Exemptions and Abatements

Exemptions & Abatements

Exemptions

(Title 36, M.R.S. Sections 651-678)

There are several classes of exempt property (property upon which real estate taxes need not be paid) such as government-owned property. In addition, several other personal exemptions exist and are listed below. 

Forms are available on the Maine state website here. All exemption applications must be submitted to the Assessors' office by April 1. Any applications received after April 1 will not be effective until the following year.

 

Homestead Exemption

(Title 36, M.R.S. Sections 681-689)

The 1998 Legislature enacted a new law giving homeowners some property tax relief. Under this law, homeowners are eligible for up to a $25,000 reduction in their permanent residence's property valuation. To be eligible for this exemption you must be a permanent resident of the State of Maine, have owned a homestead property in Maine for 12 months, and claim that the homestead in this municipality is the only property for which you are claiming the exemption.

 

Veteran's Exemption

(Title 36, M.R.S. Section 653) 

A property owner may be eligible for a reduction in the valuation of their property if they:

  • Served during a federally recognized war period in the U.S. Armed Forces or received an Armed Forces Expeditionary Medal; and
  • Are over the age of 62 orare an unmarried widow of a qualifying veteran or are receiving a total disability pension from the U.S. Government.

If the veteran is under 62 but is 100% disabled due to a service-connected disability, he/she might likewise qualify. In any case the veteran must fill out a form and provide proof of service and discharge, such as a copy of their DD214 form or the benefit summary letter issued by the Department of Veterans Affairs (VA). A copy of VA Form 20-5455 may be used if you do not have a benefit summary letter.

For veterans who served during World War II or later, the exemption is $6,000. For veterans serving prior, the exemption is $7,000. Paraplegic veterans may receive an exemption of $50,000 for a specially-adapted housing unit.

 

Blind Exemption

(Title 36, M.R.S. Section 654) 

The residential real estate of residents who are legally blind as determined by the Department of Education Division for the Blind and Visually Impaired may be exempt up to the assessed value of $4,000. Appropriate documentation must be attached to the form to prove eligibility for the exemption.

 

Renewable Energy Exemption

(Title 36, M.R.S. Sections 655(1)(U) & 656(1)(K)

This program exempts renewable energy equipment, such as solar panels, from property tax beginning April 1, 2020. Taxpayers must apply for the credit by April 1 of the first year the exemption is requested.

 

Abatements

(Title 36, M.R.S. Sections 841-850) 

Abatements are reductions in one's property tax bill. They are granted when the Assessor discovers an error in assessment or if the owner points such an error out. If the owner believes that the current value placed on their property is inaccurate, unfair, or overvalued relative to the current real estate market, they may take the following steps, in order:

  • Review the property record card (available in the Assessor's office) to assure the accuracy of its data
  • Check sale prices of similar homes
  • Provide evidence to the Assessor that the property is overvalued
  • Request a valuation review by the Assessor
  • Make a formal abatement request if not satisfied by the Assessor
  • Make a formal appeal to the local Board of Assessment Review.

The property owner has 185 days from the commitment date (which is usually around the second week of August) to file a formal abatement request. The Assessor may abate current fiscal year taxes only. The Council may consider the two prior fiscal years, but only to correct an illegality, error, irregularity in assessment. They may not grant an abatement to correct an error in valuation of property.

 

Abatement Applications are only available in the Assessor's Office.

In making a formal abatement appeal the assessment is presumed valid and the burden is on the taxpayer to show that it is manifestly wrong in relation to just value. CMP v Town of Moscow, 649 A.2d 320 (ME.1994)