Tim Nangle: Beneficial property tax relief changes you should know about

By State Sen. Tim Nangle

As your state senator, one of my primary responsibilities is to inform you about changes that directly impact your life. Recently, the 131st Legislature made some substantial adjustments to our state's property tax programs, which will better target relief to folks who need it the most.

State Sen. Tim Nangle

Last year, the 130th Legislature passed LD 290, which created the Property Tax Stabilization Program. While this program was well-intentioned and seemed good on the surface, municipalities and financial experts soon identified that this program would have quickly become financially unsustainable. It had the potential to strain our state and local budgets, putting added pressure on fellow property taxpayers. It was clear we needed to make a change.

This year, the Taxation Committee worked to address this issue. After thoughtful deliberation and bipartisan agreement, the committee amended and approved LD 130, "An Act to Eliminate Senior Citizen Property Tax Stabilization and Expand the Homestead Property Tax Exemption."

This bill made two important changes to existing programs that significantly benefit seniors living on a fixed income. It sunsets the unworkable Property Tax Stabilization Program while expanding two existing, better-targeted programs — the Property Tax Fairness Credit and the Senior Property Tax Deferral Program. The changes put forward in this bill were included in the biennial budget.

This change has a variety of advantages over the previous program. Under the old Property Tax Stabilization Program, the average Maine senior would have saved $128 per year. Now, seniors will save on average close to $500 per year — a substantial increase that makes a real difference for those living on a tight budget. To make sure financial relief reaches those who need it, the Property Tax Fairness Credit will see substantial improvements. The credit's maximum benefit will increase, and the income qualifications have been extended so more folks can receive this credit. Importantly, because the Property Tax Fairness Credit is also available to renters, this change ensures that seniors who choose to sell their homes and move into apartments won’t suddenly lose their aid. It doesn't just benefit long-term homeowners; it also extends support to seniors who rent or who have recently downsized to an apartment.

Perhaps one of the best changes is that you won’t need to go to the town office and fill out any special forms to get this credit. All you have to do is file your income taxes; if you qualify, you get it. If you need help filling out your taxes, you can reach out to CA$H Maine and AARP Tax-Aide for free assistance.

The Senior Property Tax Deferral Program was also expanded. By relaxing income and asset restrictions, the program can now benefit more Mainers. For homeowners who have fallen behind on property taxes, the updated law allows them to enter the deferral program — a change specifically recommended by Legal Services for the Elderly.

These changes will go into effect in January 2024. Those who were previously part of the Property Tax Stabilization Program should file their income tax – even if you haven’t needed to file in a while, or know you don’t owe taxes — to qualify for the Property Tax Fairness Credit, which has been enhanced to better direct relief. Information about this credit, as well as the existing Homestead Exemption Program, is available on the official website of Maine Revenue Services: https://www.maine.gov/revenue/

The changes to these programs are a testament to our shared commitment to supporting those who have worked hard to build our communities over generations. I’m going to keep working to ensure fair treatment and economic stability for all Mainers, including our seniors.

If you or someone you know needs assistance, wants to discuss legislation, or needs help connecting with a state agency, please don’t hesitate to reach out. My email is Timothy.Nangle@legislature.maine.gov, and my office phone number is 207-287-1515. You can find me on Facebook at facebook.com/SenatorTimNangle. To receive regular updates, sign up for my e-newsletter at mainesenate.org. <