It’s no secret – rising property taxes here in Gorham and in towns across Maine are putting a squeeze on family budgets and making it harder for folks to pay their bills, save for their kids’ education, afford basic necessities or just make ends meet. Last month, Republican legislative leaders in the State House came to Gorham to highlight this important issue, using the opportunity to paint Democrats as being solely responsible for – and not caring about – the recent increases and their impact on working families.
The truth is that these increases stem largely from broader factors and economic trends that are outside the ability of the Legislature to control. Despite this, my colleagues and I remain steadfastly committed to doing everything in our power to ease the burden of property taxes and ensure that they don’t crush family budgets.
The Maine Constitution requires that every town accurately assess the property values within its borders. To do this, towns regularly undertake revaluations. Gorham’s latest revaluation was in 2022, which found that many property values increased significantly as home values have risen in recent years from an increase in demand and lack of supply. As a result, property taxes have gone up.
However, revaluations are important because they ensure that households can receive the full value of state benefits that they are eligible for, such as the Homestead Exemption and different veterans tax benefits. If a town is behind on its revaluation or assesses property at a lower amount than the market value, it results in a reduction in the actual amount that the state can send to households when they apply for these tax credits and benefits. Gorham did a good job of assessing its properties to ensure residents can get the full value of the benefits available from the state.
I know that for lots of folks, absorbing this increase has been shocking and made life more difficult. That’s why I’ve continued to support policies that will help ease the burden on Mainers both directly and indirectly.
In 2022, for the first time in over a decade, Democrats voted to bring state revenue sharing up to 5%, giving more money back to towns and municipalities to help support critical local services while reducing the burden on local property taxpayers. We also continued to meet our obligation to fully fund 55% of public education costs, which means towns can rely less on property tax revenue to support our schools.
More recently, we expanded several relief programs to help directly offset high costs. Last year, we expanded the Property Tax Fairness Credit, which returns a portion of property taxes or rent paid by eligible Mainers each year as a credit on their state tax return. If the credit is more than the taxes you owe for that year, the extra amount will be refunded to you.
We also expanded eligibility for the Property Tax Deferral Program, another tool to support older Mainers living on fixed incomes by helping cover the cost of annual property taxes. Additionally, if you haven’t yet applied for the Homestead Exemption and you are eligible, I encourage you to do so. To learn more about each of these programs, call Maine Revenue Services at 207-624-5600 or visit their website at https://www.maine.gov/revenue/taxes/tax-relief-credits-programs.
I know that the dramatic increase in property values and property taxes has had a significant impact on people in Gorham, and it’s making it harder for folks to stay in this community that we love so much. Democrats in the Legislature have worked to pass measures that will help provide meaningful relief for Maine families, but this work is far from done – and we are committed to continuing to bolster these efforts in the future.
Rep. Maureen “Mo” Terry, D-Gorham, is serving her fourth term in the Maine House of Representatives. She is the House Majority Leader, where she serves as head of the Democratic caucus. Outside of her legislative work, Rep. Terry is a chef and small business owner. Contact her at maureen.terry@legislature.maine.gov.