Governor Weekly Message: Our Plan Helps Senior Citizens Stay in Their Homes

We all know senior citizens who worked hard their whole lives, but now find themselves facing financial uncertainty. My tax reform plan helps them stay in their homes.

Hello, this is Governor Paul LePage.

This cold winter reminds us of the less fortunate who are struggling to heat their homes and pay their bills. Maine senior citizens are among them.

Our tax reform plan protects seniors from local property tax increases. Giving state aid to local government has not resulted in lower taxes for Mainers.

Property tax relief programs should focus on individual homeowners instead of municipalities. That’s why our plan gives relief directly to the taxpayer.

Our plan doubles the homestead exemption for seniors. The first $20,000 of their home’s value will be exempt from property tax.

Our plan also increases the property tax fairness credit from $900 to $1,500 for those over 65. This is
direct property tax relief to seniors and other Mainers on fixed incomes.

Senior citizens should not be forced to leave their homes because local officials failed to reduce their property taxes.

Our plan also makes Maine a more attractive home for young retirees to launch a second career and for seniors to retire in comfort.

The plan cuts the tax burden by $300 million for Mainers, reduces taxes on all pensions and eliminates taxes on military pensions.

Our plan also eliminates Maine’s estate tax and creates a sales tax fairness credit to offset any increase in sales taxes.

Under this plan, our Maine seniors will see more money in their checking accounts. It will also keep wealthier Maine seniors in our state. Too many seniors change their legal residence to other states because of Maine’s high taxes. To make it more affordable for them to stay here after retirement, we will exempt pension income up to $35,000 from state income tax.

Our plan also exempts military pensions from state income tax. Maine will join 22 other states that honor veterans by not taxing their pensions. This will encourage retired veterans of all ages to reside in Maine, as well as those launching second careers.

Our plan also protects family businesses and farms by eliminating the “death tax.” Seniors will no longer have to move to other states, and small businesses can keep employing Mainers now and for generations to come.

Our tax reforms are designed to help Mainers age in their homes with dignity. They worked hard all of their lives for their homes. They deserve to keep them.