There are several State tax assistance programs available to qualifying property owners. Below is a list of the programs and exemptions available:
Homestead Exemption
The Homestead Exemption is for qualifying individuals who have owned their home for 12 months from April to April of the given year, and that home is their permanent residence. Qualifying property owners receive an exemption that reduces their taxable value by up to $25,000. The application due date is April 1st of every year, and you only need to file the application once as long as you do not move.
Veteran’s Exemption
The Veterans Exemption is for qualifying veterans who are either 100% disabled, or are 62 years or older and served during a recognized war period. Qualifying Veterans receive an exemption that reduces their taxable value by up to $6,000. The application due date is April 1st of every year, and you only need to file the application once as long as you do not move.
Paraplegic Veteran Exemption
The Paraplegic Veteran Exemption is for a Veteran who received a federal grant for specially adapted housing. Qualifying Veterans receive an exemption that reduces their taxable value by up to $50,000. The application due date is April 1st of every year, and you only need to file the application once as long as you do not move.
Blind Exemption
The Blind Exemption is for an individual who is determined to be legally blind. The Blind Exemption reduces the taxable value by up to $6,000. The application due date is April 1st of every year, and you only need to file the application once as long as you do not move.
Renewable Energy Exemption
The Renewable Energy Exemption exempts certain renewable energy equipment (such as solar panels) from taxation. The application due date is April 1st of every year, and you only need to file the application once as long as you do not move.
Property Tax Fairness Credit
Eligible Maine taxpayers may receive a portion of the property tax or rent paid during the tax year on the Maine individual income tax return whether they owe Maine income tax or not. If the credit exceeds the amount of their individual income tax due for the tax year, the excess amount of credit will be refunded to them.
Tree Growth
Tree Growth is a Current Use program for property owners with at least 10 acres of forested land used for commercial harvesting. A Forest Management Plan must be prepared by a certified Forester, and you must harvest in accordance with the Forest Management Plan. The property is then valued for their current use, rather than market value. The application is due by April 1st and must be recertified every 10 years.
Farmland
Farmland is another Current Use program for property owners with at least 5 contiguous acres that are used for farming, agriculture, or horticulture. The parcel must also contribute at least $2,000 gross income from farming activities each year and must be reported to the Assessor on a mandated basis. Properties are valued at their current use, rather than market value. The application is due by April 1st, and there are income reporting requirements.
Open Space
Open Space is also a Current Use program where the land must be preserved or restricted in use to provide a public benefit. Public benefits include public recreation, scenic resources, game management, and wildlife habitat. The municipal assessor is responsible for determining a value placed on open space land. The application is due by April 1st.
Hardship Abatements
By law, “[t]he municipal officers…may, on their own knowledge or on written application, make such abatements as they believe reasonable on the real and personal taxes on the primary residence of any person who, by reason of hardship or poverty, is in their judgment unable to contribute to the public charges.”
The State Property Tax Deferral Program
This State program allows certain individuals to defer a portion or the entirety of their property tax bill on their primary residence. The deferral amount plus interest becomes due when the individual passes away, moves, or sells the property. The Application must be submitted to the municipal assessor between January 1st and April 1st.
Property assessments are likely to increase which translates into a higher overall valuation for the City. This increase means a lower mil-rate will be needed to collect the amount of revenue needed for City, County, and School budgets. The amount the mil-rate will decrease will not be known until the revaluation and commitment is completed.
In a typical revaluation, about 1/3 of property owners’ taxes increase, about 1/3 remain the same, and about 1/3 decrease. All else being equal, your taxes will only go up if your assessment increases more than the average assessment increase.
No. A revaluation is a revenue-neutral process. It’s about fairness. The revaluation redistributes the existing tax burden based on current values. The City only collects the taxes necessary to meet the approved budget payments for the City, School, and County Budgets.
You do not have to let the Assessor or Data Collector into your home. If you refuse entry, you will receive a 706-A request letter with detailed questions about your property. If you do not respond to the request with the asked-for information or within the time frame required, the City will need to estimate your assessment, and you lose your right to appeal (as seen in this 706-A definition).
If you think your assessment is too high after receiving the new assessment letter, you may schedule an appointment for a hearing. There you will be able to say why you think the assessment is too high, and adjustments will be made if necessary.
If the assessment is considered accurate, and you still disagree with the assessment you can file an Abatement Application during the abatement window of 185 days from the commitment date (the date at which assessments are finalized). Commitment is typically in August.
A Revaluation is a process where a municipality updates the property assessments to align closer to the market value. Municipalities are required to maintain certain assessment standards and when the assessment standards fall below, the municipality is required to make adjustments to be in compliance. A Revaluation is comprised of many steps, including data collection, market analysis, table updates, notices to property owners, informal hearings, commitment of taxes, and the mailing of tax bills. In the end, the Revaluation re-distributes the tax burden based on property assessments. A revaluation is revenue neutral and the municipality does not receive any additional tax revenue.
The first and longest step of the revaluation is Data Collection. Data Collectors visit each property to collect data. The Data Collector will also ask for an interior inspection, but you do not have to agree to it. After Data Collection, the City will analyze recent property sales in Rockland. Base rates will be developed using a combination of three approaches to value (cost, market/sales, and income approaches), and applied to your property. Valuation letters are then mailed to property owners with information about their new assessment and how to schedule a hearing to discuss the assessment. When this process is complete, taxes will be finalized based on the assessed values set by the revaluation.
State Law requires a revaluation every ten years. Rockland’s last full revaluation was completed in 2005. Over the past decade, the market value of property has far surpassed the property assessments which caused the City to fall below the minimum assessment standards set by State Law. When the City falls below the minimum assessment standards, the State reduces many reimbursements and exemptions which means that our property owners aren’t getting the full value of exemptions they are entitled to.
No. In a revaluation, typically the overall valuation of the City increases – which means a lower mil rate (tax rate) is needed to collect the same amount of revenue for City, County, and school expenses. (The amount the mil rate decreases can’t be calculated until the revaluation and commitment is completed).
In a typical revaluation, about 1/3 of property owners’ taxes go up, about 1/3 remain the same, and about 1/3 go down. All else being equal, your taxes will only go up if your valuation went up more than the average valuation. If your property value went up less than average, or by an average amount, then your taxes will go down or stay the same.
The overall goal of Data Collection is to gather information to ensure each property owner is paying their fair share of taxes. The Assessor is required to assess each property within their municipality. If the Assessor is unable to inspect the interior of a building, they will do their best to estimate interior details and the interior condition of the building but will be missing key data that is important in producing an accurate assessment.
