Following a public hearing in which no comments were made, the Town Council voted unanimously to approve the recommendation from the Ordinance Committee to amend Chapter 27 of the Property Tax Assistance Ordinance for senior tax relief. The amendments raise the income limit to $70,000 and introduce a system of tiered benefits with maximum benefits increasing from$500 to $750-$1,500 based on income.  Unlike the previous pro-rata share model, where relief was proportional to the applicant's tax burden, the new plan offers fixed benefits based on income tiers.  This simplifies the process and provides a more predictable relief for participants, ensuring a sense of security. 

To qualify for assistance: 

• Applicant must be 65 years of age or more.
• Applicants must be a resident of Cape Elizabeth with a Homestead for more than 10 years.
• Applicants must have a Homestead Exemption.
• Applicants must own the property at the time the relief check is issued.
• Applicant's taxes exceed the Adjusted Gross Income by more than 5%.

In a separate vote, the council unanimously approved additional funding in FY 2025 of $192,000 from the Unassigned Fund Balance. The estimated cost of the expanded program is $300,000, up from the original budget of $107,000.

The Ordinance Committee also considered the potential of implementing a state-authorized volunteer program allowing residents aged 60 and older to donate their time in exchange for tax relief.  However, the Ordinance Committee recognized the administrative challenges this might pose and will instead survey other towns to see how they manage similar programs.

Councilor Penny Jordan raised the possibility of expanding the program further in the future by removing or lowering the minimum age requirement as state law permits municipalities to opt not to restrict benefits based on a minimum age of 62 years and above. This suggestion will be reviewed with the town's legal counsel and state-level legislative changes may also be explored.

The amendments to Chapter 27 Property Tax Assistance will go into effect on October 9, 2024.  The first tax bill is due October 15, 2024.

For more information on Senior Tax Relief Programs and/or to apply to Cape Elizabeth's Senior Tax Relief Program, please visit the Senior Tax Relief Programs page found on the Assessing Department website.