- Exemptions and Tax Credits
Exemptions and Tax Credits
Exemptions and Tax Credits
(Title 36, M.R.S.A. Sections 651-678)
There are several classes of exempt property (property upon which real estate taxes need not be paid) such as government-owned property. In addition, several other personal exemptions exist. Application forms and bulletins that describe them are available on the State's website. For informational purposes, the exemptions below are depicted in their full amounts and have not been adjusted by the town's certified ratio, as required by law.
Property Tax Stabilization Program for 65+
Property Tax Stabilization for Senior Citizens, also known as the Property Tax Stabilization Program (the “Program”), is a State program that allows certain senior-citizen residents to stabilize, or freeze, the property taxes on their homestead. As long as you qualify and file a timely application each year, the tax billed to you for your homestead will be frozen at the amount you were billed in the prior tax year. Eligible residents who move may transfer the fixed tax amount to a new homestead, even if that new homestead is in a different Maine municipality.
Stabilization Application - The filing deadline for stabilization was December 1, 2022. Next year's application will be in August, 2023. We are waiting on guidance from Maine Revenue Service if there will be changes to the form for yearly re-application. Check back for updates!
Stabilization Guidance for Applicants
Under this law, homeowners are now eligible for up to a $10,000 reduction in their permanent residence's property valuation (the state reduced this from $13,000 in 2010). If you have owned a home in Maine for 12 months prior to April first, you may apply for this program. Forms are available at the Tax Assessor's office or on the State's Website.
Starting April 1, 2016 changes to the homestead exemption will take effect. Current law provides for a homestead exemption in the amount of $10,000 for eligible taxpayers. Starting April 1, 2016, the homestead exemption will increase to $15,000; for April 1, 2017, the homestead exemption will increase to $20,000. Current taxpayers who are receiving the homestead exemption will not be required to reapply for this exemption unless specifically requested by the Assessor's Office. For more information, please see the list of Enacted Legislation - 2015 Session of the Maine Revenue Services Website.
Veteran's Exemption - (Title 36, M.R.S.A. Section 653)
A property owner may be eligible for a reduction in the valuation of their property if they: Own a residence in Kennebunk on April 1 of the tax year in question; Are a veteran who is not dishonorably discharged; Served during a recognized war period in the U.S. Armed Forces; Are over 62 or are an unremarried widow/widower of a qualifying veteran. If the veteran is under 62 but is 100% disabled due to a service-connected disability, he/she might likewise qualify. In any case the veteran must fill out a form and provide proof of service and discharge, such as a copy of their DD214 form. For veterans who served during World War II or later, the exemption is $6000, beginning April 1, 2008. For veterans serving prior, the exemption is $7000. Paraplegic veterans may receive an exemption of $47500 for a specially adapted housing unit. Applications for these exemptions are available in the Tax Assessor's Office or on the State's website.
Blind Exemption - (Title 36, M.R.S.A. Section 654)
The residential real estate of residents who are legally blind as determined by the Department of Education Division for the Blind and Visually Impaired may be exempt up to the just value of $4,000. Applications for this exemption are available in the Assessor's Office or on the State's website.
Property Tax Fairness Credit
The State of Maine's Property Tax and Rent Refund program has been replaced by the Property Tax Fairness Credit. Please be advised that this program is completely administrated through the Maine Revenue Services Income Tax Division. Forms, applications, and publications program can be located on the State's website or (207) 626-8475.