Below is a list of personal Tax Exemptions that reduce the amount of annual property tax.  Exemptions are available to town residents and after receiving initial qualification approval the taxpayer does not need to file again within the same town.  Current Land Use programs are open to both resident and non-resident land owners and the qualification process varies by the category of enrolled land classification.

 

           Personal Property Tax Exemption

https://www.maine.gov/revenue/taxes/tax-relief-credits-programs/property-tax-relief-programs/property-tax-exemptions

 

            Homestead Exemption is controlled by the State Legislature and has been frequently revised since inception. Currently tax-exemption is $25,000 and the State reimburses towns for 50% of lost tax revenue. To qualify for Homestead Exemption this must be your primary residence and you must have owned real estate in Maine for a minimum of twelve months prior to April 1st.  If you have moved here after owning another Maine residence you will qualify to continue receiving the Exemption after proving residency and applying no later than April 1st. 

 

            Veteran and Survivor of Veteran Exemption is controlled by the State Legislature and the town is not reimbursed for lost revenue. Veteran and Survivor Exemptions acknowledge the sacrifice made by men and women serving in the various branches of our Armed Forces. To qualify for this exemption Phippsburg must be your primary residence, though the Veteran may or may not have been a Maine resident at time of induction.  The eligible Veteran must have reached the age of 62 years and must own the property solely; jointly only with a spouse, or in a revocable living trust. The exemption is linked to service during periods of armed conflict (i.e. WW II, Korea, Vietnam for a minimum of 180 days and Persian Gulf). In some cases, Merchant Marines serving between 1941 and 1945 may qualify. Veterans receiving federal compensation for 100% service-related disability may qualify before age 62 or may qualify for service periods outside the campaigns listed above.  Paraplegic exemption is $50,000 and all others are currently $6,000.  DD-214, or equivalent required with application and filing must occur by April 1^st.

 

            Persons Legally Blind Exemption is controlled by the State Legislature and the town is not reimbursed for lost revenue. Determination of status as legally blind is by the Department of Education, Division of the Blind and Visually Impaired as confirmed by applicant’s Optometrist. To qualify the home must be the primary residence and the exemption amount is $4,000 with the filing deadline of April 1^st.

 

            Renewable Energy Equipment Exemption is controlled by the State Legislature and is being implemented for TY-20.  The application requires significant technical information that is extractable from system installation paperwork or contract documentation and must be included by the home owner filing to meet the April 1^st deadline. All power generated by the equipment must be used on site and / or subject to a utility bill credit of a transmission and distribution facility.  State reimburses towns for 50% of lost tax revenue.

 

CURRENT LAND USE ENROLLMENT PROGRAMS

 

            Tree Growth Classification requires a minimum of ten acres capable of producing harvestable timber.  The State Legislature regulates the program and the town is partially reimbursed for lost revenue. The real estate parcel may include structures on unenrolled acreage above the minimum 10 acres enrolled.  A Forest Management Plan is drawn by a licensed Professional Forester.  The Management Plan must be updated at least every ten years. The Forester’s plan classifies the timber by stand type and the assessed value per timber acre is determined annually by the State. Tax penalty is invoked when land is removed from program.

 

            Open Space Classification does not require a minimum acreage size but the applicant must demonstrate public benefit to qualify for enrollment. The State Legislature regulates the program and the town is not reimbursed for lost revenue. The land may include a dwelling on acreage outside the land accepted and enrolled as dedicated to the public benefit. Land may or may not be restricted by written wildlife management agreements between land owner and state, and may or may not be encumbered by deeded conservation easements held by third parties. Land value adjustment varies linked to demonstrated public benefit level running with the title. Future updates are not mandated but may be requested. A tax penalty is invoked when land no longer meets criteria claimed or is removed from Open Space enrollment.

 

            Farm Land Classification requires a minimum of five contiguous acres not including residential buildings. Income requirements apply and an income report must be submitted to town assessing records. Land value is reduced to reflect farm use rather than Highest and Best Use value.  If the land ceases to qualify as income producing farmland or is removed from the program, a supplemental tax penalty is invoked.

 

            Working Waterfront Classification does not require a minimum acreage size but at time of application for program inclusion, the applicant must demonstrate that the land is used to support commercial saltwater fishing. The land value is reduced to reflect usage ranging from primarily (50% or greater) to predominantly (90% or greater). Structures may exist but are not eligible for value reduction (for clarity, docks and piers are structures and are not eligible). If the land ceases to be used to support commercial fishing, including change of use forced by owner’s disability or retirement the land will be removed from the program and invoke a tax penalty.

 

QUESTIONS

 

                If you have questions regarding any of the personal Property Tax Exemptions or Current Land Use classifications please contact the Assessors’ Agent.  Simple questions can be answered by telephone while detailed discussions relevant to Current Use programs may require an appointment to meet on site at the town hall or to discuss by telephone if meeting in person is impractical.  And, links to the Maine Revenue Services Tax Bulletins and Application forms are available by visiting http://www.maine.gov/revenue/forms/property/appsformspubs.htm.