Maine residents aged 65 and older could see significant relief in their property tax bills if Senate Bill 1304 passes. Introduced on March 25, 2025, this proposed constitutional amendment aims to cap property taxes for qualifying permanent residents at 2% annually, providing a financial cushion for seniors who have lived in their homes for at least 12 months.

The bill addresses the growing concern over rising property taxes that disproportionately affect older homeowners on fixed incomes. By limiting tax increases, the legislation seeks to enhance housing stability for seniors, allowing them to remain in their homes without the fear of escalating costs.

Key provisions of the bill include a stipulation that upon the transfer of property to someone other than a family member, the property will be assessed at its current market value. This ensures that while seniors benefit from the tax cap, future owners will not be unduly burdened by outdated valuations.

To mitigate the financial impact on municipalities from the reduced tax revenue, the state will reimburse local governments using funds generated from a 2% tax on lottery ticket sales and sports betting. This funding mechanism aims to balance the interests of both seniors and local governments, although it has sparked some debate among lawmakers regarding the sustainability of relying on gambling revenues.

Supporters of the bill argue that it is a necessary step to protect vulnerable populations, while opponents raise concerns about the potential long-term implications for municipal budgets and the fairness of tax distribution among residents.

As the bill moves through the legislative process, its outcome could have lasting implications for Maine's senior population and the state's approach to property taxation. If passed, it may set a precedent for similar measures in other states, reflecting a growing recognition of the need for policies that support aging homeowners.