Property Tax Stabilization for Senior Citizens Repealed
LD 290 “Property Tax Stabilization for Senior Citizens” Repealed by State Legislature; Two Tax Relief Programs Being Expanded
The LD 290 “Property Tax Stabilization for Senior Citizens” program, enacted in August 2022 was repealed by the Maine Legislature on July 6, 2023, with an effective date of October 11, 2023.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 popular 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 2023, as previously thought. Although the program has been repealed, your initial application has been administered for the 2023 Tax Commitment. As a result, twenty-one eligible Presque Isle applicants will only be responsible for the "frozen" property tax bill amount for the 2023 billing cycle, this amount will be equal to the tax amount the owner was billed in 2022. There were an additional 741 qualified applicants who will receive a lower tax bill in 2023 due to a decrease in the mil rate of $1.15. This decrease affects all Presque Isle taxpayers, regardless of LD 290 eligibility, and is a result of good fiscal management by City leadership and continued growth in real estate and personal property value. Per the stabilization law, the State will reimburse the City for 100% of the difference between actual and frozen taxes for the twenty-one beneficiaries.
It is important to note that these are State programs and while the City plays a role in the administration of them, the City is not responsible for the policy objectives of these initiatives.
More information can be found on the Maine Revenue Services website.
Two Existing State Programs Benefiting Low-Income Seniors to be Expanded
To help lower-income seniors avoid higher property taxes and remain in their homes, two existing State programs are being expanded:
- 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 Note: This program is not administered by the City; 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 Maine Revenue at 207-624-9784. For more information, please visit: https://www.maine.gov/revenue/taxes/tax-relief-credits-programs/income-tax-credits/property-tax-fairness-credit
- 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 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: This program is not administered by the City; questions on this State managed program can be referred to Maine Revenue Services, Property Tax Division, at 207-624-5600 or email email@example.com. For more information, please visit: https://www.maine.gov/revenue/taxes/tax-relief-credits-programs/property-tax-relief-programs/deferral-program