Property Tax Fairness Credit Circuit Breaker (Previously Maine Residents Property Tax and Rent Refund Program: General and Senior Refund Programs)

State

Maine

Year

2022

Variations in Receipt of Benefit

Benefit Varies with Income

Minimum Tax Amount Must be Paid

Other Variation in Receipt of Benefits

Benefit Type

Circuit Breaker

Benefit

The benefit is a refundable credit to the income tax bill. The credit is equal to the amount the benefit base exceeds 5% of the resident's income. The benefit base is the amount of property taxes paid or rent constituting property taxes, up to a certain limit that varies by filing status and number of dependents. The maximum amount of the credit is $1,000, or $1,500 for applicants over 65 years old. Rent constituting property tax is considered 15% of annual gross rent (excluding charges for heat or other utilities).

How is Benefit Disbursed

Credit to the income tax bill

Eligible Property Type

Residential

Characteristics of Eligible Property

Only residential property is eligible for this program. The homestead may consist of a part of a multi-dwelling or multipurpose building and up to 10 acres of contiguous land. Separate parcels of land are considered contiguous if separated solely by a road, or public or private right of way.

Eligibility Criteria

Age

Homeowner

Income Ceiling

Principal Residence

Renter

Description of Eligibility Criteria

Prior year household income may not exceed $42,000 for single filers. For heads of household with one exemption or less, and for married couples filing jointly or qualifying widow(er)s with no exemptions, the income ceiling is $55,000. For heads of household with two or more exemptions, and for married couples filing jointly or qualifying widow(er)s with one or more exemptions, the income ceiling is $68,000. Claimants must have resided in Maine for all 12 months of the tax year and must have rented or owned the property for all 12 months and occupied the property for at least 6 months. Married applicants filing separately are no longer eligible for the benefit.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

Local option regarding program features

State Funding for Local Tax Loss

State reimburses all of the local government tax loss

Description of State Funding for Tax Loss

Claimants are paid directly by the state.

Record ID

ME110_RR22

Footnotes

Effective for tax years 2021 and 2022: The maximum amount of the credit is increased from $750 to $1,000, and from $1,200 to $1,500 for applicants over 65 years old. This change is pursuant to 2021SP1 Me. Laws ch. 398 (HP156; LD221).

Sources

Me. Rev. Stat. Ann. tit. 36, § 5219-KK (in effect for 2022)
Maine, Revenue Services, Property Tax Fairness Credit Application, Schedule PTFC/STFC, Form 1040ME (2021 for filing in 2022)
[https://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/21_1040me_sched_pstfc_dwnldff.pdf Accessed 11/17/2023]
View Archived Source


Maine, Revenue Services, Property Tax Fairness Credit Summary
[https://www.maine.gov/revenue/taxes/tax-relief-credits-programs/income-tax-credits/property-tax-fairness-credit Accessed 11/17/2023]
2021SP1 Me. Laws ch. 398 (HP156; LD221)

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