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A Joint Project of the Maine
Association of Interdependent Neighborhoods |
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Volume 8 No. 3 |
September 2004 |
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MAIN
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A Joint Project of the Maine
Association of Interdependent Neighborhoods |
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Volume 8 No. 3 |
September 2004 |
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There’s Help With Property Taxes Available Now!
(For renters too!)In the heat of the debate about property taxes, it is important to point out the help that is available now to people who have trouble paying their property taxes.
Renters and homeowners can get up to $1,000 back in property tax relief! The Maine Property Tax and Rent Refund Program (also known as the “Circuit Breaker” program) provides a maximum refund of $1,000 for both renters (who indirectly pay property taxes too) and for homeowners. Refunds in 2004 are based on your 2003 circumstances. To qualify you must have:
Been a resident of Maine and owned or rented a home in Maine for all of 2003, occupying it for at least 6 of those months and
Had 2003 household income of $30,300 or less for an individual or $46,900 or less if you lived with a spouse or dependent.
If you are a homeowner, you may qualify for a property tax refund if your 2003 property tax bill is more than 4% of your income. If you are a renter, you may qualify if your rent was more than 22% of your income in 2003. To get an application, contact the Maine Revenue Services at 624-7894 or download it at www.maine.gov/revenue. You may apply each year any time between August 1st and December 31st. (This year’s deadline is actually January 3, 2005.)
The Town should abate your taxes if you can’t meet your basic living expenses and pay your property taxes too! Maine’s Property tax abatement law says that if you can’t afford your property taxes because you only have enough income for basic living expenses like mortgage, electricity, heat and food, then you may be eligible for a tax abatement from your town or city based upon poverty. This means that your town or city could decide that you don’t have to pay some or all of your property taxes. To apply you will need to fill out an application form at your town office. If they don’t have a form, you can get one from Pine Tree Legal Assistance ( www.ptla.org ), which has offices in Presque Isle, Machias, Bangor, Augusta, Lewiston and Portland. If you are denied, you should contact Pine Tree Legal Assistance or, if you are 60 or over, Legal Services for the Elderly ( www.mainelse.org : [800] 750-5353) for advice about appealing.
Help for all residents! Maine’s Homestead Exemption. Residents who have owned a home in Maine for at least 12 months and use it as their permanent place of residence can qualify for a $7,000 exemption off the value of their home if it is worth less than $125,000. This would give a person in a town with a tax rate of 17 mills ($17 per $1,000 of property value) $119 off of their property taxes (assuming the town is taxing on the property’s full value). Lower exemptions apply if your home is worth more. You can get an application from your town or city or you can download one from the Pine Tree Legal Assistance website. Submit the application to your local tax assessor’s office. Application deadline is April 1st of the year in which the exemption is first requested. Apply once and you should only need to apply again if you move or if the property changes ownership. If you have already applied, check your tax bill to be sure that you are still getting the homestead exemption.
The Veterans’ Exemption! Maine veterans who:
served on active duty in the Armed Forces during World War I, World War II, the Korean Conflict, the Vietnam War, and the Persian Gulf War (8/7/90 until whenever the date the U.S. Government establishes an end to the war); and
are at least 62 years of age or are receiving compensation for total disability as a veteran, whether service related or non service related,
may qualify for an exemption of up to $5,000 off the value of their home ($7,000 if they served in World War I). For example, a $5,000 exemption in a town with a tax rate of 17 mills and taxing 100% of the value of a home, would save $85 off the property tax bill.
Deceased Veteran’s Families. Also, the widow or widower (who has not remarried), minor child, or widowed parent of a deceased Maine veteran who would be entitled to an exemption if living, or who receives a pension or compensation as the widow or minor child or parent of a veteran, may qualify for an exemption of up to $5,000 off the value of their home ($7,000 for widow or widower of a WWI veteran).
Paraplegic Veterans. Maine veterans who are paraplegic who received a grant from the U.S. Government for specially adapted housing, may qualify for an exemption of up to $47,500 off the value of their home. The widows or widowers of such veterans (if they are not remarried) may also qualify.Application deadline for all veteran exemptions is April 1st of the year in which the exemption is first requested. Apply once and you should only need to reapply if you move. Applications are available on line or may be available at your local town office. Submit the application to your local tax assessor’s office.
Exemption for Blind Residents. Maine residents who are legally blind may be eligible for an exemption of up to $4,000 off the value of their home. For example, a person in a town with a tax rate of 17 mills and taxing 100% of the value of a home, this would save $68 off the property tax bill. Applications are available on line or may be available at your local town office. Submit the application to your local tax assessor’s office before April 1st of the year in which the exemption is first requested.
