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

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

disabled

Beginning with the property tax year that starts April 1, 2002, the property of a qualifying resident must be taxed at just value as provided in this section.

1.__Definitions.__As used in this section, unless the context otherwise indicates, the following terms have the following meanings.

A.__"Homestead" has the same meaning as in section 6250, subsection 3.

B.__"Just value" has the same meaning as in section 701-A.

C.__"Permanent resident" has the same meaning as in section 681, subsection 4.

D.__"Qualifying resident" means a permanent resident having legal or beneficial title to real property in this State who is liable for property taxes and who meets the following criteria:

(1) The person has gross income of no more than $25,000 if filing as an individual or $32,500 if filing jointly;

(2) The person occupies as a home and has occupied for the previous 12 months the real property for which the person seeks relief; and

(3) The person meets the requirements of division (a) or (b):

(a)__The person is 65 years of age or older and has been a resident of this State for the preceding 60 months and any adults, other than that person's spouse, domiciled with that person are 65 years of age or older; or

(b) The person is disabled for purposes of collecting benefits under the federal Social Security Act.

2.__Determination of just value.__The homestead of a qualifying resident must be assessed at the just value as