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June 9, 2005
AUGUSTA – Cities and towns will be able to offer help with local property taxes to low-income residents under a bill the Legislature enacted Wednesday.
The bill, sponsored by Rep. Ray Pineau, D-Jay, authorizes cities and towns to establish local property tax relief programs similar to the state’s Circuit Breaker program, helping those residents who pay a greater proportion of their income to local property taxes or rent.
According to Pineau, cities and towns can choose to help local residents with property taxes by creating a program that will fit the unique needs of each municipality.
“This bill gives local communities an opportunity to offer substantial tax relief to our residents,” Pineau said. “This allows us to make sure help is targeted to those who need it most.”
To take advantage of the new law, cities and towns will have to pass local ordinances, which will provide area residents with an opportunity to participate in the design and creation of new programs. The bill offers several guidelines. For example, relief must be targeted to those with homesteads in the municipality, aid homestead owners and renters, and create a formula to assist those with high ratios of income to tax or rent.
“It’s important to give communities more avenues to meet the needs of their residents while building their economies,” said Rep. Ed Finch, D-Fairfield, a cosponsor of the bill. “Municipalities have already proven they can be very innovative in their economic development plans, and this new law provides more opportunities to grow.”
Benefits under any new program would supplement those provided by the state’s Homestead Exemption and Circuit Breaker programs, which were significantly expanded as part of a tax reform package the Legislature enacted in January. Through LD 1, the Homestead Exemption was nearly doubled and the Circuit Breaker Program was significantly expanded to provide greater relief to Maine residents.
To learn more about this bill go to: http://janus.state.me.us/legis/LawMakerWeb/summary.asp?ID=280014709
Contact:
Rep. Ray Pineau, 897-3898
Rep. Ed Finch, 453-9476
Kaylene Waindle, Communications Director, 287-1433/615-4187