Property Tax Stabilization Program
Property Tax Stabilization for Senior Citizens, also known as the Property Tax Stabilization Program (the “Program”), is a State program that allows certain senior-citizen residents to stabilize, or freeze, the property taxes on their homestead. As long as you qualify and file a timely application each year, the tax billed to you for your homestead will be frozen at the amount you were billed in the prior tax year. Eligible residents who move may transfer the fixed tax amount to a new homestead, even if that new homestead is in a different Maine municipality.
Eligibility
To be eligible for the Program, an individual must meet all of the following as
of April 1 of the property tax year for which they are requesting stabilization
(so for applications due December 1, 2022, qualifications must be met as of
April 1, 2023):
1) at least 65 years old,
2) a permanent resident of Maine,
3) have owned a Maine homestead for at least ten years, and
4) be eligible for a homestead exemption on the property they are
placing in the Program.
If your homestead is owned by more than one individual as joint tenants, only
one owner needs to qualify for the Program to participate. There are no income
or asset limitations to qualify.
Frequently Asked Questions
1. Are there income or other limits on who can participate in the Program?
There are no income or asset limitations to participate. As long as you meet
the age, residency, and ownership qualifications, and timely file your
application, you are eligible.
2. What happens if I forget to file my renewal application?
Once you are in the Program, if you fail to timely file an application one year,
the bill for the next tax year would revert to the “normal” amount of tax. You
can apply again the following year, but your new stabilized amount would reset
to the missing year’s normal tax amount.
3. What happens if I move or change my homestead? If you move to a new homestead in a different municipality, you must request that your old municipality notify your new municipality that you are participating in the Program and your stabilized tax amount. In addition, you will need to file a new application with your new municipality.
4. What happens if the tax assessed on my homestead goes down? If the tax assessed for a given year is less than your stabilized amount, you will be billed for the lower amount. If you continue to qualify and file timely applications in subsequent years, your tax will be stabilized at that new, lower amount.
5. What if I no longer wish to participate in the Program? The Program requires annual applications in order to continue participating. If you no longer wish to participate, you can simply not file an application and your homestead will revert to being assessed as it would normally be for that (and subsequent) tax years.