The Property Tax Stabilization Program (L.D. 290) was enacted into law on Aug. 8. The state program allows certain senior citizen residents to stabilize, or freeze, the property taxes on their homestead. As long as you qualify and file a timely application each year, the tax billed to you for your homestead will be frozen at the amount you were billed in the prior tax year. Eligible residents who move away may transfer that fixed tax amount to a new homestead, even if that new homestead is in a different Maine municipality.
How It Works:
Once you have applied and are approved to participate in the program, the property tax billed to you for the next tax year will be frozen at the amount you were billed in the previous tax year. You must file a new application each year by Dec. 1 in order to maintain that stabilized tax amount.
For example, if you apply by Dec. 1, 2022 and qualify for the program, the amount of tax billed to you for the April 1, 2023 tax year will be the same as the amount billed to you for the April 1, 2022 tax year. As long as you continue to qualify and to file timely annual renewal applications, the amount you are billed each subsequent year will be frozen at the amount billed for the April 1, 2022 tax year.
The state will reimburse your municipality for the difference between the amount billed to you and the tax that would otherwise be due.
To get started:
To be eligible for the program, an individual must meet all of the following as of April 1 of the property tax year for which they are requesting stabilization (so for applications due December 1, 2022, qualifications must be met as of April 1, 2023):
At least 65 years or older — If the applicant’s homestead is owned by more than one individual as joint tenants, only one owner needs to qualify for the program to participate. There are no income or asset limitations to qualify.
A permanent resident of Maine — If not receiving the homestead exemption (eligibility of the Homestead Exemption is required), documentation of all the following that apply will need to be presented at the time of submission of the application; Maine resident income tax return (Form 1040ME), driver’s license with the address of the homestead for which applicants are requesting stabilization, Hunting/Fishing license with the address for the homestead for which applicants are requesting stabilization, Proof of Excise tax paid within the municipality the applicant is applying, Proof of voter registration within the municipality the applicant is applying and/or other documentation showing proof of permanent residency.
Owned a Maine homestead for at least 10 years — Ten years of homestead ownership is not required to be consecutive. If applicants have owned a homestead in another municipality, proof from that municipality will need to be presented at the time of application submission.
Eligible for a homestead exemption on the property the applicant is placing in the program.
Where to Apply:
Applications are available at the Maine Revenue Services website, Town of Scarborough website: Assessing Department: Tax Relief, or in person at the Scarborough Town Hall. You may also call the Property Tax Division of MRS at (207) 624-5600 to have an application mailed to you. Complete an application and submit by December 1, with any required proof, to the Scarborough Assessor’s office located at Town Hall’s lower level. The Assessing Department will review and approve or deny the applications.
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