An Act To Permit Persons 65 Years of Age or Older To Defer Payment of Property Taxes
Maine Legislature, Session 123, LD 2310
Committee: Taxation pursuant to Joint Order, H
Amends: 36 MRSA §6251, 36 MRSA §6253, 36 MRSA §6255, 36 MRSA §6267

Legislative Document 
No. 2310 
H.P.1670 
House of Representatives, April 8, 2008 
An Act To Permit Persons 65 Years of Age or Older To Defer 
Payment of Property Taxes 
Reported by Representative PIOTTI of Unity for the Joint Standing Committee on Taxation 
pursuant to Joint Order, H.P. 1233. 
Prmlt"d Oil recydeJ paper 
'7Jl~ fr}. 71IdC~ 
MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRS A §6251, sub-§l, as repealed and replaced by PL 1993, c. 395, 
§31, is amended to read: 
1. Filing claim. Subject to section 6252, an individual or 2 or more individuals 
jointly may elect to defer the property taxes on their homestead by filing a claim for 
deferral with the municipal assessor after January 1 st but no later than April ! st of the 
first year in which deferral is claimed if: 
A. 
The individual or each individual, in the case of 2 or more individuals filing a 
claim jointly, is 65 years of age or older on April 1 st of the year in which the claim is 
filed~ 
~ 
Do 
The individual or, in the case of 2 or more individuals filing a claim jointly, all 
the individuals together have household income, as defined in section 6201, 
subsection 7, of less than $32,000 for the calendar year immediately preceding the 
calendar year in v,'hich the claim is filed. 
The municipal assessor shall forward each claim filed under this subsection to the bureau 
within 30 days of receipt and the bureau shall determine if the property is eligible for 
I 7 
deferral. 
Claims from new applicants may not be filed pursuant to this chapter prior to January 1, 
1994. For purposes of this section, "new applicants" means any person or persons that 
have not filed claims prior to April 1, 1991. 
Sec. 2. 36 MRSA §6251, sub-§2, as enacted by PL 1989, c. 534, Pt. C, § 1, is 
amended to read: 
2. Property tax deferral. When the taxpayer e~cts If the taxpayer is determined to 
be eligible to defer property taxes for any year by filing a claim for deferral under 
subsection 1, it shall have has the effect of: 
A. 
Deferring the payment of the property taxes levied on the homestead for the 
municipal fiscal tax year beginning on or after April 1 st of that year; 
B. 
Continuing deferral of the payment by the taxpayer of any property taxes 
deferred under this chapter for previous years that have not become delinquent under 
section 6260; and 
C. 
Continuing the deferral of the payment by the taxpayer of any future property 
taxes for as long as the provisions of section 6252 are met. 
Sec. 3. 36 MRSA §6253, as enacted by PL 1989, c. 534, Pt. C, § 1, is amended to 
read: 
§6253. Claim forms; contents 
1. Administration. A taxpayer's taxpayer may file a claim for deferral under this 
chapter shall be in writing on a form supplied by the bureau and sfl.a.l.l must: 
Page I - 123LR3626(OI)-1 
A. 
Describe Identify the homestead; 
B. 
Recite facts establishing the Establish eligibility for the deferral under the 
provisions of this chapter, inoluding facts that establish that the household inoome as 
defined in section 6201, subseotion 7, of the indiyidual, or, in the case of 2 or more 
indiyiduals claiming the deferral jointly, was less than $32,000 for the calendar year 
immediately preceding the calendar year in 'Nhich the claim is filed; and 
C. 
Haye attached Attach any documentary proof information required by the bureau 
to show that the requirements of section 6252 have been met. 
2. Statement verification. There shall be annexed to the The claim must contain a 
statement verified by a written declaration of the appl icant making the claim to the effect 
1 
that the statements contained in the claim are true. 
Sec. 4. 36 MRS A §6254, sub-§l, as repealed and replaced by PL 1989, c. 713, 
§4, is amended to read: 
1. Lien. The lien provided in section 552 must continue continues for purposes of 
protecting the State's deferred tax interest in tax deferred property. When it is determined 
that one of the events set out in section 6259 has occurred and that a property is no longer 
eligible for property tax deferral under this chapter, the State Tax Assessor shall send 
notice by certified mail to the owner, or the owner's heirs or devisees, listing the total 
amount of deferred property taxes, including accrued interest and costs of all the years 
and demanding payment on or before April 30th of the year following the tax year in 
which the circumstances causing withdrawal from the provisions of this chapter occur. 
When the circumstances listed in section 6259, subsection 4 occur, the amount of 
deferred taxes is due and payable 5 days before the date of removal of the property from 
the State. 
If the deferred tax liability of a property has not been satisfied by the April 30th demand 
date, the State Tax Assessor shall, within 30 days, record in the registry of deeds in the 
county where the real estate is located a tax lien certificate signed by the State Tax 
Assessor or bearing the assessor's facsimile signature, setting forth the total amount of 
deferred tax liability, a description of the real estate on which the tax was deferred and an 
allegation that a tax lien is claimed on the real estate to secure payment of the tax, that a 
demand for payment of the tax has been made in accordance with this section and that the 
tax remains unpaid. 
At the time of the recording of the tax lien certificate in the registry of deeds, the State 
Tax Assessor shall send by certified mail, return receipt requested, to each record holder 
of a mortgage on the real estate, to the holder's last known address, a true copy of the tax 
lien certificate. 
The cost to be paid by the property owner, or the owner's heirs or 
devisees, is the sum of the fees for recording and discharging of the lien as established by 
Title 33, section 751, subsection 10, plus $13. Upon redemption, the State Tax Assessor 
shall prepare and record a discharge of the tax lien mortgage. The lien described in 
section 552 is the basis of this tax lien mortgage procedure. 
The filing of the tax lien certificate, provided for in this section, in the registry of deeds 
creates a mortgage on the real estate to the State and has priority over all other mortgages, 
liens, attachments and encumbrances of any nature and gives to the State all rights 
usually instant to a mortgage, except that the mortgagee does not have any right of 
possession of the real estate until the right of redemption expires. 
Payments accepted during the redemption period may not interrupt or extend the 
redemption period or in any way affect the foreclosure procedures. 
Sec. 5. 36 MRSA §6255, sub-§3, as enacted by PL 1989, c. 534, Pt. C, § 1, is 
amended to read: 
3. Interest. Interest shall accrue accrues on the actual amount of taxes advanced to 
the municipality for the tax-deferred property at the rate of 6% per annum. If the State 
Tax Assessor determines that average residential mortgage rates in the State exceeded 6% 
for at least 12 consecutive months and that the interest rate differential creates an 
incentive for taxpayers to defer taxes primarily because of the lower interest rate provided 
by this chapter, the State Tax Assessor shall report this fact to the joint standing 
committee of the Legislature having jurisdiction over taxation matters, which may submit 
legislation to adjust the interest rate under this subsection. 
Sec. 6. 36 MRS A §6266, sub-§l, as enacted by PL 1989, c. 534, Pt. C, §1, is 
amended to read: 
1. Revolving account. This section establishes in the State Treasury the Senior 
Property Tax Deferral Revolving Account to be used by the bureau for the purpose of 
making the payments to municipal tax collectors of property taxes deferred for tax years 
beginning on or after April 1, 1990, as required by section 6257 under this chapter. 
Sec. 7. 36 MRSA §6267, as enacted by PL 1993, c. 707, Pt. G, §10, is repealed. 
Sec. 8. Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Revenue Services - Bureau of 0002 
Initiative: Provides one-time funds for the computer software necessary to administer the 
elderly property tax deferral program. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2007-08 
$0 
$0 
2008-09 
$100,000 
$100,000 
SUMMARY 
This bill provides a process that permits persons 65 years of age or older to defer 
property taxes on their homesteads. The State would reimburse municipalities for the 
deferred taxes and acquire a lien on the property to collect what is owed when the 
property is sold or otherwise transferred. 
FISCAL NOTE REQUIRED 
(See attached) 
Approved: 04/03/08 Mac. 
LD 
~3}O 
LR 3626(01) 
An Act To Permit Persons 65 Years of Age or Older To Defer Payment of Property Taxes 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Fiscal Detail and Notes 
Fiscal Note for Original Bill 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
2007-08 
2008-09 
$0 
$100,000 
$0 
$100,000 
Projections 
2009-10 
$840,000 
$840,000 
Projections 
2010-11 
$1,602,000 
$1,602,000 
The General Fund cost of the elderly property tax deferral program is estimated to be $840,000 in fiscal year 2009-10 
and $1,602,000 in fiscal yeat 20 I 0-11. The bi II includes a one-time General Fund appropriation of $1 00,000 in fiscal 
year 2008-09 for Maine Revenue Services' administrative costs.