Bill > LD140

This bill modifies the homestead property tax exemption in Maine by gradually increasing the exemption amount for homeowners. Starting from property tax years beginning on or after April 1, 2026, the bill allows an additional $10,000 exemption each year until the total exemption reaches $85,000, on top of existing exemptions. Currently, homeowners can already claim exemptions of $5,000 to $15,000 depending on the tax year. After reaching the $85,000 total exemption in 2032, the State Tax Assessor will begin annually adjusting the exemption amount based on the Chained Consumer Price Index (CPI), which is a measure of inflation that accounts for changes in consumer spending habits. This means the exemption will increase or decrease each year to reflect cost of living changes, specifically using the 12-month period ending June 30th as the reference point. The goal of this bill is to provide increasing property tax relief for homeowners by incrementally raising the amount of a home's value that is exempt from taxation.

Budget and Finance

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=140&snum=132