State of Maine creates property tax deferral program for qualifying residents

The Maine State Legislature has recently announced a new opportunity for Maine residents to temporarily defer collection of homestead property taxes. Qualifying residents may apply for this program through their local assessing department. The application will then be forwarded to the state to determine eligibility. If approved, the applicant’s property tax will be paid by the state until the applicant either exits from the program or is otherwise found ineligible. At which point, deferred taxes and interest will be due at that time.

To qualify for this deferral, applicants must meet the following requirements:

— The taxpayer must be receiving a homestead exemption

— A taxpayer must be 65 years of age or older or is unable to be employed by reason of disability on April 1st of the year in which the claim is filed

— The taxpayer has income of less than $40,000 for the calendar year immediately preceding the calendar year in which the claim is filed

— The taxpayer, if an individual, has liquid assets of less than $50,000 or, in the case of 2 or more individuals filing a claim jointly, all the individuals together have liquid assets of less than $75,000

— The property must not have an existing municipal lien against it

The state will defer the qualifying taxpayer’s property taxes and place a lien upon the homestead until ineligibility or withdrawal from the program and complete payment of deferred taxes and interest are met.

The application period for the upcoming tax year that starts July 1, 2022 is between Jan. 1 and April. The application is available at https://www.maine.gov/portal/index.html.