New Homestead Act

[Artisanediting]

Thanks for the response--so, does the entire state of Maine qualify when purchasing under the New Homestead Act? I was under the impression it only was relevant in places that had experienced a drastic decrease in population, as the intent is to revitalize the depressed area--but it the Act may take different forms in different locales. I'm still a little unclear. Even when I read the jargon regarding the Act online, I'm not sure I understand it fully. I'm looking to settle in a small community--one not overrun by tourists in the summer time (hopefully). Some of these things I will find out on my own, I'm sure, as I look around the area, but I do appreciate the advice this forum provides.

[maureenb]

Originally Posted by Artisanediting

Thanks for the response--so, does the entire state of Maine qualify when purchasing under the New Homestead Act? I was under the impression it only was relevant in places that had experienced a drastic decrease in population, as the intent is to revitalize the depressed area--but it the Act may take different forms in different locales.

I don't believe population density has anything to do with the Homestead Exemption.

I lived in Rockland (pop. give or take 7,500) for a few years, and whence I qualified, I filed for and received the Homestead Exemption.

Now I live in Owls Head. As far as I know, we haven't experienced a drastic decrease in population. The Homestead Exemption Act is alive and well here. According to the OH Town Report for 2008-9, $3,219,763.00 in property taxes/liens were collected; the Homestead Reimbursement paid out was $29,089.00. OH has a few summer folk who cannot claim residency here.

I have a copy of the app. in front of me. "Paperwork" isn't my strong suit, and I do not find the Homestead Exemption complicated For me, the only thing complicated about the Homestead Exemption is remembering to file by April 1st!

[Zarathu]

I don't think that there has been any drastic increase in population in MDI, after all there is really limited places for the population to go. BUT I can still get the homestead provision there after I move.

You do have to own the property(or share it with the bank, I currently own more than the bank does). You cannot get it for renting.

[retiredtinbender]

It is under the Maine Revised Statutes Annotated (MRSA) Title 36. Hence, it's a State-wide, exemption. Very simple form with only 3 questions to answer: are you a legal resident of Miane, have you owned a homestead property for 12 months as of April 1st, and do you claim it as your residence. Answer 'no' to any of those and you do not qualify. It doesn't matter if you or the bank or anyone, own the largest share. If you move somewhere else there is a way for it to move with you. My only irritation with it is the muni. picks up half the cost in reimbursement. How does the town get it? Taxes. When he state doubled the value they said they would only reimburse the first half. A nice unfunded mandate which made them look good on paper. As usual.

[Zarathu]

The best government is no government? Or better yet no government, but having government services all the same, I suppose.

[retiredtinbender]

Originally Posted by Zarathu

The best government is no government? Or better yet no government, but having government services all the same, I suppose.

I'm gonna try y best to keep this in line with the oP. We need government, I think it is silly to say otherwise. But we need them to fix things that are larger than the individual instead of throwing on a new bandaid over an old bandaid as they seem to do. Homestead exemption started out (in Maine) as Gov. Kings answer to high property taxes. What better way to let the Leg. keep spending money and look as though it was offering a solution than to set up a (then) $7,000 offset on homesteads. Tree growth, Farm and open space were to help property owners save on taxes and not have to subdivide and sell their property.

The Leg (Fed & State) are needed but they need to think beyond their noses. Homestead was a good idea for helping but curbing spending is a better idea. There are times you can afford all the services and a time when you have to cut back on them. The same as in a household and that budget.