Stabilization for Senior Citizens” program, enacted in August 2022, was repealed by the Maine Legislature on July 6, 2023, with an effective date of October 11, 2023. The popularly regarded program had allowed Maine seniors 65 and older who owned a permanent residence for at least 10 years and were receiving (or eligible for) a homestead exemption, to freeze taxes at the previous year’s level regardless of income. The repeal of this program means there will be no reapplication process and no need to follow up with the Assessing Department in late August/early September, as previously communicated. It is important to note that these are State programs and while the Town plays a role in the administration of them, the Town is not responsible for the policy objectives of these initiatives. Any questions or concerns owners have regarding this program should be directed to your legislative representative. To find your representative, please visit: Maine State Legislature.

Two Tax Relief Programs Being Expanded

To help lower-income seniors avoid higher property taxes and remain in their homes, two existing State programs are being expanded:

1. The Property Tax Fairness Credit, which currently allows eligible Mainers to take a $1,500 credit, has increased to $2,000; it also loosens limits on the program in a way that allows the benefits to remain constant for a Mainer whose spouse passes away. Note: To claim the credit, you must file Form 1040ME and Schedule PTFC/STFC for the tax year during which the property tax or rent was paid. For help, call 207-624-9784. For more info, please visit: Property Tax Fairness Credit Summary.

2. The State Property Tax Deferral Program, a lifeline loan program that covers the annual property tax bills of Maine seniors age 65 and older who cannot afford to pay them on their own, has been expanded. It doubles the income limit on that program to $80,000 and also raises asset limits. Taxes must be paid back when the home is sold or becomes part of an estate.

Note: Questions on this State managed program can be referred to Maine Revenue Services, Property Tax Division, at 207-624-5600 or prop.tax@maine.gov.