By Bonnie Washuk,Staff Writer

AUGUSTA – With a stroke of his pen, Gov. John Baldacci Friday gave the average Maine property tax-payer about $200 in relief, with three or four times that amount for many.

Under the tax-relief law he signed:

• A typical elderly homeowner with an annual income of $14,297 should see their property taxes fall about $800 next year.

• A couple with two children with an annual income of $51,225 should see their property taxes fall $314, according to Maine Revenue Services.

• On average, property tax bills should go down by $207 next year, Baldacci said as he signed the legislation into law.

Taxes in Lewiston could go down more, given that Lewiston is receiving millions of new education dollars under the law. Those dollars are supposed to be used to lower taxes.

Auburn’s taxes should come down more in the second year of the plan, when the amount of education money the city receives will increase. The law says 90 percent of the new education dollars received by towns and cities must be used to lower property taxes.

Baldacci called the law “bold, historic, comprehensive and bipartisan. It creates real property tax relief for those who need it the most, and it provides spending caps at all level of government, state, county and local. “This has never, and I repeat, never been done before.”

As he spoke Friday he was flanked by Maine seniors, members of the Maine Chamber of Commerce and legislators from both parties.

The new law will take effect in September. Some municipalities, especially smaller towns with rising property valuations and fewer students, could see their taxes actually rise. But most are expected to see tax relief next year: 8 percent for homeowners, 6 percent for businesses, said Michael Allen of the Maine Revenue Service.

Lewiston Assistant City Administrator Phil Nadeau wasn’t promising Friday that taxes would go down next year for Lewiston residents, but he did say he’s “encouraged.”

It’s too early to know what impact the new law will have, he said. “We believe we’re going to be receiving the kind of money that makes things hopeful we’ll be able to maintain the trend of keeping taxes equal or below,” he said.

However, Nadeau said if the federal government slashes housing money as threatened, “that would leave a huge hole to cover.” He said, “The full picture’s not in yet.”

It appears “that the news is positive,” Nadeau added. “We have every reason to believe people will be pleased with this budget.”

The new law will especially benefit seniors on fixed incomes, said Jud Dolphin, state director of the AARP.

“We’ve always been concerned that those folks get targeted, meaningful relief. For people on Social Security and something else small, this is going to be a big help to them. That’s what we all wanted,” he said.

One hitch is that those seeking property tax relief through the Circuit Breaker program must apply for the program at their town office. It offers a rebate of up to $2,000 for those who spend 6 percent or more of their income on property taxes.

Some seniors won’t take the steps to apply, Dolphin said. “Mainers have pride.”

Baldacci said Friday he’ll look into changing the program so that seniors don’t have to apply at city hall. That’s important, Dolphin said. “The benefit has to be accessed in a dignified way, or why create a program.”