Property Tax Stabilization Program Update

Property Tax Stabilization Program

LD 290 "Property Tax Stabilization for Senior Citizens" has been repealed. 

The LD 290 “Property Tax Stabilization for Senior Citizens” program, enacted in August 2022 was repealed by the Maine Legislature on July 6, 2023, effective October 11, 2023. The popularly regarded program had allowed Maine seniors 65 and older who owned a permanent residence for at least 10 years and were receiving (or eligible for) a homestead exemption, to freeze taxes at the previous year’s level regardless of income. 

The Maine Legislature repealed the program because they realized it disproportionately favored higher value properties without recognition of a resident's ability to pay. The legislature was not willing to shoulder the escalating costs of the program.

The repeal of this program means that the program no longer exists.

It is important to note that this was a State program and, while the City played a role in administering the program, in no way was the Town responsible for the policy objectives of this initiative. Any questions or concerns owners have regarding this repealed program should be directed to your legislative representative. To find your representative, please visit: Maine State Legislature.

The State expanded two existing programs benefiting low-income seniors:

To help lower-income seniors avoid higher property taxes and remain in their homes, the State expanded the following programs:

1. The Property Tax Fairness Credit, which allowed eligible Mainers to take a $1,500 credit, increased to $2,000; it also loosened limits on the program in a way that allows the benefits to remain constant for a Mainer whose spouse passes away.

Note: This program is not administered by the City of Waterville; to claim the credit, you must file Form 1040ME and Schedule PTFC/STFC for the tax year during which the property tax or rent was paid. For help, call 207-624-9784.

For more info, please visit: Property Tax Fairness Credit Summary.

2. The State Property Tax Deferral Program, a lifeline loan program that covers the annual property tax bills of Maine seniors age 65 and older, who cannot afford to pay them on their own, has been expanded. It doubles the income limit on that program to $80,000 and also raises asset limits. Taxes must be paid back when the home is sold or becomes part of an estate.

Note: This program is administered by the State; however, applications must be filed with the Assessor's Office between January 1 and April 1 each year. Applications are forwarded to Maine Revenue Services who review and make the determination for acceptance and approval. Questions can be referred to Maine Revenue Services, Property Tax Division, at 207-624-5600 or prop.tax@maine.gov.

For more info, please visit: State Property Tax Deferral Program.