Maine's Property Tax Freeze for Seniors

In early August, a law took effect in Maine that will leave many Vermonters thinking “if only...”

Permanent Maine residents 65 or older who have owned a home for at least 10 years may apply through their towns to have their property taxes frozen at their current level. The Maine Policy Institute reports:

The cost of the program is expected to rise significantly as more individuals become eligible and sign up. According to estimates in the 2020 Census, roughly 16% of Maine’s population could potentially qualify for this program, as about 20% of Mainers are over the age of 65 and approximately 80% of that subset are homeowners. The bill’s fiscal note projects that the price tag of reimbursing municipalities will roughly double year-over-year, costing $2.6 million for FY 2023, $7 million for FY 2024, and $14 million for FY 2025.

Expensive for sure, and one wonders what the fiscal impact to Vermonters of such a policy would be. Vermont certainly has far less worthy endeavors that it has spent money on!

The last major attempt to change the way Vermonters paid property taxes came in 2018, as covered by EAI in a roll call which became law. Rather than alleviating the overall tax burden, Vermonters with higher incomes pay more while Vermonters with high-value properties pay less than before the change.

Both Maine and Vermont have a long way to go to achieve anything resembling true fiscal responsibility.

Reactions

Please check your e-mail for a link to activate your account.

Enter Comment Here:

  • Robert Devost
    commented 2022-11-22 16:48:10 -0500
    I am compelled to comment again on the Maine Property Tax Freeze for Seniors.
    First, some background:

    Governor Mills of Maine, then up for and who recently won reelection, wanted to take knock the wind out of a similar proposal from that of her opponent, former Governor LaPage, who long favored in cutting taxes for Seniors. Governor Mills was smart enough to pass this legislation before she would face former Governor LaPage, in his hope to retake being Governor.

    There are many elements that Vermont would have to look at. Would Vermont put an income cap on Seniors that would qualify? Would Vermont change the eligibility length in years as a Vermont primary residence? (vs Maine that I believe requires a 10 year minimum in ones declared primary residence.) How would cities and towns be guaranteed from any property tax revenue loss?

    With Massachusetts passing the “Millionaires Tax”, I see no problem luring those of wealth that may flee Massachusetts for New Hampshire (Or more likely Florida) that may instead consider Vermont.

    Christian M knows full well, many Seniors in Vermont are not in the millionaire bracket but her concern is only in part legitimate. I hope Christian M knows that many seniors have worked hard and should not be condemned if money was earned by their blood and sweat. Much as not to condemn seniors who struggle.

    We are talking about most Seniors in Vermont, now on fixed incomes, who have paid more than there fair share in taxes, paying over and over for generations in educational taxes and other programs long after those seniors had “skin” or children in such programs. Should seniors still contribute? Yes, but at a far far lower level.

    Vermont property taxes, taxes on military pensions and social security far more punish than protect seniors here in Vermont. What an insult to veterans with a pension in Vermont only putting forth an insulting minimal tax break for veterans living near the poverty line! In most states, military pensions are not taxable!

    The bottom line: Much a Seniors have before you, if you have children that are now in the educational system and more social assistance is needed, then those who have children pay more and face that responsibility as Seniors have before you.

    The Maine tax freeze for Seniors is a trial program, enough to have gotten Governor Mills reelected. I have no doubt Vermont would adapt many changes if ever to act on this. But, act we should!

    Both Sheldon Katz and Christian M both bring merits to their points of view.

    Lets hope Montpelier can work with both to make that ugly sausage into legislation that will give Seniors the tax relief they need and have earned!
  • Sheldon Katz
    commented 2022-11-22 11:31:08 -0500
    Responding to Christian M, you complain that the Maine law is not “fair,” but you do not identify the standard of fairness. By any standard, the current property tax regime is not “fair.” It could be argued that Maine’s new law is “fair” because those over 65 of age are unlikely to currently have school age children and to have had school age for some years. Since they are not currently imposing costs and have been contributing revenue for some years without imposing costs, it is fair that they should receive some relief. While the Maine law is crude, it is in some sense fair, which is more than can be said for the current abomination that is Vermont’s property tax regime.
  • Sheldon Katz
    commented 2022-11-22 11:31:08 -0500
    Responding to Christian M, you complain that the Maine law is not “fair,” but you do not identify the standard of fairness. By any standard, the current property tax regime is not “fair.” It could be argued that Maine’s new law is “fair” because those over 65 of age are unlikely to currently have school age children and to have had school age for some years. Since they are not currently imposing costs and have been contributing revenue for some years without imposing costs, it is fair that they should receive some relief. While the Maine law is crude, it is in some sense fair, which is more than can be said for the current abomination that is Vermont’s property tax regime.
  • Christian M
    commented 2022-11-21 12:05:23 -0500
    Per the Maine Policy Institute “the program does not have any income eligibility requirements.” So we’re just shifting the burden of taxes from ALL seniors, no matter their assets, presence of a mortgage, income, or ability to pay, to workers who have not had equivalent years of time to work, save, and invest? How is it fair to have a working family subsidize multi-millionaire residents who own luxury homes in Stowe? It’s not fair or right. The same issue applies to tax relief for military pensions and social security.

    While these programs might make life affordable for some individuals if they had income restrictions, without income restrictions, it only shifts the burden to a smaller percentage of working individuals who face their own affordability issues.
  • Robert Devost
    commented 2022-11-15 15:31:23 -0500
    Re: Maine’s Property Tax Freeze for Seniors (by David Flemming) is something Vermont should look in to! I have emailed a few prominent State House and State Senate legislators and USPS mail to Governor Scott twice to consider looking in to this tax break for Seniors (to adapt to work in Vermont as it does in Maine) and never received a response from anyone! Seniors need a substantial tax break and Montpelier needs to step up to help, along with real tax relief for those seniors on retired military pensions (not just those on or near the poverty line) and less taxes on Social Security income. Is Vermont affordability too much to ask for Seniors?
  • Robert Devost
    commented 2022-11-15 15:29:56 -0500
    Re: Maine’s Property Tax Freeze for Seniors (by David Flemming) is something Vermont should look in to! I have emailed a few prominent State House and State Senate legislators and USPS mail to Governor Scott twice to consider looking in to this tax break for Seniors (to adapt to work in Vermont as it does in Maine) and never received a response from anyone! Seniors need a substantial tax break and Montpelier needs to step up to help, along with real tax relief for those seniors on retired military pensions (not just those on or near the poverty line) and less taxes on Social Security income. Is Vermont affordability too much to ask for Seniors?
  • David Flemming
    published this page in EAI Blog 2022-11-11 10:03:12 -0500