LD 290 Property Tax Stabilization for Seniors Repealed by State Legislature

• July 17, 2023

LD 290, The “Property Tax Stabilization for Senior Citizens” program, enacted in August 2022, was repealed by the Maine Legislature on July 6, 2023, with an effective date of October 11, 2023. This popular program allowed Maine seniors 65 and older, who owned a permanent residence for at least 10 years and were receiving (or eligible for) a homestead exemption, to freeze taxes at the previous year’s level regardless of income.

Many seniors were expecting to reapply beginning in August, the repeal of this program means there will be no reapplication process for the upcoming year.

Although the program has been repealed, the first-year applications will still be administered. Any currently enrolled senior will not see an increase in their property taxes on their 2023 tax bill, with payments due in September 2023 and March 2024.

Please note that this was a State of Maine Program and while the City of Auburn played a role in its administration, we had no part in its creation or repeal.

Any questions or concerns owners have regarding this program should be directed to your legislative representative. To find your representative, please visit: Maine State Legislature.

You can find more information on the State of Maine website: Property Tax Stabilization Program | Maine Revenue Services

Two Tax Relief Programs Being Expanded

Two existing State programs benefiting low-income seniors have been expanded.

To help lower-income seniors avoid higher property taxes and remain in their homes, two existing State programs are being expanded:

1. The Property Tax Fairness Credit, which currently allows eligible Mainers to take a $1,500 credit, has increased to $2,000; it also loosens limits on the program in a way that allows the benefits to remain constant for a Mainer whose spouse passes away. Note: This program is not administered by the City of Auburn; to claim the credit, you must file Form 1040ME and Schedule PTFC/STFC for the tax year during which the property tax or rent was paid. For help, call 207-624-9784. For more info, please visit:  Property Tax Fairness Credit Summary.

2. The State Property Tax Deferral Program is a lifeline loan program that covers the annual property tax bills of Maine seniors who are age 65 and older who cannot afford to pay them on their own, has been expanded. It doubles the income limit on that program to $80,000 and raises asset limits. Taxes must be paid back when the home is sold or becomes part of an estate. Note: This program is not administered by the City of Auburn; questions on this State managed program can be referred to Maine Revenue Services, Property Tax Division, at 207-624-5600 or prop.tax@maine.gov. For more info, please visit: State Property Tax Deferral Program.

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