Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 813 - PROPERTY TAX FAIRNESS CREDIT › Section 125-813-.02 - HOMESTEAD

Current through 2024-29, July 17, 2024
A.
Generally.
"Homestead" means
				the dwelling owned or rented by the taxpayer or held in a revocable living
				trust for the benefit of the taxpayer and occupied by the taxpayer and the
				taxpayer's dependents as a home. The dwelling must have been occupied as the
				primary residence of the taxpayer during the tax year. A taxpayer may not
				occupy more than one homestead at the same time except in the case of
				individual spouses who, prior to becoming married during the tax year, occupied
				separate homesteads in Maine and who file a married joint Maine tax return. The
				homestead may consist of a part of a multi-dwelling or multipurpose building
				and up to 10 acres of contiguous land upon which the homestead is built.
				Separate parcels of land are considered contiguous if separated solely by a
				road, or public or private right of way.
"Owned" includes possession by a purchaser under a land
				  contract, possession by 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 title to the property but continue to occupy the dwelling
				  as a home until some future event stated in the agreement.
Ownership of a homestead may be by fee, by life tenancy, by
				  bond for a deed, as mortgagee, or any other similar possessory interest
				  provided that the owner is personally responsible to the municipality or taxing
				  authority for the property tax for which the property tax fairness credit is
				  claimed.
B.
"Dwelling"
means an individual house or apartment, duplex unit,
				cooperative unit, condominium unit, mobile home, or mobile home pad.
A dwelling does not include room and board, a nursing home
				  room, or a room in another person's private home.
Occupying the homestead.
The taxpayer must
				  occupy the homestead as the taxpayer's primary residence during the tax year. A
				  taxpayer is considered to have occupied the homestead during a temporary
				  absence due to exigent circumstances (such as illness, hospitalization and
				  military deployment), provided that the taxpayer does not rent the homestead to
				  another person during the period of temporary absence.
C.
Congregate housing / Assisted living
				facilities.
Congregate housing and assisted living facilities generally
				allow individuals to live independently in a house or apartment. However, the
				rent amount generally includes heat, utilities, medical services, housekeeping
				services, transportation, and use of common areas. In addition, meals are
				generally available in a central dining room for an additional charge. An
				individual living in congregate housing or assisted living facilities may
				qualify for the credit, if otherwise eligible, based on the amount of rent paid
				for the right to occupy the house or apartment. Other amounts paid for heat,
				utilities, services, meals, or similar items must be excluded from the rent
				claimed.
D.
Seasonal dwelling
				occupied as a homestead in Maine.
When a taxpayer occupied a seasonal
				dwelling in Maine as a primary residence for part of the tax year and occupied
				an apartment or other dwelling in Maine as a primary residence for the
				remainder of the year, the property tax fairness credit must be determined on
				the basis of the property taxes paid on the seasonal dwelling with respect to
				that part of the tax year during which the taxpayer occupied the seasonal
				dwelling as a primary residence in Maine and on the basis of the property taxes
				paid or rent constituting property taxes paid on the apartment or other
				dwelling with respect to that part of the tax year during which the taxpayer
				occupied the apartment or other dwelling as a primary residence in
				Maine.