AUGUSTA — A panel of experts is looking to reduce the burden of local property taxes on Maine residents at a time when the state faces a housing shortage and high property values.

The Real Estate Property Tax Relief Task Force met for the first time Friday to lay the groundwork for what’s expected to be 15 months of study and deliberation.

Task Force Chairwoman Sen. Nicole Grohoski (D-Ellsworth) said she hears about high property taxes from those in her district, particularly senior citizens and first-time home buyers.

“It’s important that for anyone on a fixed income, people who are trying to buy homes, young families starting out that we get a handle on this so that they can achieve their goals and live comfortably,” she said. 

The panel, which includes lawmakers and members of the public, is charged with examining how property values are assessed, how existing relief programs are working and who is most impacted. Also, it will compare Maine to other states.

Michael Allen, associate commissioner for tax policy at the Department of Administrative and Financial Services, said prior to the COVID-19 pandemic that began in 2020, high property taxes were mostly a problem for states in the Northeast.

But now, it’s a nationwide problem as residential properties continue to increase in value, but commercial property values decline.

Allen said Maine has tried to pick up more of the cost in recent years, increasing school aid from $1.2 billion in 2018 to $1.8 billion in fiscal year 2026. The state has also increased revenue sharing from $69 million in 2018 to $275 million in 2026. 

He also outlined several programs already in place to help reduce the tax burden, including the homestead exemption and tax reductions for veterans, those who are blind and renewable energy equipment. In addition, there’s a Property Tax Fairness Credit that offers a break on income taxes for eligible Mainers.

“There’s a lot of resources from state government going back to municipalities now,” he said.

Added together, the exemptions and tax credits were about $140 million in 2018, an amount that will climb to $315 million in 2026.

Compared to other states, Maine ranks eighth in property tax burden per capita, according to the Tax Foundation. When calculated on a different day, Maine ranks 20th in property taxes paid as a percentage of owner-occupied housing value, also according to the Tax Foundation. 

One other data point unique to Maine is that 14.4% of total housing units are used seasonally or recreationally. That’s the highest percentage in the country, according to the Maine State Economist Office.

Grohoski said despite what the state is already doing, she’s hopeful there’s more that can be done.

“There’s a question too of the programs that we have are they actually getting to the people that need them that are even eligible for them?” she said. “That’s one of the questions I’m hoping we can answer.”

The group is required to issue an interim report in January and a final report in December 2026.