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AUGUSTA (AP) – An estimated 200,000 Mainers will be eligible for property tax rebates under a revamped state tax relief program that begins Monday.

The Maine Legislature in January expanded the Maine Residents Property Tax Program, also known as the “circuit breaker,” as part of a tax relief package.

Under the new guidelines, homeowners will be eligible for rebates if their property taxes exceed 4 percent of family income. There are no income eligibility requirements.

The new rules mean that more people will become eligible for a maximum $2,000 rebate, said Dennis Doiron, director of the income tax division of Maine Revenue Services.

For example, a married couple with a household income of $49,500 and a property tax bill of $4,300 would be eligible for a $1,030 rebate, according to information provided by the agency. It takes about six weeks for the state to process an application, Doiron said.

Renters may also qualify, depending on the cost of rent and a family’s income.

More people will be eligible for assistance because the program’s budget grew from $26 million to $46 million, Doiron said.

The enhanced circuit breaker is part of a package of tax relief measures that also increases state school aid to local communities and expands the Homestead Exemption to give homeowners a break from taxation on the first $13,000 of a home.

The circuit breaker component is designed to give relief directly to taxpayers.

The state is in the process of sending applications to those who applied last year or indicated on their income tax forms that they wanted information. The state also plans to send postcards to everyone who might be eligible and run television ads to get the word out.

The application period continues until May 31, 2006.

“We’re hoping a high percentage of people will apply this fall,” Doiron said.



Information from: Kennebec Journal, http://www.kjonline.com/

AP-ES-07-28-05 0920EDT

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