An Act To Provide Property Tax Relief to Maine Citizens Who Meet Certain Guidelines
Maine Legislature, Session 121, LD 1208
Committee: Taxation
Sponsors: ANDREWS, Mll, LEMONT, COLLINS, DUDLEY, EDER, GLYNN, LEWIN, DAVIS, MA YO

Legislative Document 
No. 1208 
H.P.882 
House of Representatives, March 6, 2003 
An Act To Provide Property Tax Relief to Maine Citizens Who Meet 
Certain Guidelines 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative ANDREWS of York. 
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/J1·7714£~ 
Mll..LICENT M. MacFARLAND 
Clerk 
Cosponsored by Representative Mll..LETT of Waterford, Senator LEMONT of York and 
Representatives: COLLINS of Wells, DAVIS of Falmouth, DUDLEY of Portland, EDER of 
Portland, GLYNN of South Portland, LEWIN of Eliot, Senators: DAVIS of Piscataquis, 
MA YO of Sagadahoc. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRSA c.l05, sub-c. 11 is enacted to read: 
SUBCHAPTER 11 
ELDERLY RESIDENTS PROPERTY TAX DEFERMENT 
Sllll. Municipal propert~ tax deferment program 
Each 
municipality 
that 
levies 
taxes 
on 
real 
property 
pursuant to this chapter shall implement a program that provides 
for deferred payment of property taxes, 
referred to in this 
subchapter as "the program." 
1. 
E1igibilit~. 
A person may participate in the program if 
the person: 
A. 
Is a resident of the taxing municipality; 
B. 
Pays property taxes to that municipality; 
C. 
Is at least 65 years of age; and 
D. 
Has an annual income less than or egual to 300% of the 
nonfarm 
income official poverty line, 
as defined by the 
federal Office of Management and Budget and revised annually 
with the United States Omnibus Budget Reconciliation Act of 
1981, Section 673. 
2. 
Deferment of property taxes. 
A person who is eligible 
to participate in the program may elect to pay property taxes at 
a level egual to those property taxes assessed on that person's 
residence at the time the person attained 65 years of age. 
The 
assessment must remain at that level until the home is sold or 
transferred or the person chooses to stop participating in the 
program. 
3. 
Repcnrment of prQpert~ taxes. 
When the residence of a 
person participating in the program is sold or transferred or the 
person chooses to discontinue participating in the program, the 
total taxes deferred under subsection must be repaid within 30 
days of the sale, transfer or withdrawal from the program. 
The 
person selling or transferring the property or withdrawing from 
the program shall notify the assessor for the taxing municipality 
at least 30 days prior to the sale, transfer or withdrawal. 
The 
assessor shall prepare a statement for the person showing: 
A. 
The total amount of property taxes deferred for that 
person on that residence due to participation in the program; 
Page l-LR024l(1) 
B. 
The actual amount of property taxes assessed and the 
amount actually paid each year during participation in the 
program; and 
C. 
The current assessment. 
4. 
Additional assessment; escroW' account. 
As part of the 
program, the municipality may, by a majority vote of its voters 
and in the Same manner by which taxes are set pursuant to section 
505, impose an additional assessment on the residential property 
in that municipality. 
If the additional assessment is approved, 
the revenue from the additional assessment must be deposited in a 
dedicated escrow account maintained by that municipality and used 
solely for 
the 
purpose of offsetting the 
temporary loss of 
revenue incurred because of participation in the program. 
SUMMARY 
This bill requires a municipality to establish a municipal 
property 
tax 
deferment 
program. 
The 
program 
would 
allow 
a 
resident who is at least 65 years of age and whose annual income 
is not more than 300% of the poverty level to pay property taxes 
on that person's residential property at the rate that was ln 
effect on that person's 65th birthday. 
The assessment remains at 
that level until the residence is sold or transferred or the 
person elects to stop participating ln the program. 
At that 
time, all property taxes assessed on the property but deferred 
because of participation ln the program must be paid to the 
municipality. 
In order to offset the temporary loss of revenue caused by 
persons participating in the program, the municipality may, upon 
approval of its voters, 
impose 
an additional assessment upon 
residential property. 
The revenue from the additional assessment 
must be kept in a dedicated escrow account and used solely for 
the purpose of offsetting the loss of revenue.