SACO —In their most recent session, the Maine Legislature voted to repeal LD290, the Property Tax Stabilization law. As it existed, the program would have disproportionately favored higher value properties without recognition of a resident’s ability to pay. Because of this, the program’s costs would have ballooned out of control, according to a City of Saco press release.
Although the City of Saco’s Assessing Department administers the Property Tax Stabilization process, it is a state program that can be changed by the Legislature. We encourage residents with questions or concerns to reach out to your local representative.
In LD290’s place is now LD130, which expands both the Senior Property Tax Deferment program and the Property Tax Fairness Credit program:
Senior Property Tax Deferral program
The State Property Tax Deferral Program is a loan program that covers the annual property tax bills of Maine residents who are ages 65 and older and meet income requirements or are permanently disabled. The loan program requires repayment of the loan once the property is sold or becomes part of an estate. Applications must be submitted between Jan. 1 and April 1 to the Assessor’s Office. More information about this program can be found at: www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/DeferralApplicantGuide.pdf
This program is administered by the Maine Revenue Service. Residents over the age of 65 with an annual income of $80,000 or less and liquid assets of $100,000 or less will qualify.
Property Tax Fairness Credit Program
Eligible Maine taxpayers may receive a portion of the property tax or rent paid during the tax year on the Maine individual income tax return whether they owe Maine income tax or not. If the credit exceeds the amount of an individual’s tax due for the tax year, the excess amount of credit will be refunded to you. More information can be found at: www.maine.gov/revenue/taxes/tax-relief-credits-programs/income-tax-credits/property-tax-fairness-credit To take advantage of this program, apply for it on your income tax form. The maximum benefit expanded from $1,500 to $2,000.
Saco has sent mail notifications about the repeal of LD290 to all residents who are current enrollee’s in the Senior Property Tax Stabilization Program. The city is also working with partners for direct outreach, and will continue to update our website at sacomaine.org/seniortax with any new information.
Many other property tax relief programs are available to Saco residents, such as:
• Homestead Exemption: The Homestead exemption reduces the property tax bill of all Saco resident homeowners who apply for the exemption by April 1st and who have owned and lived in their house for the prior 12 months. The exempt amount of $25,000 is deducted from the property’s total taxable value.
• Veteran Exemption: Any Saco resident who was in active service in the armed forces of the U.S during a federally recognized war campaign period and, if discharged or retired under honorable conditions, may be eligible for a $6,000 reduction in taxable value. The veteran must have reached the age of 62 or be receiving a pension or compensation from the U.S Military for total disability.
• Widow/Widower of Veteran Exemption: Any Saco resident who is a non-remarried widow or widower of a veteran who would have been entitled to the veteran exemption, may be eligible for a $6,000 reduction in valuation.
• Blind Exemption: Any Saco resident who is certified to be legally blind by their eye care professional is eligible for a $4,000 reduction in taxable value.
Applications for the above programs can be picked up at the Assessor’s Office or downloaded from the City of Saco’s website – http://www.sacomaine.org/assessing.
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