An Act To Increase the Property Tax Fairness Credit
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA §5219-KK, sub-§2-A, as enacted by PL 2017, c. 474, Pt. B, §16, is amended to read:
2-A. Credit in 2018. For tax years beginning on or after January 1, in 2018, a resident individual is allowed a credit against the taxes imposed under this Part equal to the amount by which the benefit base for the resident individual exceeds 6% of the resident individual's income. The credit may not exceed $750 for resident individuals under 65 years of age as of the last day of the taxable year or $1,200 for resident individuals 65 years of age and older as of the last day of the taxable year. In the case of married individuals filing a joint return, only one spouse is required to be 65 years of age or older to qualify for the $1,200 credit limitation. Married taxpayers filing separate returns do not qualify for the credit under this section.
Sec. 2. 36 MRSA §5219-KK, sub-§2-B is enacted to read:
2-B. Credit in 2019 and after. For tax years beginning on or after January 1, 2019, a resident individual is allowed a credit against the taxes imposed under this Part equal to the amount by which the benefit base for the resident individual exceeds 5% of the resident individual's income. The credit may not exceed $1,000 for resident individuals under 65 years of age as of the last day of the taxable year or $1,500 for resident individuals 65 years of age and older as of the last day of the taxable year. In the case of married individuals filing a joint return, only one spouse is required to be 65 years of age or older to qualify for the $1,500 credit limitation. Married taxpayers filing separate returns do not qualify for the credit under this section.
summary
This bill increases the maximum credit available under the property tax fairness credit from $750 to $1,000 for resident individuals under 65 years of age and from $1,200 to $1,500 for resident individuals 65 years of age and older and decreases the threshold from 6% to 5% of the resident individual's income for purposes of calculating the credit.