As rising residence values burden Maine individuals on mounted incomes, an initiative of the Maine Jobs & Restoration Plan will assist pay property tax payments for Maine seniors and those that are completely disabled
Governor Janet Mills introduced at this time that her Administration is launching the State Property Tax Deferral Program, a lifeline mortgage program by means of the Governor’s Maine Jobs & Restoration Plan that may cowl the annual property tax payments ofeligible Maine people who find themselves ages 65 and older or are completely disabled and who can’t afford to pay them on their very own. The mortgage program will enable Maine’s most susceptible group members to age in place and be sure that property taxes are nonetheless delivered to municipalities. This system requires compensation of the mortgage as soon as the property is offered or turns into a part of an property.
The State Property Tax Deferral Program is modeled on an analogous expired program from the Nineties, this time funded by $3.5 million from Federal American Rescue Plan throughthe Governor’s Maine Jobs & Restoration Plan. It enhances a further Maine Jobs & Restoration Plan funding of $60 million to construct extra housing for Maine individuals. Collectively, these Maine Jobs & Restoration Plan initiatives will help handle Maine’ssurging actual property market, which is making housing tougher to afford and has threatened to displace renters, working class households, older Mainers, and those that are completely disabled from steady housing alternatives.
“Older Mainers and people with disabilities need to stay and age within the consolation of their properties with out worrying they’ll lose them as a result of they’ll’t afford the property taxes,” mentioned Governor Janet Mills. “This program by means of my Maine Jobs & Restoration Plan offers of us with the peace of thoughts that they’ll age safely and securely of their properties. My Administration will proceed to work with the Legislature to deal with property taxes, enhance the provision of housing, and be sure that all Maine individuals, no matter age or revenue, are capable of have a protected, steady place to name residence in our state.”
“The State Property Tax Deferral Program will help those that are older or disabled with no different choice for paying their property taxes, permitting of us to stay at residence, with out hamstringing native budgets,” mentioned Kirsten Figueroa, Commissioner of the Division of Administrative and Monetary Providers. “We’re working with Maine municipalities to course of purposes and funds for the present tax 12 months.”
“I hear from so many individuals in Maine who inform me their property taxes are simply too excessive, and getting increased. This downside is especially troublesome for retired and disabled Mainers who’re on mounted incomes. That’s why I first sponsored a invoice to convey again the Property Tax Deferral Program years in the past, within the 128th Legislature,” mentioned Senator Donna Bailey. “After years of preventing for this program and the aid it can convey to hundreds of Maine individuals, I used to be proud to see it lastly turn out to be legislation. For so long as I’m within the State Home, I’ll maintain preventing for measures that can present actual aid for actual individuals.”
“Whereas everybody desires to age of their properties for so long as attainable, too many older Mainers on mounted incomes have to depart their properties as a result of they can not afford the property taxes. The State Property Tax Deferral Program crafts an ingenious resolution to this downside,” mentioned Jess Maurer, Govt Director of the Maine Council on Getting older. “Governor Mills and the Legislature, particularly sponsor Senator Donna Bailey, are to be counseled for making a self-sustaining program that works for everybody, particularly older Mainers who get to remain of their properties.”
“Municipal leaders commend Governor Mills and members of the Legislature for reinstating Maine’s Property Tax Deferral Program. This program will assist qualifying residents stay of their properties, with out shifting further burdens onto the property taxpayers,” mentioned James Bennett, President of the Maine Municipal Affiliation and Biddeford Metropolis Supervisor. “The adoption of this program, coupled with State funding for 55 % of Ok-12 training bills, returning municipal income sharing distributions to five % of State gross sales and revenue tax income, in addition to incrementally rising State reimbursement beneath the Homestead Exemption program underscores the State’s dedication to decreasing property taxpayer burden. This can be a a lot wanted and welcomed funding in Maine’s communities.”
The Governor has additionally elevated housing alternatives for older Mainers, signing in 2019 a $15 million voter-approved senior housing bond held up by her predecessor. The Governor additionally signed into legislation the one largest state funding in housing in Maine’s historical past and just lately broke floor on a brand new, main housing challenge ensuing from that legislation.
The State Property Tax Deferral Program builds on this work by paying property tax payments to Maine municipalities for any owner-occupied, main residence as long as the proprietor is aged 65 or older and/or completely disabled, earns lower than $40,000 per 12 months, and has liquid belongings beneath $50,000 (or beneath $75,000 if making use of collectively). Full eligibility standards and purposes could also be obtained by way of Maine Income Providers.
Property house owners ought to submit purposes to the municipality the place they stay. Municipalities will work instantly with Maine Income Providers, a division of the Division of Administrative and Monetary Providers, to course of the purposes and associated funds.
With a purpose to maintain the State Property Tax Deferral Program indefinitely, past the unique allocation of $3.5 million in Federal funds, any property tax payments coated by the Program might be repaid when the property is offered or turns into a part of an property.
Along with the State Property Tax Deferral Program throughout the Maine Jobs & Restoration Plan, the Mills Administration has regularly supplied tax aid to Maine individuals by:
The Maine Jobs & Restoration Plan is the Governor’s plan, accredited by the Legislature, to speculate almost $1 billion in Federal American Rescue Plan funds to attain three targets: instant financial restoration from the pandemic; long-term financial development for Maine; and infrastructure revitalization.
It attracts closely on suggestions from the Governor’s Financial Restoration Committee and the State’s 10-12 months Financial Improvement Technique, remodeling them into actual motion to enhance the lives of Maine individuals and strengthen the financial system.
Funding for the Jobs Plan is thru the Federal American Rescue Plan Act, which allotted $4.5 billion in stimulus funds to Maine in 2021.
Coordination of the Jobs Plan is led by the Maine Division of Administrative and Monetary Providers and the Governor’s Workplace of Coverage Innovation and the Future, by means of a brand new Maine Jobs & Restoration Plan Workplace.