8388_LGP_MechanicFalls_2022AnnualReport_Web

NOTES FROM THE TAX OFFICE

PROPERTY TAX STABILIZATION- 2022 brought us the rollout of the new Property Tax Stabilization Program for Senior Citizens. If you are a homeowner age 65 or older, and have owned a homestead* in Maine for at least 10 years (does not need to be consecutive years), you may qualify to have your property tax bill stabilized. This means that your real estate taxes will stay frozen at the amount of the bill you receive during the year in which you applied for the program. As long as you continue to re-apply by the deadline each year, your tax bill will continue to stay at this same amount. The deadline has already passed to stabilize your taxes for the upcoming 2023-2024 tax bill. If you missed the deadline this time around, or are newly qualified for the program, we are accepting applications for the December 1 st , 2023 deadline to freeze your taxes on the 2024-2025 tax bill. If you have already applied during the 2022-2023 tax year, you will see your taxes frozen on your next bill. Remember , a new application needs to be submitted each year. Please come see us in the fall to update your enrollment in the program. If you fail to re-apply your tax bill will revert to your regular tax amount. FACT! If your homestead is owned by more than one person, only one needs to qualify. FACT! If you relocate to another town in Maine, your stabilized tax amount will stay with you as you move as long as you continue to meet the qualifications, and submit a new application by December 1 st of each year to your local municipal office. FACT! The state of Maine reimburses the town of Mechanic Falls for the difference between your normal bill amount and your stabilized amount. FACT! If the tax assessed on your homestead is below your stabilized tax amount, you will be billed for the lower amount, and your taxes will be stabilized at this amount moving forward assuming your enrollment in the program stays current. MYTH! Your heirs will be required to pay back the amount you saved while enrolled in the program upon the sale of your house after your passing. Or, you are required to pay back this amount if you sell your house and move away, or stay in Maine and choose not to purchase another home. This is misleading information spreading on social media sites . With the exception of fraudulent use of the program, neither your state or local government will ever reach out for repayment of this money. VETERAN EXEMPTION - If you are a veteran you may qualify for an exemption on the real estate taxes of your primary residence in Mechanic Falls if you served during a federally recognized war period and are at least 62 years old, or are receiving a total disability pension from the U.S. Government. A spouse (not re-married) of a deceased veteran who would have met the qualifications above and/or receives a pension from the U.S. Government as a widowed spouse may also apply for the exemption. Homestead* Exemption- If you have purchased a home in Mechanic Falls and it is your “primary” residence, you may be eligible for the Homestead Exemption. The only requirements are that you are a permanent resident in Maine, and have owned your primary residence in Maine for the past 12 months. FACT! This program is NOT income based.

* Definition of “Homestead”- A property is considered a homestead it is your permanent legal residence, and can be proven with one of the following: Driver’s License, tax return, voter registration, hunting/fishing license, or vehicle registration. A homestead is not a seasonal residence or a secondary residence.

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