Bill > LD1665

This bill provides property tax relief to Maine families by modifying the property tax fairness credit for tax years beginning in 2025. The bill increases the "benefit base" (the amount of property taxes or rent used to calculate tax credits) for different taxpayer categories: single individuals will have a benefit base of $2,450, joint filers will have $3,200, heads of household or joint filers with one child or dependent will have $3,250, those with more than one child or dependent will have $4,250, and individuals 65 years or older will have a benefit base of $4,250. Additionally, the bill increases the maximum credit to $2,000 for heads of household or joint filers with children or dependents. A key component of the bill is a requirement for the Department of Administrative and Financial Services' Bureau of Revenue Services to convene a working group to study the property tax fairness credit. This working group will include advocates for low-income and elderly individuals, as well as municipal government representatives, and will focus on making the credit easier to understand, simplifying the application process, and potentially restructuring how the credit is calculated, such as using income brackets instead of the current benefit base method. The working group is expected to report its findings and recommendations to the Joint Standing Committee on Taxation by December 3, 2025.

Budget and Finance

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1665&snum=132