The growing movement for property tax relief has taken root in Maine, with a new bill before the state legislature that would eliminate property taxes for homeowners aged 65 and older.
Newsweek reports the new bill, LD 1541, would apply to seniors who have lived in Maine for 10 or more consecutive years. Maine currently offers property tax credits to older homeowners, as well as a property tax deferral program.
Property tax rates in Maine average 1.17%, above the national average of 0.9%, with the typical Maine homeowner paying $2,855 a year in bills. Maine House Minority Leader Billy Bob Faulkingham, a Republican, praised the bill by noting, “We have an aging population, and a lot of people on lower income in that age range, and it’s just an incredibly unfair burden to put on them. I think our seniors are a worthy expense and keeping them in their homes is very important.”
Under LD 1541, the state government would reimburse local government for the lost revenues. However, nearly one-quarter of Maine’s population is over 65 – a statistic that raised concern with Maura Pillsbury, a state and local tax policy analyst with the Maine Center for Economic Policy.
“This could end up increasing property taxes for other folks in the community,” said Pillsbury. “This could put municipalities in a position where they can’t fund local services and education.”
I do think we need to do something for seniors as I am in real estate and I hate to see them sell their homes because they can’t afford their taxes. Not long ago, we had a program where a senior could sign up and their taxes would be held at the current amount of that year and charged that amount going forward–great idea! It only lasted a year and was ended! Our state spends lots of money on “welfare”–lower taxes would be a good gift to our seniors..hold the current amount and then make it up out of the proceeds if the home gets sold.