As many as a half dozen bills so far are on the table in Augusta during this legislative session aimed at providing state-level property tax relief to Maine homeowners by increasing and expanding the homestead exemption in a variety of ways.

By lowering the tax-assessed value of Mainers’ homes, the homestead exemption helps to reduce the total property tax bill for which homeowners are responsible.

Currently, the homestead exemption allows Mainers to take $25,000 off the total tax-assessed value of their homes.

While some of the proposed bills would increase the value of this exemption for all Maine homeowners, others would provide more targeted relief to certain taxpayers based on age or income level.

Additionally, certain bills would amend the statutes governing the homestead exemption so as it make it easier for Mainers to benefit from it.

For example, LD 264 would eliminate the requirement that homeowners must own a home in Maine for at least twelve months before claiming the homestead exemption.

Sponsored by Rep. Allison Hepler (D-Woolwich), this bill would allow taxpayers in Maine to benefit from the exemption regardless of how recently they become a homeowner.

A public hearing for this bill has been scheduled for Wednesday, March 5 at 10am before the Taxation Committee in Room 127 of the State House.

Click Here for More Information on LD 264

Also seeking to expand what’s covered under the homestead exemption is LD 565, sponsored by Sen. Joe Baldacci (D-Penobscot).

This legislation, if approved, would allow properties held in non-revocable living trusts to be eligible for the homestead exemption.

Currently, only homes owned by the applicant or a revocable living trust qualify for the homestead exemption.

While revocable trusts offer a greater deal of flexibility, irrevocable living trusts generally cannot be changed once they are established.

According to Investopedia, these trusts can help to protect assets in the case of a lawsuit and can impact the way assets are taxed.

A public hearing on this bill will be held at the same time as LD 264, on Wednesday, March 5 at 10am before the Taxation Committee in Room 127 of the State House.

Click Here for More Information on LD 565

The other four bill related to the homestead exemption introduced so far this year pertain to the value of the exemption itself.

Two of these bills would increase the exemption for all Maine homeowners, while the others focus specifically on seniors and those who are low-income.

LD 140, also sponsored by Sen. Baldacci, would increase the homestead exemption by $10,000 annually beginning in 2026 until it reaches a total of $95,000 in 2033.

At this point, the homestead exemption would continue to increase annually in accordance with the cost of living.

A public hearing has not yet been scheduled for this bill, although it has been referred to the Taxation Committee for further consideration.

Click Here for More Information on LD 140

This week, a Republican-led bill was introduced that would immediately increase the homestead exemption to $50,000, effective for the tax year beginning on April 1, 2025.

Referred to the Taxation Committee Thursday, LD 658 was sponsored by House Minority Leader Billy Bob Faulkingham (R-Winter Harbor) and cosponsored by a handful of other Republican lawmakers.

A public hearing has not yet been scheduled for this bill either.

Click Here for More Information on LD 658

Unlike the prior two proposals, LD 7 would only increase the homestead exemption for senior homeowners.

This bill, sponsored by Sen. Rick Bennett (R-Oxford), would raise the homestead exemption to $75,000 for Mainers aged 65 and older who have resided in their home for at least the past ten years.

If approved, seniors would be able to begin claiming the increased exemption this year.

Also referred to the Taxation Committee, a public hearing has not yet been scheduled for this legislation.

Click Here for More Information on LD 7

Introduced this week, LD 570 — sponsored by Sen. Cameron Reny (D-Lincoln) — would increase the homestead exemption to $75,000 beginning in 2026 for those making less than a certain amount of money each year.

To qualify for this increased exemption, individuals must earn less than $100,000. Heads of household may earn up to $150,000, and married couples are able to earn up to $200,000.

The Taxation Committee will be scheduling a public hearing on this bill at some point in the coming weeks.

Click Here for More Information on LD 570

In 2024, many Maine homeowners saw their property tax bills increase by double-digit percentages, placing a significant financial strain on those with fixed incomes.

Considering Maine already has the fourth highest tax burden in the country — and the highest property tax burden of any state — Mainers have been feeling the property tax pinch more than ever.

In recent months, the Maine Wire received numerous messages from taxpayers in towns from Gray to Newcastle to Carthage reporting dramatic property tax hikes reflected in their FY25 bills.

While rising budget costs are often to blame for more expensive property tax bills, many of these increases appear to be the direct result of revaluations that have been conducted in response to the changes that have taken place in Maine’s housing market.

Under Maine’s constitution and state law, real estate must be assessed “according to [its] just value,” which according to case law, is equivalent to its market value — or the price for which it could reasonably be expected to sell.

A law approved by the Legislature in 1975 directed municipalities to have a minimum assessment ratio of 70 percent, meaning that the tax assessed value of a given property is not supposed to be less than 70 percent of its market value.

Generally speaking, municipalities revalue properties when they fall below this 70 percent threshold, whether that be due to the passage of time or a significant shift in the housing market.

Since 2019, home prices in Maine have nearly doubled, according to data tracked by the St. Louis Federal Reserve.

These higher sale price contribute to the increased valuations of houses that aren’t on the market, meaning that Mainers who have owned their homes for 20 years or more are suddenly on the hook for paying twice the property tax — even if their income has hardly grown.