MAINE PROPERTY TAX DEFERRAL PROGRAM
In 2021, the Maine Legislature reinstated this property tax deferral program to help seniors and the fully disabled stay in their homes and age in place. For qualified and approved applicants, the State of Maine will pay the property taxes each year. The state will place a lien on the property and all deferred taxes (and accrued interest) are repaid to the state when the property is sold or the applicant passes away.
Two existing State programs benefiting low-income seniors to be 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 taxpayers to take a $1,500 credit, was increased by Legislature in LD 258 to $2,000 for tax years beginning January 1, 2024; it also allows the benefits to remain constant for an eligible taxpayer whose spouse passes away. Note: This is a State program and is not administered by the Town of Fayette. 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: www.maine.gov/revenue/taxes/tax-relief-credits-programs/income-tax-credits/property-tax-fairness-credit
2. The State Property Tax Deferral Program, a lifeline loan program that covers the annual property tax bills of eligible Maine seniors age 65 and older who cannot afford to pay them on their own, has been expanded by the Legislature in LD 258 for applications filed after January 1, 2024. It doubles the income limit to $80,000 and also raises asset limits. Taxes must be paid back when the home is sold or becomes part of an estate. Note: This is a State program and is not administered by the Town of Fayette. Questions on this State managed program can be referred to Maine Revenue Services, Property Tax Division, at 207-624-5600 or email@example.com. For more info, please visit: www.maine.gov/revenue/taxes/tax-relief-credits-programs/property-tax-relief-programs/deferral-program
Fayette is providing the explanations of the programs in this document as a courtesy and for informational purposes only. It is not intended to be legal or tax advice. If you have questions about any of the programs described in this document, you should contact Maine Revenue Services or consult with your own attorney or tax advisor.
LD 290 “PROPERTY TAX STABILIZATION FOR SENIOR CITIZENS” AMENDED BY STATE LEGISLATURE TO ONLY