Homestead Exemption

To qualify for a homestead exemption you must be a legal resident of the State of Maine and owned a homestead property for at least the past 12 months in the State of Maine. The homestead must be your permanent place of residence. Completed forms must be filed in my office by April 1. Once you have qualified for a Homestead Exemption you do not have to reapply each year unless you change properties. The Homestead Exemption provides a property exemption of up to $20,000 in valuation.

Homestead Exemption Form

Veteran Exemption:

To qualify for a Veteran Exemption you must have reached the age of 62 by April 1, discharged other than dishonorable, be a legal resident of the State of Maine and served in the armed forces of the United States during any federally recognized war or campaign period. There are also Veteran Exemptions for Paraplegic Veteran, Veterans Widows, Veterans Minor Children and Mothers of Veterans. Please call the Town Office if you have any questions. Completed forms

Veteran Exemption Form

To help lower-income seniors avoid higher property taxes and remain in their homes, two existing State programs are being expanded:

• The Property Tax Fairness Credit, which currently allows eligible Mainers to take a $1,500 credit, has increased to $2,000; it also loosens limits on the program in a way that allows the benefits to remain constant for a Mainer whose spouse passes away. Note: This program is not administered by the Town of Damariscotta; to claim the credit, you must file Form 1040ME and Schedule PTFC/STFC for the tax year during which the property tax or rent was paid. For help, call 207-624-9784. For more info, please visit: Property Tax Fairness Credit Summary.                          

• The State Property Tax Deferral Program, a lifeline loan program that covers the annual property tax bills of Maine seniors age 65 and older who cannot afford to pay them on their own, has been expanded. It doubles the income limit on that program to $80,000 and also raises asset limits. Taxes must be paid back when the home is sold or becomes part of an estate. Note: This program is administered by the State of Maine and the applications must be filed between January 1 and April 1 each year.  Applications are forwarded to Maine Revenue Services who review and make the determination for acceptance and approval. Questions can be referred to Maine Revenue Services, Property Tax Division, at 207-624-5600 or [email protected]. For more info, please visit: State Property Tax Deferral Program.