AUGUSTA - The Maine Legislature unanimously voted to enact legislation sponsored by Rep. Steve Moriarty, D-Cumberland, that would allow municipalities to create their own partial property tax deferral programs, increasing property tax relief for seniors while ensuring municipalities have sufficient financial protections.
As amended, LD 1345 would not require a community to create a property tax deferral program, but rather would provide city councils, town councils and select boards with the legislative authority to do so.
"This bill does two important things: It protects older homeowners from displacement during a vulnerable time and it emphasizes the importance of local control," said Moriarty. "As prices rise in Maine's housing market, we need to ensure we are looking out for older Mainers while preserving the authority of self-governance that is a privilege that the residents of Maine's communities take seriously."
A property tax deferral program allows towns to implement programs for qualifying seniors to elect to stabilize their taxes at the current amount. The stabilized amount must continue to be paid every year indefinitely and is not transferable to another community. The payment of taxes over the stabilized amount is deferred until the owner's death, sale of the property or non-occupation as a permanent residence. A lien is created for the deferred amount and continues as the owner participates in the program.
The Maine Municipal Association and the Cumberland Town Council testified in support of the bill at the public hearing.
The bill now heads to the governor's desk for her signature.
Moriarty is serving his fourth non-consecutive term in the Maine House, representing Cumberland, Chebeague Island and Long Island. He serves as a member of the Judiciary Committee.
Contact:
Brian Lee [Moriarty], c. 305-965-2744