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131st MAINE LEGISLATURE |
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LD 130 |
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LR 29(02) |
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An Act to
Eliminate Senior Citizen Property Tax Stabilization and Expand the Homestead
Property Tax Exemption |
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Fiscal Note for
Bill as Amended by Committee Amendment " " |
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Committee: Taxation |
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Fiscal Note Required: Yes |
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| Fiscal Note |
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FY 2023-24 |
FY 2024-25 |
Projections FY 2025-26 |
Projections FY 2026-27 |
| Net Cost
(Savings) |
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General Fund |
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$0 |
($837,500) |
($17,022,500) |
($31,200,000) |
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| Appropriations/Allocations |
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General Fund |
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$0 |
($30,050,000) |
($46,805,000) |
($62,550,000) |
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| Revenue |
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General Fund |
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$0 |
($29,212,500) |
($29,782,500) |
($31,350,000) |
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Other Special Revenue Funds |
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$0 |
($1,537,500) |
($1,567,500) |
($1,650,000) |
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| Fiscal Detail
and Notes |
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Increasing the
maximum property tax fairness credit for individuals 65 years or older and
indexing the credit for inflation for income tax years beginning on or after
January 1, 2024 will reduce General Fund revenue by $29,212,500 and reduce
Local Government Fund revenue by $1,537,500 in fiscal year 2024-25. Expanding
the elderly property tax deferral program will increase state reimbursements
to municipalities for deferred taxes. The bill includes a General Fund
appropriation of $1,500,000 in fiscal year 2024-25 for this purpose. |
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Termininating the
property tax stabilization program on homesteads of individuals 65 years of
age or older for property tax years beginning on or after April 1, 2024, will
eliminate state reimbursements to municipalities under the program. The bill
includes General Fund deappropriations in fiscal year 2024-25 of $31,000,000
for the reduction in reimbursement for property tax revenue lost and $550,000
for the reduction in mandated cost reimbursement.
The combined impact of the reduced revenue associated with increasing the
property tax fairness credit, the increased reimbursement to municipalities
required by expanding the elderly property tax deferral and decreased state
reimbursement to municipalites associated with eliminating the property tax
stabilization program is General Fund savings of $837,500 in fiscal year
2024-25. |
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