Bill > LD559

This bill provides a mechanism for Maine municipalities to stabilize property taxes for senior residents through a local option sales tax and a property tax stabilization program. Specifically, municipalities can choose to impose a 1% sales tax on prepared food and lodging, with the revenue specifically earmarked to offset property tax losses for seniors. To qualify for the property tax stabilization, seniors must be at least 62 years old, be a permanent Maine resident, have owned a homestead in the state for at least 10 years, and apply annually by December 1st. The tax stabilization means that an eligible senior's property tax would remain at the same amount as the previous year's bill. Municipalities must adopt an ordinance to implement the program and can set additional eligibility requirements beyond the state minimums. The local option sales tax revenue can only be used to offset the property tax losses from this senior stabilization program, ensuring the funds are used as intended. Municipalities can also choose to repeal the program through the same process by which it was initially adopted. The bill includes provisions for how the sales tax will be collected, reported, and distributed, and requires a local referendum to approve the sales tax implementation.

Budget and Finance

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=559&snum=132