HOULTON, Maine — Homeowners and renters who have received “Circuitbreaker” rebates from the state in past years may be surprised to learn the program has changed.
The Maine Residents Property Tax and Rent Refund program was repealed in Augusta of 2013. In its place is a refundable Property Tax Fairness Credit that can be claimed on a person’s Maine Individual Income Tax Form.
“Before, people used to send their application in the fall directly to the state and would get a refund on either their rent or taxes for the previous year,” explained Laureen Bither, tax assessor for the town of Houlton.
A change made by the Maine Legislature altered the way refunds will be given in 2014. To receive the credit, an individual must now file a 1040 income tax form with the state along with a Property Tax Fairness Credit worksheet, which became available in January.
Those on a very limited income are the ones most likely to qualify for the assistance, Bither said.
“The problem is so many of the elderly are on such a limited income that they don’t have to file a tax return,” Bither said. “Now they will have to file a return to get this credit.”
Because of the change, residents have already lost out on the credit for one year, Bither added.
“Normally, they would have filed this past fall to get a rebate for 2012,” she said. “When they file now in 2014, it will be for the 2013 year. For elderly on tight or fixed incomes, that’s a tough blow.”
Qualified homeowners or renters are eligible for up to a $300 refund, which increases to $400 for those ages 70 and older.
To qualify a resident must prove:
• They were a Maine resident during any part of the tax year.
• Owned or rented a home in Maine during any part of the tax year and lived in that home during the year.
• Had Maine adjusted gross income of not more than $40,000.
• Paid property tax on a home in Maine that was more than 10 percent of their Maine adjusted gross income or paid rent to live in a home or apartment in Maine during the tax year that was more than 40 percent of Maine adjusted gross income.
For example, a person with a gross income of $12,000 and a property tax bill of at least $1,200 or monthly rent of $400 is eligible for the refund.
Forms can be downloaded from the Maine Revenue Services website at www.maine.gov/revenue/forms or by calling 624-7894 to request one to be mailed. They are also available at the Cary Public Library.
