As many residents have heard, in July of 2023 the State of Maine repealed the Property Tax Stabilization program. This program allowed many of our citizens 65 and older to freeze their property taxes for FY2024. Town Office has received a lot of questions about this program and including what can residents do now to help with their property taxes?
First, some clarification. This was a State of Maine program not a Town program.
Second, though the State did away with the Property Tax Stabilization program they did not leave taxpayers without options. They expanded two preexisting programs to help eligible residence with property taxes.
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 $2000.
To claim this credit, you must file a State of Maine income tax form 1040ME with a Schedule PFTC/STFC form. Need help filing taxes? See the 2024 Mid Coast CA$H notice in this newsletter.
The State Property Tax Deferral Program: This is a lifeline loan program that covers the annual property tax bills of Maine seniors 65 and older, or those who are permanently disabled and cannot afford to pay the taxes on their own. The loan program allows Maine’s most vulnerable community members to age in place and ensures that property taxes are still delivered to municipalities, requiring repayment of the loan once the property is sold or becomes part of an estate.
This program has been expanded. It doubles the income limit on that program to $80,000 and raises asset limits.
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 firstname.lastname@example.org.