AUGUSTA - A bill sponsored by Rep. Melanie Sachs, D-Freeport, to appropriate $15 million to fully cover the state's reimbursement to municipalities for costs associated with the Property Tax Stabilization Program, was signed into law by Gov. Janet Mills on Wednesday. The bill would also appropriate $50,000 to reimburse municipalities for administrative costs associated with the implementation of the program.
"As a former chair of the Freeport Town Council, I know how important it is for municipalities to have clarity from the Legislature about funding," said Sachs. "Our towns lost revenue due to the implementation of the Property Tax Stabilization Program, and this legislation ensures the Legislature is meeting its obligations to them. Im pleased that the Governor signed this bill into law."
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 The program was repealed in last year's supplemental budget, and in its place, the Legislature increased the Property Tax Fairness Credit for Mainers 65 or older from $1,500 to $2,000.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 Legislature also expanded the Property Tax Deferral Program, raising the maximum income from $40,000 to $80,000 and increasing the maximum asset test to $100,000.
As an emergency measure, the law will go into effect immediately.
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:br />
Brian Lee [Sachs], c. 305-965-2744