An Act To Make Circuitbreaker Program Benefits Proportional If a Resident Moves
Sec. 1. 36 MRSA §6201, sub-§2, as amended by PL 2001, c. 396, §40, is repealed and the following enacted in its place:
Regardless of how many names of individuals appear on the property deed, the person who meets the qualifications described in paragraphs A to C and proves sole responsibility for the payment of the property taxes on the subject property is the claimant with respect to that property. If 2 or more individuals meet the qualifications in paragraphs A to C and share the payment of the rent or the responsibility for the payment of the property taxes, each individual may apply on the basis of the rent paid or the property taxes levied on the homestead that reflect the ownership percentage of the claimant and the claimant's household.
If 2 or more individuals claim the same property, the matter must be referred to the State Tax Assessor, whose decision is final. Ownership of a homestead under this chapter may be by fee, by life tenancy, by bond for deed, as mortgagee or any other possessory interest in which the owner is personally responsible for the tax for which a refund is claimed.
Sec. 2. 36 MRSA §6201, sub-§10, as amended by PL 1997, c. 504, §20, is further amended to read:
Sec. 3. Application. This Act applies to claims for benefits under the Maine Residents Property Tax Program filed on or after August 1, 2007.
SUMMARY
Under the Maine Residents Property Tax Program, also referred to as the Circuitbreaker Program, in order to qualify for a rent or property tax refund, the person must own or rent a homestead for the entire calendar year prior to the year for which the claim is made and be a Maine resident for that entire year. A person who owns or rents a homestead for less than a year is ineligible for benefits. If a person owns more than one homestead during the calendar year, only taxes paid on the homestead occupied as of April 1st of that year are eligible for reimbursement.
This bill allows a person who owns or rents a homestead for at least 6 months of the prior calendar year to obtain a portion of benefits under the Circuitbreaker Program based on the number of months the person occupied the homestead. This bill maintains the current requirement that the person be a resident of Maine for the entire prior year.
This bill also allows a person who owns and occupies more than one homestead during the year to be reimbursed for taxes owed for the time during which the person occupied each homestead. This reimbursement is determined by dividing by 12 months the property tax owed on each homestead during the year for which the claim is filed and multiplying that number by the number of months the property was occupied by the person as a homestead during that year.