Property Tax Stabilization Program
LD 290 “Property Tax Stabilization for Senior Citizens” Repealed by State Legislature;
The LD 290 “Property Tax Stabilization for Senior Citizens” program, or “Senior Tax Freeze Program”, enacted in August 2022, has been repealed by the Maine State Legislature.
Although the program has been repealed, if you applied and were approved, your initial application will still be implemented this year for the upcoming Tax Commitment in August 2023. This year’s tax bill on qualifying property will be “frozen” at 2022 levels, with the State contributing any additional tax that would have been assessed. The program will be discontinued for next year’s tax bill cycle (2024-2025) and all property will be assessed at whatever tax rate is calculated for that year.
Qualifying Gardiner senior property owners saved $78,000 on property taxes for the 2023-2024 as a result of this program.
The repeal of this program means there will be no reapplication process and no need to follow-up with the Assessing Department in late August/early September, as previously thought.
Two existing State programs benefiting low-income seniors to be expanded;
In the coming months, as applications and guidance is released by Maine Revenue Services, more information explaining these programs and the process by which to apply.
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. Note: This program is not administered by the City of Gardiner; to claim the credit, you must file Form 1040ME and Schedule PTFC/STFC for the tax year during which the property tax or rent was paid. For help, call 207-624-9784. For more info, visit: www.maine.gov/revenue/taxes/tax-reliefcredits-programs/income-tax-credits/property-tax-fairness-credit. The City does administer a local version of the Tax Fairness Credit for qualifying seniors. Applications are due October 15th of each year and are based on the previous year’s Tax Fairness Credit received. Inquire for specifics about this local program at City Hall.
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. Note:This program is administered by the State; however, applications must be filed with the Assessor's Office between January 1 and April 1 each year. Applications are forwarded by the City to Maine Revenue Services who review and make the determination for acceptance and approval.
Questions can be referred to Maine Revenue Services, Property Tax Division, at 207-624-5600
or prop.tax@maine.gov. For more info, visit:www.maine.gov/revenue/taxes/tax-relief-credits-programs/property-tax-rel...