Do you fully understand how Maine’s Homestead Exemption and Property Tax Relief Law benefit you as a homeowner? Are you poised to take advantage of them? Let’s take a couple of minutes to spotlight the major tax benefits that homeowners enjoy here in Maine!
Maine’s Homestead Exemption
Maine’s Homestead Exemption was designed by the State to offer property tax relief for certain individuals. It specifically benefits anyone who has owned homestead property in Maine for at least 12 months, and who makes the property they occupy on April 1 their permanent residence.
Earlier this year, Maine’s Homestead Exemption was increased from $20,000 to $25,000 for the property tax years beginning on or after April 1, 2020. And the law also offered another important benefit—this one to your local city or town government – because it increased the State of Maine’s reimbursement to municipalities from 62.5 percent to 70 percent of revenue lost due to the exemption.
If you have questions about various details of Maine’s Homestead Exemption, we suggest you visit this FAQ page.
Property Tax Relief
Tax reforms passed a year ago established the Property Tax Relief Fund for Maine Residents (replacing the Tax Relief Fund for Maine Residents). This law stipulates that funds be used to provide property tax relief payments directly to every Maine resident whose residence qualifies for an exemption under Maine’s Homestead Exemption.
When the fund reaches a target balance, the Treasurer of State is required, by March 1, to mail tax-relief checks to each owner of a qualifying homestead. For example, in January and February 2020 all qualifying homeowners in Maine received a $100 check from the state government.
Maine’s reformed homeowner tax law also exempts solar and wind-energy equipment from your property tax. If you feel you are owed this tax exemption, be sure to file an application with your municipality in the first year for which you seek the exemption.
Here in Maine, the state government and local municipalities have made a very concerted effort to make housing regulations and tax policy as favorable as possible for Maine homeowners. To discover more about how you benefit as a Maine homeowner, we invite you to contact us today.
About Maine Source Homes & Realty
Maine Source Homes & Realty is dedicated to helping you find your perfect home-ownership solution. Whether you wish to buy, sell, or build a home, Maine Source Homes & Realty invites you to benefit from our 48 years of trustworthy experience and expertise.