Tax Relief

2024 Property Tax Assistance Applications are available; AGI and Rebate amounts have increased!

The Town of Scarborough offers seniors property tax relief through its local Property Tax Assistance Program (PTAP). To be eligible for this program, the three requirements below must be met:

1. Age: Applicant is age 62 or older as of the application deadline;
2. Residency: Applicant has been a Town resident for at least ten (10) consecutive years as of the application deadline; and
3. Income: Applicant's household Adjusted Gross Income (AGI), includes all adult members, does not exceed $60,000.

Applicants who qualify will receive a tax rebate of up to $1,000 at the end of the year. To qualify, your annual property tax burden must exceed 5% of the household AGI. For mobile homes, we consider rent paid in addition to your tax burden.

***** NOTICE *****

• Applications for 2024 are available in the Assessing Office now;
• Residents that have participated in this program in past years will automatically be mailed an application the week of March 25th; 
• You may access and print the Owners Application or Renters Application form; 
• The application deadline is October 15, 2024.

**NOTICE**

LD 290 “Property Tax Stabilization for Senior Citizens” Repealed by State Legislature

The LD 290 “Property Tax Stabilization for Senior Citizens” program, enacted in August 2022 was repealed by the Maine Legislature on July 6, 2023, effective October 11, 2023. The popularly regarded program had allowed Maine seniors 65 and older who owned a permanent residence for at least 10 years and were receiving (or eligible for) a homestead exemption, to freeze taxes at the previous year’s level regardless of income. 

The Maine Legislature repealed the program because they realized it disproportionately favored higher value properties without recognition of a resident's ability to pay. The legislature was not willing to shoulder the escalating costs of the program.

The repeal of this program means that the program no longer exists.

Although the program was repealed, residents who were eligible for the stablilization program (i.e., had an approved stablization application) would have benefitted for essentially one year. In other words, your taxes would have only been stabilized for the 2023-2024 tax year.

Approximately 1,850 eligible Scarborough applicants were eligible for the "frozen" property tax bill amount for the 2023-2024 billing cycle—this amount was equal to the same tax amount the owner was billed in 2022-2023, unless their new bill amount would have been lower, in which case they would have owed the lower of the two amounts. Per the law, the State reimbursed the Town for 100% of the difference between actual and frozen taxes. 

It is important to note that this was a State program and, while the Town played a role in administering the program, in no way was the Town responsible for the policy objectives of this initiative. Any questions or concerns owners have regarding this repealed program should be directed to your legislative representative. To find your representative, please visit: Maine State Legislature.

State expanded two existing programs benefiting low-income seniors:

To help lower-income seniors avoid higher property taxes and remain in their homes, the State expanded the following programs:

1. The Property Tax Fairness Credit, which allowed eligible Mainers to take a $1,500 credit, increased to $2,000; it also loosened limits on the program in a way that allows the benefits to remain constant for a Mainer whose spouse passes away.

Note: This program is not administered by the Town of Scarborough; to claim the credit, you must file Form 1040ME and Schedule PTFC/STFC for the tax year during which the property tax or rent was paid. For help, call 207-624-9784.

For more info, please visit: Property Tax Fairness Credit Summary.

2. The State Property Tax Deferral Program, a lifeline loan program that covers the annual property tax bills of Maine seniors age 65 and older, who cannot afford to pay them on their own, has been expanded. It doubles the income limit on that program to $80,000 and also raises asset limits. Taxes must be paid back when the home is sold or becomes part of an estate.

Note: This program is administered by the State; however, applications must be filed with the Assessor's Office between January 1 and April 1 each year.  Applications are forwarded to Maine Revenue Services who review and make the determination for acceptance and approval. Questions can be referred to Maine Revenue Services, Property Tax Division, at 207-624-5600 or prop.tax@maine.gov.

For more info, please visit: State Property Tax Deferral Program.

This program provides a measure of property tax relief for certain individuals that have owned homestead property in Maine for at least 12 months and make the property they occupy on April 1st their permanent residence. Property owners would be eligible for an exemption of up to $25,000 (at 100% assessment ratio); the actual impact on your tax bill depends on the mill rate and certified ratio*.

*Since your property taxes are based on the local assessed value, the $25,000 statewide exemption must be adjusted to apply to all property in the state equally. For example, if the certified ratio in Scarborough is 94%, your homestead exemption is computed in the following manner: $25,000 x . 94 = $23,500.

Applications must be submitted by April 1 in order to qualify for the next tax year. Applications received after April 1 will not be effective until the following tax year. However, if you have already applied for this program you do not need to apply again on the same property. If you have recently moved or sold your property, you must reapply for the exemption on your new home, even if you are moving within Scarborough.

Homestead Property Tax Exemption (Title 36, M.R.S.A. Section 681)

The State of Maine offers a Veteran’s Exemption for property owners who meet one of the following criteria:

• Age 62 or older and served during a recognized war period
• Receives 100% disability from the VA
• Paraplegic Veterans
• Surviving spouse, minor child, or widowed parent of a Veteran

Applications must be submitted by April 1 in order to qualify for the next tax year. You must provide the Veteran’s DD 214 with the application. Applications received after April 1 will not be effective until the following tax year.

Veteran Property Tax Exemption Application
Veteran Property Tax Exemption Application (For Widowed Spouse, Minor Child, Widowed Parent)

(Title 36, M.R.S.A. Section 653)

The State of Maine offers a Blind Exemption to homeowners who are legally blind.

Applications must be submitted by April 1 in order to qualify for the next tax year. You must provide a letter from your doctor with the application. Applications received after April 1 will not be effective until the following tax year.

Blind Persons Property Tax Exemption Application

(Title 36, M.R.S.A. Section 654)

Effective April 1, 2022, the Town of Scarborough will begin taxing renewable energy equipment. This equipment can be exempt through the State of Maine Renewable Energy Equipment Exemption application.

Applications must be submitted by April 1 in order to qualify for the next tax year. Applications received after April 1 will not be effective until the following tax year.

Renewable Energy Exemption Application

(Title 36, M.R.S.A. Sect. 655/656)

In 2021, the Maine Legislature reinstated this property tax deferral program to help seniors and the fully disabled stay in their homes and age in place. For qualified and approved applicants, the State of Maine will pay the property taxes each year. The state will place a lien on the property and all deferred taxes (and accrued interest) are repaid to the state when the property is sold or the applicant passes away.

To qualify:

• You must be at least 65 years old or unable to work due to a disability.
• You must own and occupy the property as your principal residence, and you must be receiving a Homestead Exemption on the property.
• All owners must have combined liquid assets of less than $75,000 ($50,000 if a single owner) and combined income of less than $40,000. For applications filed after January 1, 2024, all owners must have combined liquid assets of less than $150,000 ($100,000 if a single owner) and combined income of less than $80,000.
• You must own your property in fee simple (in other words, there can’t be any limitations on your ability to sell or encumber the property),  there must be no municipal liens on your property, you cannot be participating in a municipal deferral program, and there must be nothing preventing deferral in any federal law or rule. For applications filed after January 1, 2024, certain municipal liens are permissible, but there must be no more than 2 years of delinquent property taxes at the time of application for deferral.
• Applications must be filed with the Assessor's Office between January 1 and April 1 each year. Applications are forwarded to Maine Revenue Services who review the application and make the determination for acceptance and approval.

Frequently Asked Questions for Taxpayers

Application & Instructions - Maine Property Tax Deferral Program

Program Guide for Applicants

More information can be found on the State Property Tax Deferral Program website.

Questions on this State managed program can be referred to Maine Revenue Services, Property Tax Division, at 207-624-5600 or prop.tax@maine.gov.