Code of Maine Rules
18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES
125 - BUREAU OF REVENUE SERVICES
Chapter 813 - PROPERTY TAX FAIRNESS CREDIT
Section 125-813-.01 - TAXPAYER

Universal Citation: 18 ME Code Rules ยง 125-813-.01

Current through 2024-38, September 18, 2024

A. Generally. A Maine resident individual is allowed a property tax fairness credit computed in accordance with 36 M.R.S. §5219- KK and this rule. The credit is based on property taxes paid, or rent constituting property taxes paid, by the resident individual, including, for tax years beginning on or after January 1, 2022, property tax paid on the taxpayer's behalf by the State to a municipality under the Property Tax Deferral Program pursuant to 36 M.R.S. §§6250-6266, during the tax year on the individual's homestead in Maine. The credit allowed is refundable.

B. Unmarried individuals sharing a homestead. Unmarried individuals who shared a homestead in Maine during the tax year and are claiming the property tax fairness credit must each claim the property tax fairness credit based on their individual income and their respective share of the property taxes paid or rent constituting property taxes paid for the right to occupy the homestead.

C. Married individuals filing joint return. Married individuals filing a joint income tax return and claiming the property tax fairness credit must do so based on their joint income and on the property taxes paid or rent constituting property taxes paid during the tax year on their homestead in Maine.

Individuals who married during the tax year may claim on the joint Maine income tax return property taxes paid or rent constituting property taxes paid on the homestead owned or rented in Maine by each prior to marriage.

D. Married individuals filing separate returns

(1) For tax years beginning prior to January 1, 2017, married individuals filing separate returns must each claim the property tax fairness credit based on their separate amounts of income and property taxes paid or rent constituting property taxes paid during the tax year on their homestead in Maine.

If each spouse filing a separate return is entitled to claim property taxes paid or rent constituting property taxes paid on the same homestead, the credit that each spouse may claim cannot exceed 50% of the credit amount for married individuals filing a joint return.

(2) For tax years beginning on or after January 1, 2017, married individuals filing separate returns do not qualify for the property tax fairness credit.

E. Veterans who are permanently and totally disabled. For tax years beginning on or after January 1, 2023, a resident individual who is a veteran and 100% permanently and totally disabled is allowed an additional income tax credit equal to the amount of the property tax fairness credit calculated for the individual under 36 M.R.S. §5219- KK(2-D). The total of the additional credit and the property tax fairness credit calculated under 36 M.R.S. §5219- KK(2-D) may not exceed the property taxes paid and rent constituting property taxes paid during the tax year. For more information, see 36 M.R.S. §5219- KK(2-E).

For married taxpayers filing a joint return, only one spouse is required to be a veteran who is 100% permanently and totally disabled to qualify for the additional credit.

"100% permanently and totally disabled" means having a rating by the United States Department of Veterans Affairs of 100% for one or more service-connected disabilities that are rated permanent.

"Veteran" has the same meaning as 36 M.R.S. §653(1)(E).

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