A proposed constitutional amendment, Senate Bill 1304, aims to ease the financial burden of property taxes on Maine residents aged 65 and older. Introduced on March 25, 2025, the bill seeks to cap annual property tax increases at 2% for primary residences owned by permanent residents in this age group, provided they have owned the property for at least 12 months.

The key provision of the bill mandates that if municipalities experience a loss of revenue due to this tax cap, the state will reimburse them at least 90% of the lost funds. This reimbursement is to be funded through a 2% tax on lottery ticket sales and sports betting, creating a direct link between state revenue sources and local tax relief.

Supporters of the bill argue that it addresses the growing concern of housing affordability for seniors, many of whom are on fixed incomes and struggle to keep up with rising property taxes. Advocates believe that this measure will help seniors remain in their homes longer, fostering community stability and preventing displacement.

However, the bill has sparked debates regarding its long-term financial implications for municipalities and the state budget. Critics express concern that relying on lottery and sports betting revenues may not provide a stable funding source, especially if these revenues fluctuate. Additionally, there are worries about the potential impact on younger residents and families who may face higher tax burdens as municipalities adjust to the loss of property tax revenue.

The proposed amendment will be put to a statewide vote in November, allowing residents to weigh in on this significant change to Maine's tax structure. If passed, it could reshape the financial landscape for many older Mainers, potentially influencing their quality of life and housing stability.

As the discussion around Senate Bill 1304 continues, its outcome will be closely watched, with implications that could extend beyond the immediate relief for seniors, affecting the broader community and state economy.