AUGUSTA - The Legislature's Appropriations and Financial Affairs Committee voted Tuesday to advance a bill sponsored by Rep. Melanie Sachs, D-Freeport, that would appropriate $15 million from the General Fund to fully cover the state's reimbursement to municipalities for costs associated with the now-repealed Property Tax Stabilization Program. The bill would also appropriate $50,000 to reimburse municipalities for administrative costs associated with the implementation of the program.
"Reimbursing municipalities that have lost revenue due to the Property Tax Stabilization Program is a top priority" said Sachs. "Even though we expanded other tax relief programs, we know that we need to assist our towns in meeting their current obligations without delay. I worked with the Department of Administrative and Financial Affairs to not only confirm the amount needed to fully refund municipalities for the tax relief, but also to reimburse towns for the costs incurred in the administration of the program. I'm pleased that the committee voted unanimously to pass this bill."
In 2022, the Legislature enacted LD 290, which created the Property Tax Stabilization Program that allowed residents 65 and over to freeze their property taxes, regardless of income, property value or need if they were a permanent Maine resident, owned a home for 10 years and were eligible for the homestead exemption.
The program had significant flaws and was not financially sustainable. In its short, one-year lifespan, it cost towns double what was anticipated. The program was repealed in last year's supplemental budget, and in its place, the Legislature increased the Property Tax Fairness Credit for Mainers 65 or older from $1,500 to $2,000. The Property Tax Deferral Program was also expanded, raising the maximum income from $40,000 to $80,000 and increasing the maximum asset test to $100,000. This new package provides tax relief for seniors in a targeted and sustainable manner.
Sachs is serving her second term in the Maine House of Representatives and represents House District 102, which includes Freeport. She serves as House chair of the Appropriations and Financial Affairs Committee.
Contact:
Brian Lee [Sachs], c. 305-965-2744