Auburn’s property revaluation and projected tax increases have many homeowners worried – worried enough, in fact, that more than 300 people turned out for a meeting Monday night that has been likened to the beginnings of a tax revolt.
Property values in Auburn have been soaring, which is good news when it comes time to sell. But it can bring a shock when accompanied by an estimated mill rate that translates into a huge tax increase.
For families stretching to make ends meet and for people living on fixed incomes, the prospect of a large tax bill can be daunting. But there is help available from the state.
Earlier this year, the Legislature and governor expanded the state’s property tax rebate program. Maine residents can apply this year, but for homeowners facing a significant increase on next year’s tax bill, the rebate program could also ease that shock.
More than 200,000 Mainers are expected to qualify this year for the expanded program, which is separate from the Homestead Exemption that was also expanded. Both homeowners and renters can apply.
To be eligible, a person had to be a Maine resident for all of 2004, have maintained a homestead and actually have lived in the state for at least six months. To be eligible, an individual must have income less than $74,500 for the year. For a couple, the cutoff is $99,500. Additionally, the person’s property tax bill must be more than 4 percent of the individual’s income. For renters, rent must be more than 20 percent of their income.
The maximum refund is $2,000.
There are separate qualifications for senior citizens or disabled persons, who do not need to meet the 4 percent or 20 percent criteria.
The state offers several examples that illustrate how the refund works:
• George lived alone during 2004 in his own home. His income was $15,000. His property taxes were $2,900. He’s eligible for a refund of $2,000.
• Gary and Samantha are married and live together. Their income was $49,500. Their property taxes were $4,300. They are eligible for a refund of $1,030.
• Mr. and Mrs. Arnold are 68 and retired. Their income from Social Security was $14,600. Their property taxes were $800. They’re eligible for a $200 refund.
The rebate program doesn’t change the dynamics of the Auburn revaluation, and it doesn’t affect how much the city needs to raise in revenue to cover its expenses. But it is a potential source of aid for homeowners struggling to pay their tax bills.
Everyone would be well-advised to see if he or she qualifies to get some money back.
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