Deferred Collection of Homestead Property Taxes

State

Maine

Year

2016

Variations in Receipt of Benefit

No Variation in Receipt of Benefits

Benefit Type

Deferral

Benefit

The benefit is a deferral of all property taxes due. This program is being phased-out. Applications must have been filed before 1 April 1991. A deferral constitutes a lien on the property that accrues interest at the rate of 6% per annum. An application for deferral is good for the assessment year in which it was approved. The amount of deferred taxes plus interest is due April 30th of the following assessment year. All deferred taxes and interest are payable if: the claimant dies, or the property is sold, or the claimant moves, or the home is moved out of state.

How is Benefit Disbursed

Other

Eligible Property Type

Residential

Characteristics of Eligible Property

Eligible property includes owner-occupied principal dwelling, either real or personal property, owned by the taxpayer and up to 10 contiguous acres upon which it is located.

Eligibility Criteria

Age

Homeowner

Income Ceiling

Description of Eligibility Criteria

Claimant must be 65 years of age or older and total household income cannot exceed $32,000. The property must be the homestead of the claimant, the claimant must own the property in part or in full, and there must be no legal documents with superior standing prohibiting the deferral of state property taxes on the property.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No 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

The state reimburses municipalities for the full amount of the deferred taxes due. However, the State Tax Assessor is authorized to prorate payments to municipalities for deferral claims if the amount available in the Senior Property Tax Deferral Revolving Account in any fiscal year is insufficient to make full payments to all municipalities.

Record ID

ME108_RR16

Footnotes

Deferrals may be extended in the event the claimant dies. Extensions cannot exceed 5 years, and interest will continue to accrue.

Sources

Me. Rev. Stat. Ann. tit. 36, § 6250 ~ § 6267 (in effect for 2016)

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