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LD290 Property Tax Stabilization for Senior Citizens Application

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LD290 Property Tax Stabilization for Senior Citizens Update

The LD290 Property Tax Stabilization for Senior Citizens program, enacted in August 2022 was repealed by the Maine Legislature on July 6, 2023, with an effective date of October 11, 2023.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 program allowed Maine Seniors 65 and older who owned a permanent residence for at least 10 years and were receiving a homestead exemption, to freeze taxes at the previous year’s level regardless of income.

The repeal of this program means there will be no reapplication process

Although the program has been repealed, your initial application will still be administered this year, FY2024, for the upcoming Tax Commitment in August 2023.   This program will only apply to FY2024 tax bills.   Eligible Old Orchard Beach applicants will only be responsible for the “frozen” property tax bill amount for the FY2023-2024 billing cycle; this amount will be equal to the tax amount the owner was billed in FY2022-2023, unless their new billed amount is lower, in which case they would owe the lower of the two amounts.  Per the law, The State of Maine would be reimbursing the Town for 100% of the difference between the actual and frozen taxes.

Two existing State of Maine programs benefiting low–income seniors to be expanded:

  • Property Tax Fairness Credit:  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 Town of Old Orchard Beach.  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 assistance, call 207-624-9784 or for more information, visit:  https://www.maine.gov/revenue/taxes/tax-relief-credits-programs/income-tax-credits/property-tax-fairness-credit
  • State Property Tax Deferral Program:  Lifeline loan program that covers the annual property tax bills of Maine Seniors age 65 and older who cannot afford to pay them on their own, has been expanded.  It doubles the income limit on this program to $80,000, also raises the asset limits.  Taxes must be paid back when the home is sold or becomes part of an Estate.  Note:  This program is administered by the State of Maine; however, applications must be filed with the Assessor’s Office between January 1st and April 1st each year.  Applications are forward to the Maine Revenue Services who reviews and make the determination for acceptance and approval.  Questions can be referred to Maine Revenue Service, Property Tax Division, at 207-624-5600 or prop.tax@maine.gov.  For more information, visit:  https://www.maine.gov/revenue/taxes/tax-relief-credits-programs/property-tax-relief-programs/deferral-program

Letter from Assessor Karen Fortier