Information for former State Property Tax Stabilization Participants
Information for former State of Maine Property Tax Stabilization Participants
On October 9th letters were mailed to those residents who took part in the State of Maine Property Tax Stabilization Program for FY24. This program froze tax bills for FY24 at the FY23 rate so participants did not see the increase other property owners experienced last year. In July 2023, the State of Maine repealed this program that many of our 65 and older residents took part in.
The repeal of this bill caused tax bills to revert to the current mil rate of 21.0. We understand that many homeowners who were in the State’s Property Tax Stabilization program were caught unprepared for the increase in their property tax bill caused by the repeal of this program. Because of this we have extended the sign-up period for Tax Club for those who participated in the FY24 Tax Stabilization Program. This is for a limited time.
Tax Club allows property owners to pay their annual property tax bill in monthly installments without incurring interest.
To keep from incurring interest, your first payment must be received by November 1st, 2024. Thereafter, monthly payments are due on the 15th of each month. To keep payments lower, we will extend the Tax Club period an additional month making the last payment due July 15th, 2025. This will divide your bill into 9 payments instead of 2.
To be eligible to participate in this plan the property owner must be current with their property taxes, must complete, and return an enrollment application no later than October 25th, 2024, and must abide by the requirements of the plan. An application is enclosed with this letter, they are also available in our Town Office.
For more information on the 2024/25 Tax Club Plan, please contact the Town Office at 666-5531, or email our Assistant Clerk at [email protected].
There are other programs that may help reduce the weight of your property tax bill.
STATE PROGRAMS:
The Property Tax Fairness Credit: 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 an individual’s income tax due for the tax year, the excess amount of credit will be refunded. The state increased the maximum benefit from $1500 to $2000.
Who is eligible for the Property Tax Fairness Credit? Homeowners or renters who meet all the following requirements:
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.
Meet certain income and property tax and/or rent paid limitations during the tax year; and
Are not married filing separately.
To claim this credit, you must file a State of Maine income tax form 1040ME with a Schedule PFTC/STFC form.
The State Property Tax Deferral Program: This program allows certain individuals to defer (postpone) payment of the property taxes on their primary residence until they pass away, move, or sell the property. While the individual is in the Program, the State reimburses the municipality for the deferred taxes. The deferred tax, plus interest, must be repaid to the State by the individual or their estate when they pass away, move, sell the property, or (if a mobile or floating home) move the property out of Maine.
Who qualifies? To be eligible for the Program, you must either be:
at least 65-years old; OR unable to work due to a permanent disability.
AND
Your income during the previous calendar year must be less than $80,000.
Your liquid assets must be less than $100,000 (less than $150,000 if more than one owner).
More information on tax relief programs offered by the State of Maine can be found at www.maine.gov/revenue/taxes/tax-relief-credits-programs . If you still have questions, you can contact Maine Revenue Services, Property Tax Division, at 207-624-5600 or email them at [email protected].
ABATEMENT OPTIONS: You may qualify for an abatement if:
You think your property has been assessed incorrectly (i.e., incorrect acreage, too many buildings, etc.) you can contact the Town Office to schedule an appointment with our Assessor to review your assessment.
If paying your taxes creates a financial strain that does not allow you to meet your basic living needs, you may qualify for a POVERTY ABATEMENT. This is a Confidential Abatement application process that is decided by the Select Board. To apply for a Poverty Abatement, please contact the Town Office for an appointment with the Town Manager, Nicole Briand.
Please see information attached on local resource sheet put together by the Advisory Committee on Age-Friendly Bowdoinham as well as a letter from our Outreach Coordinator, Sally Cluchey on Medicare Savings Program that you may qualify for.
We hope this information is helpful. If you have any questions, please contact the Town Office at (207) 666-5531.