An Act Providing Senior Citizens with an Optional Deferred Payment Plan for the Payment of Property Taxes
Maine Legislature, Session 122, LD 1134
Committee: Taxation
Sponsors: HARLOW, ANDREWS, BARSTOW, BLANCHARD, BRAUTIGAM, CANAVAN, DRISCOLL, FAIRCLOTH, MOULTON, PILON

Legislative Document 
No. 1134 
H.P.777 
House of Representatives, March 8,2005 
An Act Providing Senior Citizens with an Optional Deferred 
Payment Plan for the Payment of Property Taxes 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative HARLOW of Portland. 
Cosponsored by Senator ANDREWS of York and 
17/~ 
/J7.1i!~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: BARSTOW of Gorham, BLANCHARD of Old Town, BRAUTIGAM of 
Falmouth, CANAVAN of Waterville, DRISCOLL of Westbrook, FAIRCLOTH of Bangor, 
MOULTON of York, PILON of Saco. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRSA c. 105, sub-c. 11 is enacted to read: 
SUBCHAPTER 11 
ELDERLY RESIDENTS PROPERTY TAX DEFERMENT 
Slili. 
Municipal property tax deferment program 
Each 
municipality 
that 
levies 
taxes 
on 
real 
property 
pursuant to this chapter may implement a program that provides 
for deferred payment of property taxes, 
referred to in this 
subchapter as "the program." 
1. 
Eligibility. 
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 
in 
accordance 
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. 
Repayment of property 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 2 must be paid within 30 
days of the sale or transfer of the property or withdrawal from 
the program by the person selling or transferring the property or 
withdrawing 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; 
B. 
The actual amount of property taxes assessed and the 
amount actually paid each year during participation in the 
program; 
C. 
The current assessment; and 
D. 
The amount of the additional assessment, if any, imposed 
for administrative costs. 
4. 
Additio~~~~essment; escrow account. 
As part of the 
program, the municipality may, by a majority vote of its voters 
and in the same m~ner by which taxes are set pursuant to sectipn 
505, impose an additional assessment on the residential property 
in that municipality. 
The additional assessment may not exceed 
2% 
of the total taxes deferred under this section. 
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 to offset 
the costs of administering the program. 
SUMMARY 
This bill allows 
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 in 
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 in the program. 
At that 
time, all property taxes assessed on the property but deferred 
because of participation in 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 of up to 
2% of the taxes deferred upon residential property. 
The revenue 
from the additional assessment must be kept in a dedicated escrow 
account 
and used solely for 
the administrative costs of the 
program.