A version of this article was originally published in The Daily Brief, our Maine politics newsletter. Sign up here for daily news and insight from politics editor Michael Shepherd.
Maine’s sweeping property tax freeze program went into effect on Monday.
The reaction to it has been strong in the state’s high-tax towns. In Cape Elizabeth alone, 214 seniors signed up as of yesterday, with one citing the potential effect from a school redevelopment project in the Portland suburb.
The program snuck under the radar this year. First proposed in 2021 by Sen. Trey Stewart, R-Presque Isle, it was first shot down by a committee but remained alive through 2022 budget discussions.
At that time, Republicans were able to revive it for the small price of $315,000 in administrative costs, even though costs for the whole program are expected to balloon to $14 million in the third year of implementation and would rise from there. Gov. Janet Mills, a Democrat, allowed it to go into law without her signature.
All Mainers 65 and older who have owned a home here for at least 10 years that is eligible for the Homestead Exemption can apply every year to have their taxes frozen at the previous year’s level. This applies even if you move from a low-value area or home to high-value ones. The state will pay towns the difference between frozen taxes and what the full tax value is.
Many local tax assessors across the state are worried about the law. One reason is that the state has not paid for it yet. Another is that it will force changes to the municipal process of tracking tax values, making them calculate values every year that a segment of residents will not be paying. Stewart has dismissed many of these concerns, saying the state can easily weather the program’s first year and consider tweaks after that.
As the long-term gap grows between current tax levels and future ones, the program promises to be a large one that could reshape the way property taxes are considered in Maine. But the program has not been much touted by policymakers in an election year. For example, it is not on Mills’ list of actions she has taken to ease the local tax burden.
Republicans have been more energetic, trying to use it as an early wedge issue in the 2022 campaigns despite easy bipartisan passage. In a recent radio address, Rep. Bruce Bickford of Auburn said his party had to convince Democrats to support it and noted that Mills did not support the bill with her signature.
“That is one small but important way we can help Maine seniors remain in their homes,” he said.
Not all conservatives are behind it. The news arm of the conservative Maine Policy Institute published a dim review last month, saying it could add “a potentially unmanageable expense to the state’s budget” because roughly one-sixth of the state’s population could apply. Libertarian-leaning David Boyer, a Republican running for a House seat centered on Poland, cited “qualms” as he was publicizing sign-up information for those in his area.
The low-key passage and a program design that is concerning to many could explain why the property tax freeze is not getting the political credit-taking that we might otherwise expect. But everyone has an incentive to help seniors sign up for a program that could help them a lot someday.