An Act To Provide Property Tax Relief to Seniors Residing in Maine
Maine Legislature, Session 126, LD 1646
Committee: Taxation
Sponsors: DUTREMBLE, GOODE, BOYLE, JACKSON, VALENTINO, BEAVERS, GRANT, KUSIAK
Amends: 36 MRSA §841

Legislative Document 
No. 1646 
S.P. 637 
In Senate, December 23, 2013 
An Act To Provide Property Tax Relief to Seniors Residing in 
Maine 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Received by the Secretary of the Senate on December 23, 2013.  Referred to the Committee 
on Taxation pursuant to Joint Rule 308.2 and ordered printed. 
DAREK M. GRANT 
Secretary of the Senate 
Presented by Senator DUTREMBLE of York. 
Cosponsored by Representative GOODE of Bangor and 
Senators: BOYLE of Cumberland, JACKSON of Aroostook, VALENTINO of York, 
Representatives: BEAVERS of South Berwick, GRANT of Gardiner, KUSIAK of Fairfield. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §841, sub-§2-A is enacted to read: 
2-A.  Elderly households.  The municipal officers, or the State Tax Assessor for the 
unorganized territory, on written application shall abate the real and personal taxes on an 
elderly household as provided in this subsection. 
A.  As used in this subsection, unless the context otherwise indicates, the following 
terms have the following meanings. 
(1)  "Applicant" means an individual who has filed for abatement under this 
subsection.  "Applicant" includes an individual who has filed an application for 
abatement under this subsection and who was domiciled in this State and owned 
or otherwise maintained a homestead in this State during the entire calendar year 
prior to the year for which abatement is requested and occupied that homestead 
for at least 6 months during that year. 
(2)  "Cooperative housing corporation" means an entity organized for the purpose 
of owning residential real estate in which residents own shares that entitle the 
shareholder to inhabit a certain space within a residential dwelling. 
(3)  "Cooperative property" means the real property, including mobile and 
manufactured homes, owned by a cooperative housing corporation for the 
primary purpose of residential use. 
(4)  "Homestead" means any residential property, including cooperative property, 
in this State assessed as real property owned by an applicant or held in a 
revocable living trust for the benefit of the applicant and occupied by the 
applicant as the applicant's permanent residence or owned by a cooperative 
housing corporation and occupied as a permanent residence by a resident who is 
a shareholder. "Homestead" does not include any real property used solely for 
commercial purposes. 
(5)  "Household" means an applicant and spouse and members of the household 
for whom the applicant is entitled to claim an exemption as a dependent under 
Part 8 for the year for which abatement is requested. 
(6)  "Household income" means all income received by all persons of a 
household in a calendar year while members of the household. 
(7)  "Income" means Maine adjusted gross income determined in accordance with 
Part 8. 
(8)  "Initial date of application" means the date the applicant first applied for 
abatement of property taxes on the homestead that is the subject of the abatement. 
(9)  "Owned" includes a vendee in possession under a land contract, one or more 
joint tenants or tenants in common and possession under a legally binding 
agreement that allows the owner of the dwelling to transfer the property but 
continue to occupy the dwelling as a home until some future event stated in the 
agreement. 
(10)  "Permanent residence" means that place where an individual has a true, 
fixed and permanent home and principal establishment to which the individual, 
whenever absent, has the intention of returning. An individual may have only one 
permanent residence at a time and, once a permanent residence is established, 
that residence is presumed to continue until circumstances indicate otherwise. 
(11)  "Year for which abatement is requested" means the calendar year in which 
the request for abatement is filed. 
B.  An applicant may request an abatement under this subsection if: 
(1)  The applicant is at least 65 years of age and a resident of this State and was 
domiciled in this State and maintained a homestead in this State during the entire 
year for which abatement is requested; 
(2)  The applicant has resided in the homestead for which the abatement is 
requested for at least 5 years; 
(3)  The applicant has been retired for at least 5 years; and 
(4)  The household income of the applicant for the calendar year prior to the year 
for which abatement is requested is no more than $65,000. 
C.  The amount of the abatement available under this subsection is equal to the 
difference between the property taxes levied on the homestead for each property tax 
year following the initial date of application and the property taxes levied on the 
homestead on the initial date of application. 
D.  A person who desires to secure an abatement under this subsection shall make 
written application and file written proof of entitlement with the assessors of the 
place in which the person resides on or before the first day of April.  Notwithstanding 
Title 1, chapter 13, an application and proof of entitlement filed pursuant to this 
paragraph is confidential and may not be made available for public inspection. The 
assessors shall thereafter grant the abatement as determined pursuant to paragraph C 
to the applicant as long as that person meets the requirements of paragraph B until the 
assessors are notified of reason or desire for discontinuance. 
E.  Property conveyed to any person for the purpose of obtaining an abatement under 
this subsection is not entitled to abatement, except property conveyed between 
spouses, and the obtaining of an abatement by means of fraudulent conveyance is 
punishable by a fine of $100 or 2 times the amount of the taxes evaded by the 
fraudulent conveyance, whichever amount is greater. 
F.  If 2 or more individuals claim the same property, the matter must be referred to 
the State Tax Assessor, whose decision is final. Ownership of a homestead under this 
subsection may be by fee, by life tenancy, by bond for deed, as mortgagor or by any 
other possessory interest in which the owner is personally responsible for the tax for 
which abatement is claimed.  Regardless of how many names of individuals appear 
on the property deed, the individual who meets the qualifications described in 
paragraph A, subparagraph (1) and proves sole responsibility for the payment of the 
property taxes on the subject property is the applicant with respect to that property. If 
or more individuals meet the qualifications in paragraph A, subparagraph (1) and 
share the responsibility for the payment of the property taxes, each individual may 
apply on the basis of property taxes levied on the homestead that reflect the 
ownership percentage of the applicant and the applicant's household.  
G.  The assessor shall evaluate annually the ongoing eligibility of property for which 
an abatement has been approved under this subsection. The evaluation must be based 
on the status of the property on April 1st of the year on which the abatement is based. 
The evaluation must include, but is not limited to, a review of whether the ownership 
of the property has changed in any manner that would disqualify the property for an 
abatement under this subsection or whether the owner has ceased to use the property 
as a homestead. Unless the assessor determines that the property is no longer entitled 
to an abatement under this subsection, the owner is entitled to receive the abatement 
without having to reapply. If the assessor determines that the property is no longer 
entitled to an abatement under this subsection, the assessor shall notify the owner that 
the property is no longer entitled to an abatement under this subsection.  
H.  An owner of property receiving an abatement under this subsection shall notify 
the assessor promptly when the status of the owner or ownership or use of the 
property changes so as to change the qualification of the owner or the property for an 
abatement under this subsection. 
I.  An abatement provided pursuant to this subsection is subject to the provisions of 
section 661. 
Sec. 2.  Application.  This Act applies to property tax years beginning on or after 
April 1, 2014. 
SUMMARY 
This bill allows the owner of real property to obtain an abatement from taxes imposed 
on that property if the owner is at least 65 years of age, is a permanent resident of this 
State, has household income of no more than $65,000, has resided in the household for 
which the abatement is sought for at least 5 years prior to application and has been retired 
for at least 5 years.  The amount of the abatement is equal to the difference between the 
property taxes imposed on the residence the year of the initial application and the 
property taxes imposed each year following the year of the initial application.  The effect 
of this bill is to freeze the property taxes for an eligible resident at the amount imposed 
the year the eligible resident first applied for an abatement.  The abatement continues 
until the person is no longer eligible.  The State is required to reimburse a municipality 
50% of the property tax revenue loss suffered by the municipality due to the abatement.