PLEASE NOTE: Legislative Information cannot perform research, provide legal advice, or interpret Maine law. For legal assistance, please contact a qualified attorney.
An Act To Stabilize Property Taxes on Homesteads of Individuals Who Are 66 Years of Age or Older
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA c. 908-B  is enacted to read:
CHAPTER 908-B
PROPERTY TAX STABILIZATION FOR SENIOR CITIZENS
§ 6281. Stabilization of property taxes on homesteads of individuals 66 years of age or older
 
1.  Definitions.     As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings:
 
A.  "Eligible homestead" means a homestead occupied by an eligible individual who is eligible for a homestead exemption under chapter 105, subchapter 4-B for the property tax year during which an application for stabilization is made.
 
B.  "Eligible individual" means an individual who:
 
(1) Is 66 years of age or older;
 
(2) Is a permanent resident of the State as defined in section 681, subsection 4; and
 
(3) Received a property tax fairness credit under section 5219-KK during the income tax year preceding the date the application for stabilization was made.
 
C.  "Homestead" has the same meaning as under section 681, subsection 2.
 
D.  "Stabilize" means to maintain the property tax billed to an eligible individual for the individual's eligible homestead at the amount billed for that homestead for the property tax year preceding the date of application for stabilization.
 
2.  Application for stabilization.     An individual may apply by December 1st to the municipality in which the individual's homestead is located requesting that the municipality stabilize the property tax assessed on that individual's homestead for the property tax year beginning on April 1st following the submission of the application. A new application is required for each year for which stabilization is requested.
 
3.  Stabilization for eligible individual.     If a municipality determines that an applicant for stabilization is an eligible individual and that the individual's homestead is an eligible homestead, the municipality shall stabilize the property tax on the individual's homestead billed for the tax year for which stabilization was requested.
 
4.  State compensation.     A municipality that has stabilized property tax for an eligible individual under this chapter may recover from the State 100% of the amount by which the property tax assessed on the homestead of an eligible individual in the usual manner exceeds the stabilized amount of property tax billed under subsection 3. A municipality claiming compensation under this subsection shall submit a claim to the bureau by November 1st of the year in which the property tax was stabilized. The bureau shall review claims and determine the total amount to be paid to each municipality. The bureau shall certify and the Treasurer of State shall pay the amount due to each municipality by January 15th of the year following the year in which the claim for compensation was submitted.
 
SUMMARY
This bill permits a municipality to maintain the property tax on the homestead of a permanent resident who is at least 66 years of age or older at the amount billed in the year prior to an application for stabilization. The amount by which the tax assessed exceeds the stabilized amount must be paid to the municipality by the State. An applicant for stabilization must be a permanent resident of the State and must have received a property tax fairness credit for the income tax year preceding application for stabilization. An application for stabilization must be made each year to continue eligibility.