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Legislative Council Approves Senator Bartlett’s Tax Reform Bill
November 13, 2007
State Senator Phil Bartlett is pleased to announce that the Legislative Council approved his proposal for property tax reform among the bills that will be heard next year. Because next year is the “short session,” all bills must be approved by the Council. Of 566 bills submitted, only 148 received the nod.
LR 2903 will create a refundable income tax credit based on the amount of residential property taxes paid by each Mainer. This credit will be taken against a property owner’s income tax, and if the amount of the credit is greater than the income tax owed, the taxpayer will be sent a refund.
As proposed, the legislation would provide a credit of 25 percent of each Maine resident’s property tax bill. The amount of the credit would be capped at $500.
“By incorporating property tax relief into the income tax form, we can ensure that residential property taxpayers get direct relief without having to complete any additional forms or applications,” Senator Bartlett explained. “By making the tax credit refundable, even individuals who may not have substantial taxable income can still claim the credit and receive a refund.”
“The failure to enact meaningful property tax relief was a major shortcoming in our work last session,” continued Senator Bartlett. “I’m glad the council wants to pursue property tax reform, and I am especially gratified that they chose my bill as a potential basis for that reform.”