An Act To Expand Property Tax Benefits for Retired Citizens
Maine Legislature, Session 123, LD 0527
Committee: Taxation
Sponsors: RICHARDSON, KNIGHT, WEDDELL, LANSLEY, THOMAS
Amends: 36 MRSA §683, 36 MRSA §684, 36 MRSA §685

Legislative Document 
No. 527 
H.P.405 
House of Representatives, February 5, 2007 
An Act To Expand Property Tax Benefits for Retired Citizens 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative RICHARDSON of Warren . 
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MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representatives: KNIGHT of Livermore Falls, WEDDELL of Frankfort and 
Representatives: LANSLEY of Sabattus, THOMAS of Ripley . 
Prinleu Oil recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRS A §683, sub-§l, as repealed and replaced by PL 2005, c. 2, Pt. F, 
§ 1 and as affected by §5, is amended to read: 
1. Exemption amount. Except for assessments for special benefits, and except as 
provided in subsection I-B, the just value of $13,000 of the homestead of a permanent 
resident of this State who has owned a homestead in this State for the preceding 12 
months is exempt from taxation. 
In determining the local assessed value of the 
exemption, the assessor shall multiply the amount of the exemption by the ratio of current 
just value upon which the assessment is based as furnished in the assessor's annual return 
pursuant to section 383. If the title to the homestead is held by the applicant jointly or in 
common with others, the exemption may not exceed $13,000 of the just value of the 
homestead, but may be apportioned among the owners who reside on the property to the 
extent of their respective interests. A municipality responsible for administering the 
homestead exemption has no obligation to create separate accounts for each partial 
interest in a homestead owned jointly or in common. 
Sec. 2. 36 MRSA §683, sub-§l-B is enacted to read: 
I-B. Exemption amount for retired seniors. Except for assessments for special 
benefits, 50% of the just value of the homestead of a retired senior who has owned a 
homestead in this State for the preceding 12 months is exempt from taxation. In 
determining the local assessed value of the exemption, the assessor shall multiply the 
amount of the exemption by the ratio of current just value upon which the assessment is 
based as furnished in the assessor's annual return pursuant to section 383. If the title to 
the homestead is held by the retired senior jointly or in common with others, the 
exemption may not exceed 50% of the just value of the homestead but may be 
apportioned among the owners who reside on the property to the extent of their respective 
interests. A municipality responsible for administering the homestead exemption has no 
obligation to create separate accounts for each partial interest in a homestead owned 
jointly or in common. An exemption granted pursuant to this subsection may not be 
combined with the exemption granted in subsection 1. 
A homestead that is used for 
commercial purposes is not eligible under this subsection. 
As used in this subsection, "retired senior" means a person who: 
A. Is a permanent resident of this State and has had that status for the previous 5 
years; 
B. Is at least 65 years of age; 
C. Is employed fewer than 20 hours per week; and 
D. Has a Maine adjusted gross income, as defined in section 5102, subsection l-C, 
paragraph A, of less than $50,000. 
A retired senior seeking the exemption under this subsection must apply annually for the 
exemption. Notwithstanding section 684, a retired senior may apply for the exemption 
using the retired senior's Maine individual income tax form. 
Page I -123LR0638(OI)-1 
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Sec. 3. 36 MRSA §684, sub-§l, as enacted by PL 1997, c. 643, Pt. HHH, §3 and 
as affected by § 1 0, is amended to read: 
1. 
Generally. The bureau shall furnish to the assessor of each municipality a 
sufficient number of printed forms to be filed by applicants for an exemption under this 
subchapter and shall determine the content of the forms. A municipality shall provide to 
its inhabitants reasonable notice of the availability of application forms. An individual 
claiming an exemption under this subchapter for the first time shall file the application 
form with the assessor or the assessor's representative. For an exemption from taxes 
based on the status of property on April 1, 1998, the application must be filed by May 15, 
1998. For taxes based on the status of property after April 1, 1998, the application must 
be filed by April 1 st of the year on which the taxes are based. A person applying for the 
exemption under section 683, subsection I-B who chooses to use the application instead 
of the individual income tax return shall include the person's date of birth and affix a 
signed copy of that person's Maine individual tax form or other attested verification of 
income, as approved by the bureau. 
Sec. 4. 36 MRSA §685, sub-§2, as amended by PL 2005, c. 2, Pt. F, §4 and as 
affected by §5, is further amended to read: 
2. Entitlement to reimbursement by the State; calculation. A T"L;!licipality that 
has approved homestead exemptions under this subchapter may recover from the State 
50% of the taxes lost by reason of the exemptions under section 683, subsection 1 and 
100% of the taxes lost by reason of the exemptions under section 683, subsection I-B 
upon proof in a form satisfactory to the bureau. 
The bureau shall reimburse the 
Unorganized Territory Education and Services Fund for 50% of the taxes lost by reason 
of the exemptioA exemptions under section 683, subsection 1 and 100% of the taxes lost 
by reason of the exemptions under section 683, subsection I-A. 
Sec. 5. 36 MRS A §5219-BB, is enacted to read: 
§5219-BB. Retired senior resident homestead exemption credit 
1. Generally. Except as provided in subsection 2, an individual who is eligible and 
applies for the exemption under section 683, subsection I-B is allowed a refundable 
credit equal to the amount of the exemption granted under section 683, subsection I-B 
against the tax otherwise imposed on that individual by this Part. The credit may not 
exceed the amount of Maine income tax owed. 
2. Choice of filing for same property tax year. A person may not claim for the 
same property tax year a credit under this section and an exemption on a form provided 
by the bureau pursuant to section 684. 
3. Returns not required. Notwithstanding section 5220 or any other provision of 
law, an individual who is eligible for this credit is not required to file a Maine income tax 
return. 
Sec. 6. Application. This Act applies to property tax years beginning on or after 
April 1, 2007. 
SUMMARY 
This bill creates the retired senior resident homestead property tax exemption to 
provide a property tax exemption for retired persons of 50% of the just value of that 
person's homestead. A person is eligible if that person: 
1. Is a permanent resident of this State and has had that status for the previous 5 
years; 
2. Is at least 65 years of age; 
3. Is employed fewer than 20 hours per week; and 
4. Has a Maine adjusted gross income of less than $50,000. 
The State is required to reimburse the municipality 100% of the taxes lost due to the 
exemption. 
A person must apply for the exemption annually, either by applying to the 
municipality and providing a copy of the person's income tax form or other suitable 
verification of income or by using the individual income tax form to obtain a refundable 
credit. 
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