Last year, by a large partisan vote, the Legislature passed LD
1. Its goal: to increase state aid to education, limit government spending and
reduce property taxes. Two independent economists recently reflected that
|Governor John Baldacci|
Here’s what they found: LD 1 is working. This year:
* Maine governments reduced spending growth.
* State aid for education contributed to municipal spending reductions.
* Maine homeowners saved an estimated $65 million, and Maine businesses saved
$10 million, in property taxes.
* Maine homeowners at all income levels saved money.
If your property tax bill hasn’t gone down, ask:
How did your community use its share of the additional $99 million in
2006 state school aid?
Not every school replaced property tax dollars with state dollars. LD 1 left
this decision to towns and cities.
Did your property tax bill grow by less than 5%?
Five percent is the average increase in recent years. For 2005, average
property taxes grew by only 1.7%--just half the rate of inflation. That means
less money than expected out of the pockets of property taxpayers.
Is your property tax bill more than 4% of your income? You may qualify for a
refund: 225,000 Maine homeowners, renters, and seniors are eligible for property
tax rebates up to $2000. Apply for a Tax and Rent Refund through your town
office or Maine Revenue Services (626-8475 or www.maine.gov/revenue).
For 2007, the State will contribute another $79 million to education. Given
our first year’s experience this should translate into further property tax
relief for Maine residents. LD 1 is working.