An Act Providing Senior Citizens with an Optional Deferred Payment Plan for the Payment of Property Taxes
Maine Legislature, Session 123, LD 1433
Committee: Taxation
Sponsors: HARLOW, WEAVER, SNOWE-MELLO, BEAULIEU, COTTA, GIFFORD, HAYES, JOY, MILLETT, MIRAMANT, SCHATZ

Legislative Document 
No. 1433 
H.P.I007 
House of Representatives, March 15,2007 
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. 
!rJ~frJ.~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representative WEAVER of York, Senator SNOWE-MELLO of 
Androscoggin and Representatives: BEAULIEU of Auburn, COTTA of China, GIFFORD of 
Lincoln, HAYES of Buckfield, JOY of Crystal, MILLETT of Waterford, MIRAMANT of 
Camden, SCHATZ of Blue Hill. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRS A c. 901-A is enacted to read: 
CHAPTER 901-A 
ELDERL Y RESIDENTS PROPERTY TAX DEFERMENT 
§6131. Short title 
This chapter may be known and cited as "the Elderly Residents Property Tax 
Deferment Program. " 
§6132. Municipal property tax deferment program 
Each municipality that levies taxes on real property pursuant to chapter 105 may 
implement a program that provides for deferred payment of property taxes, referred to in 
this chapter as "the program." 
1. Elieibility. A person may participate in the program if the person: 
A. Owns and occupies a homestead in the taxing municipality. As used in this 
paragraph, "homestead" has the same meaning as in section 681, subsection 2; 
B. Pays property taxes to that municipality; 
C. Is at least 65 years of age. If the property is owned by more than one person, the 
age eligibility requirement is met as long as the participant is at least 65 years of age; 
and 
D. Has an annual income less than or equal 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 equal to those property taxes assessed 
on that person's residence at the time the person attained 65 years of age, the time of 
purchase of the residence or April 1, 2007, whichever occurs later. 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. Decrease in assessed value. Notwithstanding subsection 2, the assessment of 
eligible property under this chapter may be decreased to reflect the diminution of the 
value due to revaluation, destruction or subtraction. 
4. Repayment of property taxes; interest. When the owner of property enrolled in 
this program no longer meets the eligibility requirements in subsection 1 or the property 
is sold or transferred or withdrawn from the program, the total taxes deferred under 
subsection 2 must be paid not later than 30 days after the sale, transfer or withdrawal. If 
Page I - 123LR0438(Ol)-1 
I 
the ineligibility is the result of the death of the owner, the deferred property taxes must be 
paid no later than 30 days following the sale or transfer of the property. The person 
selling or transferring the property or withdrawing the property from the program is 
responsible for payment of the deferred property taxes. The person selling or transferring 
the property or withdrawing the property from the program shall notify the municipal tax 
collector for die taxing municipality at least 30 days prior to the sale, transfer or 
withdrawal. A person who no longer meets the eligibility requirements in subsection I, 
except in the case of the death of the owner, shall notify the tax collector within 30 days 
of the ineligibility. 
If the owner dies, the trustee of the estate shall notify the tax 
collector. 
I I 
The tax collector shall prepare a statement for the person notifying the tax collector 
showing: 
A. The total amount of property taxes deferred on that residence due to participation 
in the program; 
IS 
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 
pursuant to subsection 5. 
Deferred property taxes that are not repaid within the time required by this subsection 
accrue interest at the rate of 6% per annum. 
5. 
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 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. 
§6133. Relationship to state programs 
The benefits received under this chapter are not intended to reduce or disqualify a 
person from receiving a benefit under any state tax relief program, such as the Maine 
resident homestead property tax exemption program under chapter 105, subchapter 4-B or 
the Maine Residents Property Tax Program in chapter 907. 
§6134. Listing of tax-deferred property 
1. Tax-deferred property list. If eligibility for deferral of taxes on homestead 
property is established as provided in this chapter, the municipal assessor shall show on 
the current ad valorem assessment and tax roll which property is tax-deferred property bv 
an entry clearly designating that property as tax-deferred property. 
2. Tax statement. When requested by the bureau, the municipal tax collector shall 
send to the bureau as soon as the taxes are extended upon the roll the tax statement for 
each tax-deferred property. 
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 homestead at the rate that was in effect on that person's 65th birthday, the date 
the person purchased the homestead or April 1, 2007, whichever is later. The assessment 
remains at that level until the residence is sold or transferred, the person elects to stop 
participating or the person is no longer eligible to participate 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. Deferred taxes that are not paid within the 
required time accrue interest. 
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 property in the municipality. The 
revenue from the additional assessment must be kept in a dedicated escrow account and 
used solely for the administrative costs of the program.