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

State

Maine

Year

2015

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 based on either property tax owed or rent paid. Rent constituting property tax is considered 15% of annual gross rent (which excludes charges for heat or other utilities). The benefit is 50% of property taxes paid (or rent constituting property taxes paid). The maximum payment is $600, or $900 for people over 65 years old.

How is Benefit Disbursed

Direct payment to taxpayer

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

Household income cannot exceed $33,333 for single filers. For heads of household, married couples filing jointly, or qualifying widow(er)s, the income ceiling is $43,333 if two or fewer personal exemptions are claimed, or $53,333 of more than two personal exemptions are claimed. For married individuals filing separately, the income ceilings are half the amount of the income ceilings for married claimants. 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.

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_RR15

Footnotes

The benefit base and income eligibility amounts will be adjusted annually based on the annualized cost-of-living adjustments for Social Security retirement benefits, to be applied to the application period.

Sources

Me. Rev. Stat. Ann. tit. 36, § 5219-KK (in effect for 2015)
Property Tax Fairness Credit (2014) Maine Department of Revenue [https://www1.maine.gov/revenue/forms/1040/2014/14_1040_sched%20ptfc_download.pdf accessed 2/26/2015]
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