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16-05-2025
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Legislators suggest task force tackle challenge of property tax reform
The Legislature's Taxation Committee hears public feedback on bill proposals in Augusta. (Emma Davis/ Maine Morning Star) With bipartisan agreement that Maine's property tax burden is too high, legislators are pushing for some tweaks to tax credits this year, however they're holding off on substantial reform until a task force can study the issue. Among its work on 18 bills on Thursday, the Taxation Committee removed the policy changes from a bipartisan plan from legislative leadership to provide property tax relief. Instead, the committee members unanimously agreed the bill should be exclusively focused on the creation of a task force that would report back legislative recommendations starting next year. 'The truth of the matter is with 2,000 bills that we're working in five months,' said co-chair Sen. Nicole Grohowski (D-Hancock), 'I actually think taking a break and being able to focus on one thing for a period of time is the way we can get the best outcome for Maine people.' The Maine Legislature is approaching its expected final month of work for the first year of the two-year session and is overall considering dozens of bills that aim to reform property taxes. Some have received favorable votes from the Taxation Committee including on Thursday a plan to expand the Property Tax Fairness Credit. The committee also earlier advanced a proposal to increase the state's tax exemption for homeowners and another to expand property tax relief for veterans and their survivors, with the latter passing both the Maine House of Representatives and Senate this week. The committee's recommendations largely fell in line with the positions of Gov. Janet Mills' administration, including committee members unanimously opposing on Thursday attempts to reinstate previously repealed programs related to property taxes. 'We did take the time and really work the task force,' Rep. Shelley Rudnicki (R-Fairfield) said, referring to the several hours the committee spent Thursday morning hashing out the details of its composition and deadlines. 'I think it makes sense right now to go that way rather than try to piecemeal things.' A bipartisan bill, LD 1770 sponsored by Senate President Mattie Daughtry (D-Brunswick) and co-sponsored by House Speaker Ryan Fecteau (D-Biddeford) and Senate Minority Leader Trey Stewart (R-Aroostook), among others, initially sought to both increase the property tax fairness credit and establish a Real Estate Property Tax Relief Task Force. The committee unanimously decided to advance an amended version of the bill that only included the latter, which now sets LD 1770 on a likely path to passage. The Mills administration had some concerns about the policy changes in LD 1770 given the tight budget year but was fully supportive of the task force component. Stating that they'd like to wait for the recommendations from this task force for major reform, the committee unanimously rejected most of the other property tax bills it considered on Thursday. These included LDs 432, 1304, 1464, 1537, 1591, 1610, 1729 and 1798. 'We are taking all of this, all of this information, seriously,' said Rep. Tracy Quint (R-Hodgdon), 'and that is why we are sending it over to the task force, because they can take the appropriate amount of time to see which bills can be properly worked and implemented.' Other lawmakers withdrew their own bills, including Rep. Steven Foster (R-Dexter) who withdrew LD 614, which sought to modify certain property tax assessment methods. 'I believe a long term answer to this problem requires much more than occasional increases to the Homestead exemption, tax credits, or other temporary fixes,' Foster said. 'I think the task force and its work this bill would establish may provide that answer.' Daughtry had outlined that the task force would be required to be geographically diverse and composed of legislators, economists, tax experts, real estate professionals and representatives of low-income and older residents. The committee added additional specifications, including that those representing low-income and older residents be people with that lived experience and that one member must represent municipalities with fewer than 10,000 residents and different forms of government — i.e. both cities and towns. While the committee had wanted the task force to complete its work within the current 132nd Legislature, it ultimately compromised, given concerns about staff workload in light of changes on the federal level raised by Michael Allen, associate commissioner for Tax Policy in the Department of Administrative and Financial Services. With the Republican majority in U.S. Congress pushing for a budget plan with new tax breaks, cuts to Medicaid and other programs, Maine state government will likely have to return to readjust state spending and operations once the details are finalized, Allen said. 'That means we're looking at conformity sometime in the middle of the summer of a very complicated bill, which is going to probably require this committee to come in to evaluate any proposal by the governor,' Allen said. 'It may take two or three weeks just to figure out what exactly Congress did and its impact on state revenue.' Therefore, the committee agreed to have the task force issue an interim report in January 2026, but also have the ability to continue its work until December 2026, when a final report would be due. Rep. Gregory Lewis Swallow (R-Houlton) was alone in offering a different take on the task force. He thinks limiting it to only studying property taxes is too narrow. 'Everything is synergistic on this issue,' Swallow said. 'When you deal with one tax, you're dealing with another tax.' The state has incrementally expanded the Property Tax Fairness Credit, the latest of which occurred last year. The credit allows taxpayers to receive back a portion of their property tax or rent paid during the tax year, with the value calculated by the degree to which the 'base benefit' exceeds 4% four of a person's annual income. In the 2023 tax year, the state essentially returned just under $80 million to taxpayers through the credit and after the latest expansion the state has returned about $115 million to taxpayers in 2024, though that number may change as returns come in. Allen said 33,463 taxpayers have benefitted from the expansion, with an average tax cut of $678, including 7,672 people who would have earlier been ineligible. Another adjustment could be coming. The committee unanimously voted to advance LD 715, sponsored by Rep. Nina Azella Milliken (D-Blue Hill), which would allow for people over the age of 65 with an annual income of $36,000 or less to receive a credit equal to the amount by which the 'base benefit' exceeds 3% of their annual income, a decrease from the current 4%. Former state Rep. Ron Russell introduced this plan last session, and while his bill passed both chambers, it ultimately did not get funded. On the other hand, the committee voted 8-3 against LD 1665, sponsored by Sen. Anne Carney (D-Cumberland), which covered similar ground but with a wider scope. It proposed increasing the benefit base to varying levels based on age and number of children. The majority of the committee ultimately rejected the plan, with Grohowski and Quint agreeing that the state shouldn't muddy the waters by adding another track for people with dependents to the property tax fairness credit when the state already has a specific child tax credit, which the committee has separately recommended be expanded. Enacted in 2022, the Property Tax Stabilization Program allowed people 65 years old and over to freeze their property taxes at the previous year's level regardless of income, as long as they owned a permanent residence for at least 10 years and were eligible to receive a homestead exemption. Mills allowed the law to take effect without her signature. However, the Legislature repealed that program after just one year in effect, following skyrocketing cost projections, concern about wealthy property owners taking advantage due to a lack of income restrictions and the administrative burden it left on municipalities. The eligibility expansion for the Property Tax Fairness Credit and the creation of a Property Tax Deferral Program had been some of the ways lawmakers tried to soften the blow of this repeal last session. With unanimous votes among those present, the Taxation Committee rejected Republican proposals to reinstate the program, albeit with some changes aimed to address the program's shortcomings. LD 1481, sponsored by Rep. Wayne Parry (R-Arundel), would add income limits for eligibility, and LD 1541, sponsored by Sen. Joseph Martin (R-Oxford), would exempt all Mainers over 65 from property taxes. The latter bill is co-sponsored by Republican leaders, Sen. Trey Stewart of Aroostook and Rep. Billy Bob Faulkingham of Winter Harbor. 'We should have fixed it,' Parry said of the program during a Wednesday press conference, 'not gotten rid of it.' In 2024, the Legislature repealed a law that limited the total levy that could be raised by a municipality via property taxes each year. LD 542, which is sponsored by Rep. Jeffrey Sean Adams (R-Lebanon), proposed reestablishing municipal property tax levy limits. The State and Local Government Committee was split on the proposal and not along party lines. Six legislators voted for its passage, while six voted against it. The majority of the House opposed the bill on Tuesday, with a 79-62 vote against passage, and the Senate tabled it on Wednesday. Regardless of how the Legislature's final votes come down, the Mills administration is also opposed to both bills, so they would likely get vetoed. SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
01-04-2025
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Lawmakers advance plan to expand tax exemption for homeowners
House Minority Leader Billy Bob Faulkingham (R-Winter Harbor) testifies before the Taxation Committee in Augusta. (Photo by Emma Davis/ Maine Morning Star) After hearing a litany of proposals to expand the state's tax exemption for homeowners, the Legislature's Taxation Committee moved forward with one amended plan that would increase the exemption for all people incrementally. In a unanimous vote among those present on Tuesday, the committee voted to advance a plan that would increase the Homestead Property Tax Exemption by $5,000 per year until it reaches a total value of $50,000 from the just value of a home over the course of five years. This plan, which is in LD 140, now heads to the Maine Senate and House of Representatives for approval. Currently, the Homestead Property Tax Exemption provides a reduction for property tax purposes of up to $25,000 from the value of a home. In order to qualify, a homeowner must be a permanent resident of Maine, the home must be their permanent residence and they have to have owned a home in the state for at least one year before applying. As originally proposed by Sen. Joseph Baldacci (D-Penobscot), LD 140 would have increased the tax exemption by $10,000 per year until the total exemption reached $95,000. Baldacci argued that incrementally increasing the tax exemption would be the most fiscally responsible method because it will be more feasible for the general fund to absorb costs. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX The committee agreed, though opted for smaller increments and a smaller overall increase. The smaller increments would now cost the state roughly $14 million per year, compared to double that with the initial proposal, which Rep. Shelley Rudnicki (R-Fairfield) characterized as more reasonable. The amended bill also removes adjustments for inflation after the cap, which lawmakers argued felt less pertinent due to the gradual adjustments. 'It seems like it just makes it extremely complex for everyone and I'm not sure that most taxpayers would even notice that,' said Rep. Gary Friedman (D-Bar Harbor), who proposed the tweaks. Gov. Janet Mills' administration testified against LD 140, and the several other proposed reforms to the homestead exemption, arguing it will shift the property tax burden to other taxpayers and result in an increase in property tax mill rates over time. 'LD 140 would provide broad property tax relief to resident homeowners, regardless of their ability to pay the tax, at a very high cost, when more focused tax relief could be provided at a much lower cost using the Property Tax Fairness Credit or other programs,' Michael Allen, associate commissioner for tax policy in the Department of Administrative and Financial Services, told the committee earlier this month. Last year, lawmakers expanded eligibility to the Property Tax Fairness Credit — which provides refunds for property taxes or rent paid — and created a Property Tax Deferral Program, specifically to soften the blow from the short-lived Property Tax Stabilization Program that allowed older Mainers to freeze their property taxes. The Legislature repealed that program after just one year in effect, following skyrocketing cost projections, concern about wealthy property owners taking advantage due to a lack of income restrictions and the administrative burden it left on municipalities. The Taxation Committee is hearing other proposals aimed at controlling property taxes on Wednesday, including legislation to reinstate the Property Tax Stabilization Program and amend the state constitution to require greater state reimbursement for residential property tax exemptions and increase the minimum homestead exemption to $50,000. Bipartisan efforts to expand property tax exemptions face pushback from Mills administration While advancing Baldacci's proposal, the committee voted Tuesday against four other proposals to expand the homestead exemption in other ways, including through one lump increase or only for particular groups. These rejected proposals included LD 658, sponsored by House Minority Leader Billy Bob Faulkingham (R-Winter Harbor), which would double the exemption from $25,000 to $50,000 of the just value of a home. Two had focused specifically on residents who are 65 years old or older. LD 7, sponsored by Sen. Rick Bennett (R-Oxford), proposes increasing the exemption to $75,000 for that group, while LD 934, sponsored by Rep. Stephen Wood (R-Greene), proposed a greater exemption amount for that group, as well as veterans. LD 570, sponsored by Sen. Cameron Reny (D-Lincoln), would provide an additional tax exemption of $75,000 to families and individuals who make below a certain income, bringing the total tax exemption available for those eligible up to $100,000. The votes against these other plans were also unanimous among those present. The committee has yet to take action on LD 559, sponsored by Sen. Donna Bailey (D-York), which would allow municipalities to adopt a property tax stabilization program for their senior residents approved by local ordinance. SUPPORT: YOU MAKE OUR WORK POSSIBLE
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20-03-2025
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Maine lawmakers weigh property tax relief, even as Mills signals she won't support most efforts
Mar. 19—Economic issues, especially the sharp rise in property taxes driven by inflation and a runaway real estate market, were top of mind for many voters last fall. Now Maine lawmakers who heard those concerns firsthand while campaigning are debating how to respond. But they're finding that any solution — whether it's once again freezing property taxes for older adults, expanding the homestead exemption or allowing municipalities to adopt local option sales taxes — come with a host of concerns and drawbacks, the biggest of which is the enormous cost of relief programs. The Taxation Committee on Wednesday held hearings on six property tax relief bills, and more are on the way. Their fate is uncertain, though, because the Mills administration opposes them all, citing unsustainable costs and exclusion of renters. Instead, the administration urged lawmakers to focus efforts on bolstering existing tax credit programs designed to help older Mainers, low-income homeowners and renters. Mike Allen, the state's associate commissioner of tax policy, said increasing the state's homestead exemption would shift property burden to other property owners and cost the state too much money. He said the Property Tax Fairness Credit program would provide targeted relief at a lower cost, including for renters. "The administration thinks that is the most cost effective way of providing property tax relief," Allen said. "It's a bigger bang for your buck." Property taxes became a hot topic in the previous Legislature, which repealed a new and popular senior property tax stabilization program that had quickly proven to be financially unsustainable. That program froze the property tax bills of people 65 and older and allowed them to pay the same amount each year, even if they expanded their homes or moved to a more expensive home in another community. The law required the state to reimburse municipalities for lost property tax revenue to maintain needed funding for local public safety, schools and other municipal programs. The stabilization program was quietly passed in 2022 and took many municipalities by surprise. Municipalities received an estimated 100,000 applications in the first year. Cost projections for the following two years grew from $21 million to $46 million and were only expected to grow further. That program was replaced by expanding and bolstering two existing programs, including the property tax fairness program, which is a means-tested way of targeting tax relief to people who need it most. People who pay more than 4% of their income in property taxes, or more than 26.67% on rent, qualify. Lawmakers doubled both the maximum income for the tax deferral program to $80,000 and the maximum asset test to $100,000. They also opened the program to taxpayers who are delinquent on their taxes for at least 18 months, who were previously excluded. Lawmakers also increased credit for people 65 and older by $500, to $2,000, and they established a new $4,000 benefit base — which is used to set the benefit amount — for older adults regardless of filing status. That change would allow a surviving spouse to receive the same assistance after their partner dies. Rep. Stephen Wood, R-Greene, said older residents of his rural community saw their property taxes increase by $800 when the stabilization program ended, and town officials estimate another $300 tax increase this year. He said hundreds of his constituents said during his campaign that they were worried high property taxes would force them to sell their homes. "This Legislature has to do something, especially for the seniors and veterans," Wood said. "They're on fixed incomes. People are going to lose their houses." A look at what's been proposed Several of the bills presented to the committee Wednesday sought to expand the Homestead Property Tax Exemption for all or some homeowners. Bill sponsors argued that the exemption is easier for people to access, while the tax credit program requires people to apply for the credit annually with their state income taxes, even though many seniors living off Social Security don't file annual returns. Both House Minority Leader Billy Bob Faulkingham, R-Winter Harbor, and Sen. Joe Baldacci, D-Bangor, presented separate bills aimed at expanding the state's Homestead Exemption, which provides residents who have been in their homes for at least a year a maximum $25,000 exemption on their home value for municipal taxation purposes. Faulkingham's bill, LD 658, would double that exemption to $50,000, while Baldacci's bill, LD 140, would incrementally increase the exemption by $10,000 a year over a six-year period until it reaches $95,000, when it would indexed for inflation. Baldacci said his bill, which includes a Republican co-sponsor, is the one that "most realistically" can be implemented by the state. But Allen noted that Baldacci's bill is estimated to cost $28 million in the first year and ultimately cost $280 million once fully phased in, while Faulkingham's bill would cost an estimated $90 million, since the state reimburses municipalities for up to 76% of their lost property tax revenue. Efforts to expand the homestead exemption were supported by the Maine Association of Realtors and the Maine Municipal Association, because they provide relief to all homeowners. Sen. Rick Bennett, R-Oxford, presented a bill, LD 7, that would expand the exemption to $75,000 for people 65 and older who have lived in their homes for more than 10 years. "During my reelection campaign, one of the most common complaints I heard from my constituents was the unbearable cost and sudden shocking changes to their property taxes," he said. "I'm sure you have all heard similar horror stories from the people in your districts." The Maine Service Centers Coalition, which represents 26 of the state's larger towns and cities, opposed those bills, because they would either lead to a loss of revenue or require an increase in property taxes, since municipalities would not be fully reimbursed by the state. "As service center communities, it is critically important we meet our municipal obligations for the residents of our own cities and towns as well as for those who live around us and rely on our programs, facilities and amenities," the coalition wrote in unsigned testimony to the committee. "For the bills specifying eligibility, the shift would be onto other property owners. The bills providing every eligible resident with a higher exemption would raise tax rates for all property owners." Sen. Donna Bailey, D-Saco, took a different approach. Her bill, LD 559, would give municipalities the opportunity to create a property tax stabilization program for older residents — like the one jettisoned last year despite its widespread popularity because it was financially unsustainable and also benefited wealthy homeowners. To make up for the loss of revenue, Bailey proposed allowing those municipalities to enact a local option sales tax on lodging and restaurants — a perennial proposal that always fails to advance because of concerns that it would increase Maine's overall tax burden and unfairly benefit cities and exclude smaller rural communities that have fewer businesses that would pay the tax. But Allen warned that Bailey's bill would be unsustainable and raised concerns about the local option tax, saying the Maine Constitution states that the state cannot delegate its power of taxation. Each of the bills heard Wednesday will be debated further before any votes. Baldacci urged the committee to take some sort of action this session to address property taxes. "We have a duty to Maine taxpayers to deliver meaningful tax reform that's also fiscally responsible," he said. "I'm supportive of many of these bills coming in front of you, including Rep. Faulkingham's. As long as we can move this issue forward and deliver property tax relief is the most important thing in my mind." Copy the Story Link
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19-03-2025
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Bipartisan efforts to expand property tax exemptions face pushback from Mills administration
The Legislature's Taxation Committee hears public feedback on bill proposals in Augusta. (Emma Davis/ Maine Morning Star) Lawmakers on both sides of the aisle are trying to expand the state's tax exemption for homeowners. Some want increased exemptions for all Mainers, whereas others want to see expansion for certain groups, including seniors, veterans and those with low incomes. There is bipartisan agreement that Maine's property tax system needs reform, with legislators saying it was the most common concern they heard on the campaign trail this fall and sharing stories of Mainers who have lost their homes because of the tax. Maine has the highest property tax burden in the country, a statistic Republicans have reiterated throughout the session when voicing opposition to tax increases of any kind. However, the projected cost of expanding this exemption in any way remains a barrier to change, evidenced by opposition from Gov. Janet Mills' administration during public hearings on the proposals Wednesday. Currently, the Homestead Property Tax Exemption provides a reduction for property tax purposes of up to $25,000 from the value of a home. In order to qualify, a homeowner must be a permanent resident of Maine, the home must be their permanent residence and they have to have owned a home in the state for at least one year before applying. The state previously tried to provide tax relief for Maine's oldest residents in 2022. The Property Tax Stabilization Program allowed those at least 65 years old to freeze their property taxes at the previous year's level regardless of income, as long as they owned a permanent residence for at least 10 years and were eligible to receive a homestead exemption. Mills allowed the law to take effect without her signature. Taxes take center stage in budget debates However, the Legislature repealed that program after just one year in effect, following skyrocketing cost projections, concern about wealthy property owners taking advantage due to a lack of income restrictions and the administrative burden it left on municipalities. While lawmakers last year tried to soften the blow by expanding eligibility to the Property Tax Fairness Credit and creating a Property Tax Deferral Program, the relief from those changes has done little to address the huge property taxes that remain for many seniors, lawmakers argue. However, some of the tax plans being considered this year borrow from the funding model of the Property Tax Stabilization Program, prompting concern among some who testified. But while these bills seek to expand the existing exemption, others are eyeing a restructure. For example, the committee will consider a constitutional amendment to allow municipalities to divide taxes on real estate and personal property equally according to their value. A change to the state constitution would require the support of two-thirds of the Legislature to then send the proposal out to voters to ultimately decide. Sen. Joseph Baldacci (D-Penobscot), along with two other Democratic co-sponsors and one Republican, proposed LD 140, which will increase the tax exemption by $10,000 of the just value of a home starting on or after April 1, 2026. The increases will stop once the total exemption reaches $95,000, but afterwards the exemption amount would be adjusted annually for inflation. Baldacci argued that incrementally increasing the tax exemption would be the most fiscally responsible method because it will be more feasible for the general fund to absorb costs. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX 'By staging these annual increases over a six-year period, we can deliver property tax relief in a completely fiscally responsible manner based on our current state budgetary resources,' Baldacci said. House Minority Leader Billy Bob Faulkingham (R-Winter Harbor) has proposed a smaller overall increase all at once. LD 658, which has nine Republican co-sponsors, would double the exemption from $25,000 to $50,000 of the just value of the home. 'This disconnect between the rising cost of property taxes and stagnant incomes is putting pressure on homeowners,' Faulkingham said. 'Increasing the homestead exemption would provide much needed relief.' While the bill as currently drafted states that this change would begin on or after April 1, 2025, the committee discussed pushing that start date back given the quick turnaround it would require, and Faulkingham said he was open to doing so. 'Many residents, particularly seniors and low to moderate income homeowners, struggle with property tax burdens that exceed their ability to maintain or afford their homes,' Faulkingham said. Those specific groups, as well as veterans, are the focus of the other bills that seek to change this tax exemption. 'Every bill heard today offers the committee potential tools to bring about property tax relief, as has been well established property taxes are on everyone's mind,' said Amanda Campbell, legislative advocate for the Maine Municipal Association, a nonprofit that provides professional services to local governmental entities across the state. However, Campbell said the association is only supportive of LD 140 and LD 658 because it is opposed to targeting such relief to limited groups. Three bills seek to increase the tax exemption for seniors, though by different means and to different degrees. The exemption would increase to $75,000 for residents who are 65 years old or older who have owned a home in Maine for at least 10 years under LD 7, which Sen. Rick Bennett (R-Oxford) proposed along with three other Republican co-sponsors and one Democrat. 'Expanding the homestead exemption, which is a tried and true program that Mainers are already familiar with, simply makes sense,' Bennett said. 'It's administratively very simple.' Michael Allen, associate commissioner for tax policy for the Maine Department of Administrative and Financial Affairs, said the Mills administration opposed this bill and others because of projected costs it would incur the state and because of the 10-year residency requirement, which he argued could be unconstitutional. That residency requirement had been in the Property Tax Stabilization Program. Alternatively, Sen. Donna Bailey (D-York) wants to see changes to the tax exemption made at the local level. Through LD 559, Bailey and six Democratic co-sponsors are seeking to allow municipalities to adopt a property tax stabilization program for their senior residents approved by ordinance. The Property Tax Deferral Program, which Bailey advocated for last year, is often seen as a last resort for Mainers who cannot pay their property taxes. Bailey described LD 559 as a 'next to last resort.' Similar to Bennett's bill, a municipality adopting such an ordinance would have to require the person has owned a home in Maine for at least 10 years. However, the age threshold for this bill is anyone who is at least 62 years old. This bill would allow a municipality to offset the loss of revenue through a local option sales tax approved by referendum. This funding model raised several objections. Campbell from Maine Municipal Association argued it mimics the model used by the Property Tax Stabilization Program, which was repealed due to insufficient funding. Linda Caprara, vice president of advocacy for the Maine State Chamber of Commerce, argued the model would result in some municipalities having more funds than others and not account for seasonal fluctuations or unexpected changes such as tariffs and natural disasters. Rep. Stephen Wood (R-Greene), along with nine Republican co-sponsors, proposed LD 934 as another avenue to provide relief for seniors, as well as veterans. Currently, the $25,000 exemption must be adjusted by the local certified ratio, generally the percentage difference between the fair market value of a home and the local assessed value. This means that unless a municipality has a certified assessment ratio of 100%, the exemption is less than $25,000. Under LD 934, 100% of the exemption amount would be provided regardless of the assessment ratio of the municipality, if a qualified applicant is either at least 65 years old or a veteran. The bill would also require the state to reimburse a municipality for 100% of the revenue lost, compared to the current 76%. Greene told the Taxation Committee he knows the bill won't pass because of the high cost to the state. In addition to that concern, Allen with DAFS argued this proposal in particular would be administratively complex. However, Greene emphasized, as many other lawmakers did Wednesday, that his constituents have voiced to him persistent fears of losing their homes due to the high tax burden. 'We have to do something,' Greene said. 'Especially the seniors and veterans who are on fixed incomes.' Sen. Cameron Reny (D-Lincoln) took a different approach with her proposal to expand the exemption. LD 570 would provide an additional tax exemption of $75,000 to families and individuals who make below a certain income, bringing the total tax exemption available for those eligible up to $100,000. The higher exemption would be available to those who made a federally adjusted gross income for the prior income tax year of less than: $200,000 for a married couple filing jointly, $150,000 for heads of household, and $100,000 for single people or couples filing separately. The Mills administration is also opposed to this plan, with Allen specifically recommending against the eligibility cliffs and estimating the fiscal impact would be an additional burden on the general fund of about $173 million per year. 'I have seen this committee produce really good compromises that can help all Mainers and I also know each committee member here is aware of the current property tax burdens that are causing a lot of stress,' Reny said. 'I offer this bill to you as a possible aide to our constituents, or as a property tax vehicle for the committee to use.' The Legislature is also considering other tweaks to the Homestead Property Tax not discussed on Wednesday, such as removing the 12-month waiting period. The Taxation Committee already voted down a plan to change the definition of 'homestead' under this exemption law that sought to expand eligibility to irrevocable trusts. SUPPORT: YOU MAKE OUR WORK POSSIBLE
