Presque Isle, Maine — Elderly people across Maine can apply for a property tax freeze when new state law comes into force on August 8.
Senator Trais Stewart of R-Presque Isle drafted a bill on behalf of residents of Aroostook County, who were concerned that property tax increases would make older people with fixed income unable to stay at home.
LD 290A law to stabilize property taxes for individuals aged 65 and over who own a home for at least 10 years passed Congress on May 8. Eligible seniors who apply each year will not pay higher property taxes as long as they live in their home.
If their asset valuation increases, the state will use the $ 3.5 million American Rescue Plan, which funds the state to focus on the program, to pay the municipality the difference between the current tax and the new high.
The idea for this bill came from Stewart’s discussions with county residents, who said that property tax relief would help.
“This has proven to be a fairly popular program,” Stewart said Thursday. “This is just a good example of what happens when you contact an elected civil servant and try to solve a problem. Thankfully, my colleague works with me to solve it. I promised. “
Social security has not kept pace with rising living costs, making older people vulnerable to tax increases. According to Stewart, they sometimes face tough financial decisions or risk losing their home altogether, but this is unacceptable.
Dotty Wheeler, who lives in Bridgewater and admits he is a senior, thanked Stewart for seeing the bill finally pass. Elderly people are often forgotten, and if something positive affects them, it’s worth celebrating, she said Thursday.
“It’s only a matter of time before property taxes are affected, as most older people live on bonds and all prices are rising at gas and grocery prices,” said Wheeler. increase. “I think this is very useful for older people not only in the county, but throughout Maine.”
Presque Isle Tax Assessor Lewis Cousins explained the new law to the Presque Isle City Council on Wednesday.
“This is the way it is designed, and there is no loss to the municipality or other taxpayers,” said the cousin. “No one is doing any harm here.”
Elderly people approved by the program will freeze the current tax rate on their homes until they stop using the home, he said. If the valuation of their property exceeds the amount they are currently paying, the state will refund the city.
The new property tax freeze is separate from the state residence exemption.
The application will be available by 1st September and will be submitted by 1st December of the following year.
Elderly people are required to apply for a property tax stabilization program through the municipality and submit a new application each year.
In addition to the age requirement, the law requires that the applicant must own the home for at least 10 years and be a permanent resident of Maine who meets the requirements for a home exemption.
If the municipality determines that the applicant is eligible, it will stabilize the property tax on the residential area for the tax year in which the program was requested.
The local government then applies for a tax refund to the state based on the increase in the value of the asset.
Stabilization can also be transferred. Eligible homeowners who sell a home in Maine and buy another home can pay a stable property tax amount, and the new municipality receives compensation from the same state.
“Thanks to the county’s ingenuity and the support of my caucuses behind this important initiative, we no longer have to worry about whether older people will be taxed from home someday,” Stewart said. ..