LEWISTON — City officials are asking senior citizens to let city staff know if they will be applying for Homestead Exemptions for their property tax bills this year.
City Assessor Bill Healey said it’s a reaction to changes to the exemption that state legislators are considering.
“We’re just trying to get the word out,” Healey said. “This is a proposal that’s in the budget and it could happen and become an issue. We’re trying find a way that we can get this information now, before the tax rolls are settled.”
Gov. Paul LePage’s proposed overhaul of the state’s tax system includes big changes to the Homestead Exemption.
Currently, property tax payers can claim a $10,000 exemption on their home. That reduces the taxable value of their home, reducing their final tax bill.
In Lewiston, the exemption amounts to a $242 reduction in the final tax bill for city homeowners. In Auburn, it amounts to a $210 reduction in the tax bill.
Proposed tax changes in LePage’s budget would eliminate that exemption for most residents, but double it for senior citizens. Lewiston homeowners older than 65 would qualify for a $484 reduction in their tax bill under the governor’s proposal. Auburn seniors would qualify for a $419 reduction.
Homeowners younger than 65 would no longer qualify for the exemption.
Healey said an estimated 5,000 Lewiston residents would lose their homestead exemption, based on Census estimates.
“That’s just an estimate and we don’t know which individuals would still qualify,” Healey said. “The way it’s worded right now, it’s as of April 1, 2015. But we can’t really do anything until the budget actually passes. Any part of the budget could be modified.”
He suggested seniors who will be 65 before April 1, 2015, contact his office at 207-513-3122. They will likely need to provide some form of proof of age, such as a driver’s license or birth certificate.
“Unfortunately, we need to have a plan before the governor’s budget is settled,” he said. “We may not end up needing it, but we need to be prepared.”
Representatives from the city of Auburn could not be reached for comment.
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