Maine Property Freeze Tax Repeal

Posted by Anna Traugh on August 18, 2023

The Maine Legislature reconvened late last month and voted to repeal the ‘Property Tax Stabilization for Senior Citizens’ was enacted in August of 2022. This repeal is effective October 11^th, meaning that after this date the state will not accept any payments that include ME state property tax freeze legislation from 2022. Any taxpayer whose application was submitted prior to December 1, 2022, and approved, will still receive the “freeze” on their 2023 property tax bill through October 11th. Since the program has ended, there will be no re-application process. 

Although this 2022 program was repealed, low-income seniors have two existing state tax relief programs that have been expanded and can be utilized if individuals meet the eligibility requirements.

The Property Tax Fairness Credit – Under this program, eligible Mainers may receive a portion of the property tax or rent paid during the year based on the ME individual income tax return. Should a credit exceed the amount due for the tax year, any excess will be refunded to you.

Expanded changes:

• The $1,500 credit has been increased to $2,000.
• Limits of the program have been revised to allow benefits to remain constant for a Mainer whose spouse passes away.

To claim the credit, file Form 1040ME and Schedule PTFC/STFC for the tax year during which the property tax or rent was paid. For more information, visit this page.

The State Property Tax Deferral Program – This is a lifelong loan program that helps cover property tax bills of those aging Mainers who cannot afford to pay them on their own. The program requires repayment of the loan once the property is sold or becomes part of an estate.

Expanded changes:

• The income limit has doubled and is now $80,000 (combined).
• The amount of liquid assets allowable is now $150,000 (combined) or $100,000 single.
• Taxpayers who are delinquent in their property taxes (up to two years) are now eligible to participate in the program.

To apply for this program, you must file an application with your local municipal assessor between January 1 and April 1.  The application is available on the MRS website at www.maine.gov/revenue/tax-return-forms/property-tax. 

As a reminder to Maine residents, these are State programs that legislators are responsible for determining these policies. Although many towns administer the programs, it should be noted that any questions or concerns regarding these programs should be directed to a Maine State Legislative representative.

Find your representative: https://legislature.maine.gov/house/house/MemberProfiles/ListAlphaTown

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