Augusta, Maine — A radical new program aimed at freezing property taxes on senior citizens in Maine faces a major question from local authorities that must be implemented approximately two weeks before it goes into effect. increase.
Measures under radar include median age Second highest home ownership rate.. In 2017, nearly 80% of Maine over the age of 65 owned a home. According to census data.. This means that more than 200,000 people can see property tax payments frozen under this program, and the state has closed the gap with municipalities to reduce tax payments. ..
However, cities and towns do not know how many residents are eligible for the program that Maine must opt in at the city hall each year. It will be higher in the coming years as the population ages and more people enroll in new programs with few income and other restrictions.
The state has provided only the small amount of money it needs so far, and this is just one of the reasons some local government employees are worried about doing so.
Kelly Reichtmann, tax assessor at Camden and Rockport, said: “So it will have an administrative impact on us for quite some time.”
The property tax, which mainly funds local governments, is Most difficult for low-income earners..Taxes on seniors and others have been frozen in at least six states, according to National Assembly of Parliament..
The program, sponsored by Senator Tray Stewart of R-Presque Island in the Legislature, is a novelty. Eligible Maine must be 65 years of age or older and must be Homestead Exempt for at least the last 10 years. There are no income restrictions and Maine must apply by December 1st of each year to freeze tax obligations at the previous year’s level.
You can also transfer frozen payments between cities and towns. If older people move from a home in one town to a more valuable home in another, they will pay for the previous home. The second town charges the state the difference between the low payment and the normal payment for the property of the elderly in the town.
Both when the measures were introduced in 2021 Management of Governor Janet Mills When Main City Association The bill said it could violate the Maine Constitution, which states that property taxes must be “assessed equally.” Stewart said The bill was inspired by a 70-year-old member who couldn’t stand the tax increase in a family camp.
The legislative committee opposed the bill, which was stalled for almost a year.The legislative Republicans then revived it as part of it. $ 1.2 billion spending bill It was handed over in June. Parliamentarians immediately sent it to the Democratic governor. The Democratic Governor allowed him to pass unsigned in a year facing the challenge of reelection from former Governor Paul LePage.
State legislators only had to initially provide $ 315,000 for the state to implement the program. Next year, they will have to start covering redemption costs for it to work. State parliamentary accounting firms expect total program costs to increase from $ 2.2 million in the first year to $ 14 million in the third year if tax assessments change or others participate in the program. doing.
The program will come into effect on August 8. Shortly before that, the state budget department plans to publish applications and rules, said spokesman Sharon Huntley.
The group’s lobbyist, Kate Dufour, said talks were already underway at the city’s association to encourage lawmakers to review the law. The program is so generous that it can be a difficult conversation.
Stewart downplayed the concerns of some local civil servants, noting the assessors he spoke to look positively at the law. He said older people in Maine are much more likely to shrink and Congress can fix problems that occur early next year, fearing that people moving across town boundaries will benefit generously. Was disregarded.
“Let’s see what the data says,” he said. “We will overcome this for a year.”
Reichtmann said his town would take steps to ensure that all qualified people were aware of the program. Still, we are afraid that implementation will be “impossible” due to inflexible tax software and potential cash flow issues. The first property tax installment usually expires on October 15th, but the law allows the state to repay the city or town by January 15th.
“This is what happens when decisions are made in a hurry,” Dufour said.