An Act Concerning Tax-acquired Property
Maine Legislature, Session 121, LD 0251
Committee: Taxation
Sponsors: GLYNN
Amends: 36 MRSA §943-A, 36 MRSA §945-A

Legislative Document 
No. 251 
H.P.206 
House of Representatives, January 23, 2003 
An Act Concerning Tax-acquired Property 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative GLYNN of South Portland. 
Printed on re<:ycled paper 
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MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRSA §943-A, as enacted by PL 1985, c. 364, §2, is 
repealed and the following enacted in its place: 
§943-A. 
Notice of right to apply for abatement or payment plan 
1. 
Notice of right to apply. 
Each notice under section 942 
or 1281 that is sent by a municipality or the State Tax Assessor 
to a person against whom taxes have been assessed must contain: 
A. 
A statement that the person may apply for an abatement 
of taxes or the establishment of a 
payment plan if the 
person can not pay the taxes that have been assessed because 
of poverty or infirmity; 
B. 
A statement identifying property tax assistance programs 
for which the person may be eligible; and 
C. 
A statement of 
the availability of 
a 
payment plan 
developed by the taxing authority under subsection 2 and a 
statement that as long as the person is making a good faith 
effort to pay the delinquent taxes through a payment plan, 
the taxing authority will work with the person to prevent 
foreclosure. 
2. 
Payment 
plan. 
Each 
municipality 
shall 
develop 
a 
procedure for establishing with a person against whom taxes are 
assessed and who is unable to pay those taxes a payment plan for 
delinquent taxes based upon ability to pay. 
If a payment plan is 
set 
administratively, 
a 
person 
against 
whom 
the 
taxes 
are 
assessed who believes that the plan is unreasonable may appeal to 
the municipal officers. 
The payment plan may include the setoff 
against delinguent taxes of amounts owed by the municipality to 
the person against whom taxes are assessed. 
A payment plan may 
be assumed by a surviving spouse and may be adjusted according to 
the surviving spouse's ability to pay. 
3. 
Notice to heirs. 
If a person against whom taxes have 
been assessed dies while occupying residential property against 
which those taxes have been assessed, the municipality shall make 
reasonable efforts to notify the heirs within 3 months of the 
death of the right to develop a payment plan for repayment of 
delinquent taxes in a period not to exceed 2 years. 
Sec. 2. 36 MRSA §945-A is enacted to read: 
§945-A. 
Recovery after foreclosure 
Page l-LR0982(l) 
1. 
Notice. 
A 
municipality 
that 
acquires 
residential 
property by 
foreclosure 
under this chapter shall notify the 
former 
owner of the right to repurchase the property through 
development with the municipality of a plan for repayment based 
upon the former owner's ability to pay of taxes, interest and 
associated costs incurred by the municipality. 
2. 
Right 
of 
residence. 
If 
the 
former 
owner 
or 
the 
surviving spouse if the former owner dies continues to reside on 
residential property acquired by foreclosure under this chapter 
and is making a 
good faith effort to repurchase the property 
through 
a 
payment 
plan 
arranged with 
the 
municipality, 
the 
municipality may not sell the property to a 3rd party. 
A payment 
plan may be assumed by a surviving spouse and may be adjusted 
according to the surviving spouse's ability to pay. 
The payment 
plan may include the setoff against delinguent taxes of amounts 
owed by the municipality to the former owner. 
If the former 
owner or surviving spouse ceases residing on the property, the 
municipality may sell or otherwise dispose of the property. 
3. 
Right to repurchase. 
At any time before sale of 
a 
property acguired under this chapter by a municipality to a 3rd 
party, the former owner or the former owner's surviving spouse or 
heirs may repurchase the property by payment of all delinguent 
taxes, interest and associated costs incurred by the municipality. 
4. 
Recovery of excess gains on sale. 
If a municipality 
sells property acguired under this chapter to a 3rd party, the 
municipality shall pay to the former owner, the former owner' s 
surviving spouse or the former owner' s heirs all funds received 
from the sale after deducting all taxes owed; interest; costs, 
including costs of sale; and any other charges related to the 
property. 
If the former owner dies and one year after the death 
of the 
former 
owner 
no 
surviving spouse or heirs have 
been 
identified, the municipality may keep all funds received from the 
sale of the property. 
SUMMARY 
This bill is intended to reduce the amount of residential 
property acquired by municipalities for nonpayment of taxes by 
establishing procedures for the development of payment plans both 
before 
and 
after 
residential 
property 
is 
acquired 
by 
a 
municipality if the person who is delinquent in payment of taxes 
or that person's surviving spouse continues to reside on the 
property. 
Municipalities are required to establish procedures 
for payment plans and to notify persons who are delinquent of 
those procedures and the availability of property tax relief 
programs. 
The 
municipality is permitted to set off against 
delinquent taxes amounts owed by the municipality to the person 
who 
is 
delinquent. 
A 
former 
owner 
or 
the 
former 
owner's 
surviving spouse is permitted to buy back the property by payment 
of delinquent taxes, interest and costs at any time before the 
property is sold to a 3rd party. 
A municipality that sells a 
tax-acquired property is required to pay the funds received in 
excess of delinquent taxes, interest and costs to the former 
owner or the former owner's surviving spouse or heirs.