The newly implemented Property Tax Stabilization Program (to help elderly keep their homes) will cost Maine’s younger taxpayers a bundle.
The following has been verified by the Property Tax Division of Maine Revenue Services:
Assume a property qualifies for the tax relief program (the homeowner is at least 65 and has received the homestead exemption for the last 10 years), people in the following situations will keep their property taxes frozen. Younger taxpayers will be subsidizing every dollar not paid by eligible property owners.
• Owner moves to more expensive house.
• Owner renovates or improves their existing house.
• Owner builds another dwelling or structure on their property (think a garage or a mother-in-law dwelling).
• Owner tears down the existing house and builds another (think Ocean Park).
• Town increases the appraisal (think beachfront or lake property, where appraisals increase drastically).
Estimated cost in the fourth year: $13.9 million.
This is a poorly implemented plan. I would suggest if anyone wants to take advantage of this program, for every dollar subsidized by the state, there is a dollar lien on their property to be paid back upon the sale of the house or when inherited.
At some point, the state should get their money back.
John Garon
Old Orchard Beach
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