A bill to help municipalities establish their own property tax stabilization programs for older residents in their communities is being considered by a legislative committee. The Legislature’s Taxation Committee conducted a public hearing on March 19 for LD 559, “An Act Provide Property Tax Stabilization for Older Maine Residents,” Sen. Donna Bailey, D-Saco. The bill would also allow the municipalities to levy a one percent local option sales tax on meals and lodging to fund the municipal property tax stabilization programs.

“Throughout the fall and winter, one of the issues I heard about from constituents was the concern over rising property taxes,” said Bailey. “We all know older people in our lives who opened that bill when it came in the mail. We also know what came next — the feelings of shock and worry. This program can help municipalities that opt to establish their own stabilization programs retain the older members of their communities who have lived, studied, raised families, worked and retired there. These Mainers are deeply ingrained in their communities, and they have extensive social connections and networks that allow them to age well. Everyone benefits when these folks stay close to home.”

In the previous Legislature, Bailey supported targeted property tax relief for older Mainers to help them remain in their homes. These efforts strengthened existing programs, like the Property Tax Fairness Credit and the State Property Tax Deferral Program, which are designed to help those who need it most, including low- and moderate-income seniors.

The Property Tax Fairness Credit — which Maine taxpayers of any age may be eligible for — was expanded for Mainers aged 65 and older. Legislators increased the maximum benefit to $2,000 (up from $1,500 previously), and expanded eligibility for middle-income Mainers. This refundable income tax credit is designed to help both homeowners and renters, and Mainers don’t need to owe income taxes to qualify. Maine residents who are under 65 can qualify for up to $1,000 back.

The Legislature also expanded eligibility for the State Property Tax Deferral Program, Sen. Bailey successfully revived and funded, to help older Mainers who cannot afford their property taxes. This program allows the state to cover property tax bills, with repayment deferred until the home is sold or passed to heirs. For many older Mainers, this program can provide immediate relief without the fear of losing their homes.

In the coming weeks, LD 559 will face further action in the committee.