The LD 290 “Property Tax Stabilization for Senior Citizens” program has been repealed by the Maine Legislature. The program enacted in August 2022, was repealed on July 6, 2023, with an effective date of Oct. 11. 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, according to the Scarborough Assessing Department.
Although the program has been repealed, initial applications will still be administered this year for the upcoming Tax Commitment in August 2023, according to the department. As a result, approximately 1,850 eligible Scarborough applicants will only be responsible for the “frozen” property tax bill amount for the 2023-2024 billing cycle — this amount will be equal to the tax amount the owner was billed in 2022-2023, unless their new billed amount would be lower, in which case they’d owe the lower of the two amounts. Per the law, the state will reimburse the town for 100% of the difference between actual and frozen taxes.
While the town administers the program, they are state programs and legislators are the ones who are responsible for enacting, amending and repealing these programs. 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, visit: Maine State Legislature.
Despite the repeals, low-income seniors will get some relief through two existing state programs that will be expanded. These include:
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. This program is not administered by the Town of Scarborough. For help, call 207-624-9784. For more info, visit: tiny.cc/zzo9vz
Eligible Maine taxpayers may receive a portion of the property tax or rent paid during the tax year on the Maine individual income tax return whether they owe Maine income tax or not. If the credit exceeds the amount of your individual income tax due for the tax year, the excess amount of credit will be refunded to you.
Homeowners or renters who meet all of the following requirements are eligible for the program:
• Were Maine residents during any part of the tax year;
• Owned or rented a home in Maine during any part of the tax year and lived in that home during the year as a primary residence;
• Paid property tax* or rent on the primary residence in Maine during the tax year (For tax years beginning on or after Jan. 1, 2022, property tax paid includes amounts paid on the taxpayer’s behalf during the tax year by the State to the municipality under the Property Tax Deferral Program.);
• Meet certain income and property tax and/or rent paid limitations during the tax year; and
• Are not married filing separately.
To claim the credit, file Form 1040ME and Schedule PTFC/STFC for the tax year during which the property tax or rent was paid. Maine Revenue Services will assist taxpayers with Form 1040ME and Schedule PTFC/STFC. For help, call 207-624-9784 weekdays 9 a.m. to noon Closed on State recognized holidays.
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. The Town of Scarborough does not administer the program; 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. For more info, visit: tiny.cc/40p9vz
The State Property Tax Deferral Program, is a lifeline loan program through the Governor’s Maine Jobs & Recovery Plan that can cover the annual property tax bills ofeligible Maine people who are ages 65 and older or are permanently disabled and who cannot afford to pay them on their own according to the state website. The loan program will allow Maine’s most vulnerable community members to age in place and ensure that property taxes are still delivered to municipalities. The program requires repayment of the loan once the property is sold or becomes part of an estate.
“Older Mainers and those with disabilities deserve to live and age in the comfort of their homes without worrying they’ll lose them because they can’t afford the property taxes,” said Governor Janet Mills. “This program through my Maine Jobs & Recovery Plan provides folks with the peace of mind that they can age safely and securely in their homes. My Administration will continue to work with the Legislature to address property taxes, increase the availability of housing, and ensure that all Maine people, regardless of age or income, are able to have a safe, stable place to call home in our state.”
The State Property Tax Deferral Program pays property tax bills to Maine municipalities for any owner-occupied, primary residence so long as the owner is aged 65 or older and/or permanently disabled, earns less than $40,000 per year, and has liquid assets below $50,000 (or below $75,000 if applying jointly). Full eligibility criteria and applications may be obtained via Maine Revenue Services.
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