Exemptions, Tax Credits, and Deferrals
During the most recent session, the Legislature passed L.D. 290 - "An Act To Stabilize Property Taxes for Individuals 65 or Older Who Own a Homestead for at Least 10 Years." This new law allows certain senior residents to stabilize, or freeze, the property taxes on their homestead. The law goes into effect August 8, 2022, and applies to property tax years beginning April 1, 2023. Maine Revenue Services has provided us with a "Guide for Applicants" as well as an application that also contains some FAQs.
LD 290 (full text of the law)
(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.
As of April 1, 2021, the Homestead Exemption allows for up to a $25,000 reduction in property valuation. 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. If you have owned a home in Maine for 12 months prior to April 1st, and this is your primary residence, Homestead Exemption application (PDF) . Paper copies of this application are available at the Assessor's office. Please note, a valid driver's license with current address matching the address for which the exemption is being claimed is required.
Per Title 36, M.R.S.A. Section 653, property owners who are veterans may be eligible for a reduction in the valuation of their property. You must own a residence in Kennebunk on April 1st of the tax year in question; be a veteran who is not dishonorably discharged; have served during a recognized war period in the U.S. Armed Forces; be over age 62, or be a widow/widower of a qualifying veteran and are not remarried. If a veteran is under 62 years of age but is 100% disabled due to a service-connected disability, he/she might likewise qualify. A veteran must submit an application (PDF) 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 $6,000, beginning April 1, 2008. For veterans serving prior to WWII, the exemption is $7,000. Paraplegic veterans may receive an exemption of $47,500 for a specially adapted housing unit. Paper copies of this application are available in the Assessor's office.
Per 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. Paper copies of this application are available in the Assessor's Office, or you may download the application here.
State of Maine Property Tax Deferral Program
The State of Maine Property Tax Deferral Program is a State Program that allows qualifying individuals to defer payment of the property taxes on their homesteads until they pass away, move, or sell their property.
Property Tax Fairness Credit
The State of Maine offers a Property Tax Fairness Credit to qualifying renters and homeowners. This program is administered by the Maine Revenue Services Income Tax Division.
Local Property Tax Assistance
Kennebunk residents who are homeowners or renters and age 62 or older may be eligible for a supplemental property tax credit. Paper copies of this application (PDF) are available in the Assessor's office, the Tax Collector's office and the Social Services office. Applications must be submitted by July 1st each year.