New Property Tax Law for Homesteads of Senior Residents
A note from Assessor Bill Healy on this new law:
Applications will likely become available in early September. The bill was well intention but poorly written. It contains multiple loopholes, lacks financial information and the Taxation Committee determined it as “ought not to pass”. It will likely be repealed or replaced in the next Legislative Session.
During the most recent session, the Legislature passed L.D. 290 - “An Act To Stabilize Property Taxes for Individuals 65 Years of Age or Older Who Own a Homestead for at Least 10 Years.” This new law allows certain senior residents to stabilize, or freeze, the property taxes on their homestead. An applicant must be at least 65 years old, a permanent resident of the State, and must have owned a Maine homestead for at least ten years. As long as the individual files an application each year, the tax on their homestead is fixed at the amount assessed in the year prior to the initial application. Eligible residents may transfer the fixed tax amount to a new homestead, even between municipalities. The State will fully reimburse municipalities for lost revenue.
The law goes into effect on August 8, 2022, and applies to property tax years beginning April 1, 2023.\ Interested taxpayers will need to apply with the municipality where their homestead is located on or before December 1.
Maine Revenue Services is currently drafting forms and instructions, along with guidance for applicants and municipalities, which will be released in advance of the law’s effective date in August.
For additional questions, please contact the Property Tax Division at (207) 624-5600 or email@example.com.