'Circuit Breaker' tax and rent refund program applications available Aug. 1

AUGUSTA — Senator Justin Alfond, D-Cumberland County, announced that the 2010-2011 Maine Residents Property Tax and Rent Refund Program, also known as the "Circuit Breaker" program, will be accepting applications again beginning Aug. 1.

Over 200,000 Maine homeowners and renters are estimated to be eligible for a refund check from the State of Maine under the Circuit Breaker program. During the last application period 88,470 refunds totaling almost $40.5 million were distributed to Maine homeowners and renters. Refund checks to homeowners and renters statewide averaged $456.

“I can’t stress enough the importance of this program,” Senator Alfond said. “It has been helping many Maine seniors and lower-income families for a number of years. The Legislature worked hard to expand the Circuit Breaker program so that a wider range of Mainers can qualify. Now, many more middle-income people and families are eligible.”

Last year, 6,278 individuals and families from Portland qualified for a refund under the Circuit Breaker program. The total refund amount received was $3,352,680, which averages about $534 per person.

“It’s clear that the circuit breaker program has had a considerable impact in reducing the property tax burden here in Portland,” Alfond said. “Mainers are still struggling, and every dollar counts. This program is effective and can help. I encourage those eligible to apply."

An applicant must be a Maine resident, and they must have lived in Maine for all of 2009. If the applicant is married or has a dependent, then the 2009 household income must have been $86,600 or less. If the applicant is a single homeowner, the household income must be $64,950 or less. The other major requirement is that the 2009 property taxes must have been more than four percent of the 2009 household income. If the applicant is a renter, then they may qualify if the rent paid in 2009 was more than 20 percent of the 2009 household income. The maximum refund to eligible homeowners or renters this year is $1,600.

Senior claimants age 62 and over (55 if disabled) do not need to meet this requirement if their household income is below $14,700 for those living alone or below $18,200 for those living with a spouse or dependent.

The Circuit Breaker program runs over a 10-month period from August 2010 through May 31, 2011. To apply for the Circuit Breaker program online or to download an application, visit the Maine Revenue Services Web site at www.maine.gov/revenue/taxrelief or call 624-7894 to request an application.