October 22, 2024
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Dexter mulls local property tax relief

DEXTER – Dexter may join a handful of other Maine communities in offering qualified homeowners extra property tax relief.

The Town Council on Thursday discussed a proposed ordinance that would allow residents 70 years of age and older who benefit from the state’s property tax relief or circuit-breaker program to apply for local property tax relief.

A public hearing will be held on the proposed ordinance next month.

About 100 people would qualify for the program, according to Dexter Tax Collector David Pearson. If those people chose to participate, about $30,000 would be shifted to other property tax payers, he said.

The proposed ordinance is similar to those in St. Agatha and York, according to Pearson.

David Ledew, director of the property tax division of the Maine Revenue Services, said Friday that about half a dozen communities participate in such a program.

“It is a relatively new program and I think a number of communities are approaching it cautiously, but it is catching on,” Ledew said.

A resident’s request spurred Dexter officials to consider the additional property tax assistance for qualified senior citizens.

Jim Silverman, who made the request but was not present at this week’s council meeting, said Friday his effort is to keep longtime residents in their homes. He said he has seen too many older residents on fixed incomes leave their homes because they could not keep up with the escalating costs of home ownership.

Silverman’s original proposal was to freeze taxes for qualified homeowners and impose a penalty only when they sold their homes. He said town officials told him that was not acceptable by law.

Instead, town officials have proposed an ordinance that would allow a tax credit to homeowners who are at least 70 years old, have lived in Dexter for at least 15 years and benefit from the state’s property tax program.

Under the proposed ordinance, eligible applicants would file by April 1 each year to receive either 15 percent of the refund awarded by the state through the Maine Circuit Breaker Program, or $300, whichever is less.

St. Agatha Town Manager Ryan Pelletier said Dexter’s proposed ordinance is similar to the one his town adopted in March. His town’s ordinance provides assistance to qualified residents who are at least 65 years old, have lived at least 10 years in the community and have received a refund from the state.

Although no applications had been received yet for the local tax relief, Pelletier anticipates many residents will do so next year.

In York, any homeowner whose property’s assessed value is not more than $473,420 can apply for up to $500 in extra property tax relief, according to a York official. Of the 10,000 properties in the community, about 202 homeowners took advantage of the extra help this year.

Silverman hopes the council will join York and St. Agatha. Every little bit will help those on fixed incomes remain in their homes as long as possible, he said.

Correction: This article ran on page B2 in the State edition.

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