Sec. 1. 36 MRSA §662 is enacted to read:

§662.__Tax relief for citizens 65 years of age or older

Beginning with the property tax year that starts April 1, 2002, any person having legal or beneficial title to real property in this State and who is liable for property taxes is entitled to property tax relief for that portion of the property for which relief is sought consisting of the homestead, as defined in section 6250, subsection 3, but including all contiguous acreage if the person:

1.__Permanent resident.__Is a permanent resident of this State;

2.__At least 65 years of age.__Is 65 years of age or older and any adults other than that person's spouse domiciled with that person are 65 years of age or older;

3.__Occupies home.__Occupies as a home the real property for which the person seeks relief; and

4.__Income restriction.__Has income equal to or less than 200% of the federal poverty level.

A person meeting the qualifications set out in this section may file a claim for property tax relief with the tax assessor of the municipality in which the property is located and, upon approval, shall pay the tax levied on that property for the first year a claim for relief is filed and, as long as the person continues to meet the qualifications, may continue to pay in each subsequent year the same amount of tax or any lesser amount that may be levied against the real property.

Notwithstanding section 661, the Treasurer of State shall reimburse each municipality 100% of the property tax revenue loss suffered by that municipality during the previous calendar year as a result of the relief granted pursuant to this section.

SUMMARY

This bill stabilizes property taxes on certain homesteads. Once a property owner reaches 65 years of age and has income not more that 200% of the federal poverty level, the property tax rate remains the same on the property occupied by that owner.