LIVERMORE – Some taxpayers here have questioned the difference in the way the Maine Homestead Exemption was applied this year, a town official said.

The state did a couple of things different this year, Administrative Assistant Kurt Schaub said.

In the past, the town had used a 95 percent certified ratio when factoring in the Homestead Exemption, and the exemption, no matter the value of the primary residence, was $6,500.

This year the value of the Homestead Exemption fluctuated, and the state required the town to apply the certified ratio of 89 percent to the value of a home when factoring the exemption. The 89 percent ratio was used because the town’s assessment is so old, Schaub said.

An equalization program or revaluation of all property is under way in town, he said.

The Homestead Exemption is applied by the state reducing the amount of value on a home in which people pay taxes.

To qualify for the tax break, the homeowner must be a resident of Maine and have owned the homestead – house, condominium, mobile home – for 12 months prior to April 1 of the current tax year. Homeowners must also declare this residence as their permanent residence.

The exemption was applied using three thresholds of values: less than $125,000, at least $125,000 but less than $250,000, and at least $250,000, Schaub said.

With the 89 percent applied to a home valued at $125,000 the adjusted Homestead Exemption value is $111,250 making the adjusted exemption $6,230.

On a home worth $250,000, the adjusted value is $222,500 and the exemption is $4,450.

After applying the 89 percent certified ratio, an exemption on a $250,000-plus home value is $2,225.

The total number of homestead exemptions granted in Livermore this year was 651. The total amount of the 2003 Homestead Exemption value for this year was nearly $3.9 million.

The town has 565 homesteads that qualified for the exemption with value less than $125,000; 84 homesteads that qualified for the exemption with value at least $125,000 but less than $250,000; and two homesteads that qualified with a value of at least $250,000.

dperry@sunjournal.com

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