An Act to Create a Tiered Senior Resident Homestead Exemption
Maine Legislature, Session 131, LD 1650
Committee: Taxation
Sponsors: TERRY, VITELLI, BOYER, CLUCHEY, MATLACK, SACHS
Amends: 36 MRSA §681, 36 MRSA §682-A, 36 MRSA §683, 36 MRSA §684, 36 MRSA §685, 36 MRSA §686-A, 36 MRSA §6281

Legislative Document
No. 1650
H.P. 1062
House of Representatives, April 13, 2023
An Act to Create a Tiered Senior Resident Homestead Exemption
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative TERRY of Gorham.
Cosponsored by Senator VITELLI of Sagadahoc and
Representatives: BOYER of Poland, CLUCHEY of Bowdoinham, MATLACK of St. George, 
SACHS of Freeport.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §681, sub-§4-A is enacted to read:
4-A.  Permanent senior resident.  "Permanent senior resident" means an individual 
who has established a permanent residence and who the State Tax Assessor determines:
A.  Was 65 years of age or older on April 1st of the first year in which an application 
for a homestead exemption was filed under this subchapter; and
B.  Meets the income requirements in section 683, subsection 1-C.
Sec. 2.  36 MRSA §682-A is enacted to read:
§682-A.  Permanent senior resident; factual determination by State Tax Assessor
The State Tax Assessor shall determine annually whether an applicant meets the 
eligibility criteria in section 681, subsection 4-A and shall annually, prior to February 1st, 
provide a list of qualifying permanent senior residents and their exemption levels to the 
municipalities where their homesteads are located.
Sec. 3.  36 MRSA §683, sub-§1-C is enacted to read:
1-C.  Additional exemption for permanent senior residents.  A homestead owned 
by a permanent senior resident eligible for an exemption under subsections 1 and 1-B is 
eligible for an additional exemption.
The homestead of a senior resident that has income of 80% or less of the regional median 
family income for a family of the same size for the calendar year immediately preceding 
the calendar year in which the claim is filed is eligible for an additional exemption of 
$25,000 of the just value of the homestead for property tax years beginning on or after 
April 1, 2024.
The homestead of a senior resident that has income of more than 80% but not more than 
100% of the regional median family income for a family of the same size for the calendar 
year immediately preceding the calendar year in which the claim is filed is eligible for an 
additional exemption of $15,000 of the just value of the homestead for property tax years 
beginning on or after April 1, 2024.
Sec. 4.  36 MRSA §684, as amended by PL 2009, c. 418, §2 and affected by §3, is 
further amended to read:
§684.  Forms; application
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.  The application must be filed on or before April 
1st of the year on which the taxes are based.
1-A.  Permanent senior resident.  Beginning with the April 1, 2024 property tax year, 
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 section 683, subsection 1-C 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 subsection for the first time shall file the application form with the 
State Tax Assessor, which must be filed on or before November 1st prior to the year on 
which the taxes are based.
2.  False filing.  An individual who knowingly gives false information for the purpose 
of claiming a homestead exemption under this subchapter commits a Class E crime.  Except 
for a person on active duty serving in the Armed Forces of the United States who is 
permanently stationed at a military or naval post, station or base in the State, an individual 
who claims to be a permanent resident of this State under this subchapter who also claims 
to be a permanent resident of another state for the tax year for which an application for a 
homestead exemption is made commits a Class E crime.
3.  Continuation of eligibility.  The assessor shall evaluate annually the ongoing 
eligibility of property for which a homestead exemption has been approved under this 
subchapter.  The evaluation must be based on the status of the property on April 1st of the 
year on which the homestead exemption is based and the status as a permanent senior 
resident in the notice provided to the municipality as required in section 682-A.  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 exemption 
under this subchapter 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 exemption under 
this subchapter, the owner is entitled to receive the exemption without having to reapply.  
If the assessor determines that the property is no longer entitled to an exemption under this 
subchapter, the assessor shall notify the owner as provided in section 686 that the property 
is no longer entitled to an exemption under this subchapter.
4.  Owner notification.  An owner of property receiving an exemption under this 
subchapter shall notify the assessor promptly when the ownership or use of the property 
changes or there has been a change in permanent senior resident status so as to change the 
qualification of the property for an exemption under this subchapter.
Sec. 5.  36 MRSA §685, sub-§2, ¶D, as enacted by PL 2021, c. 398, Pt. PPPP, §3, 
is amended to read:
D.  For property tax years beginning on April 1, 2022, 73% of the taxes lost by reason 
of the exemptions under section 683, subsections 1 and 1‑B; and
Sec. 6.  36 MRSA §685, sub-§2, ¶E, as enacted by PL 2021, c. 398, Pt. PPPP, §3, 
is amended to read:
E.  For property tax years beginning on or after April 1, 2023, the percentage of the 
taxes lost by reason of the exemptions under section 683, subsections 1 and 1‑B that is 
percentage points over the percentage for the previous year until the percentage of 
reimbursement reaches 100%.; and
Sec. 7.  36 MRSA §685, sub-§2, ¶F is enacted to read:
F.  For property tax years beginning on or after April 1, 2024, 100% of the taxes lost 
by reason of the exemption provided under section 683, subsection 1-C.
Sec. 8.  36 MRSA §686-A is enacted to read:
§686-A.  Permanent senior resident; appeals
Pursuant to the authority in section 682-A, if the State Tax Assessor determines that an 
applicant is not entitled to the homestead exemption in section 683, subsection 1-C, the 
State Tax Assessor shall promptly provide a notice of denial, including the reasons for the 
denial, to the applicant by regular mail.  An applicant that is aggrieved by a determination 
of the bureau under this section may appeal pursuant to section 151.  If the State Tax 
Assessor determines that a property receiving an exemption under section 683, subsection 
1-C in any year within the 10 preceding years was not eligible for the exemption, the State 
Tax Assessor shall immediately notify in writing the municipal assessor where the property 
is located and direct the assessor to supplementally assess the property for which the 
exemption was improperly received, plus costs and interest. The supplemental assessment 
must be assessed and collected pursuant to section 713-B. The bureau shall deduct the value 
of the portion of the supplemental assessment that pertains to any funds previously 
reimbursed to the municipality under section 685 from the next reimbursement issued to 
the municipality.
Sec. 9.  36 MRSA §6281, as enacted by PL 2021, c. 751, §1, is repealed.
Sec. 10.  Effective date. That section of this Act that repeals the Maine Revised 
Statutes, Title 36, section 6281 takes effect November 2, 2023.
SUMMARY
This bill replaces the property tax stabilization for senior citizens program enacted by 
the 130th Legislature with a tiered homestead exemption program for qualifying permanent 
senior residents in the State.  The bill provides that qualifying seniors earning less than 
80% of the regional median family income qualify for an additional $25,000 homestead 
exemption and those earning more than 80% but less than 100% of the regional median 
family income qualify for an additional $15,000 exemption. The bill also requires the State 
to reimburse municipalities for 100% of the property tax loss under the senior resident 
homestead exemption.