An Act To Protect Elderly Residents from Losing Their Homes Due to Taxes or Foreclosure
Maine Legislature, Session 124, LD 1121
Sponsors: CHASE, NASS, BRYANT, PILON, SIROIS
Amends: 36 MRSA §6250-A, 36 MRSA §6253, 36 MRSA §6255, 36 MRSA §6257, 36 MRSA §6266-A, 36 MRSA §6267, 36 MRSA §464, 36 MRSA §684, 36 MRSA §949

MAINE STATE LEGISLATURE 
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124th MAINE LEGISLATU 
Legislative Document' 
, No. 1121 
H.P.776 
,House of Representatives, March 20, 2009 
An Act To Protect Elderly Residents from Losing Their Homes Due 
to Taxes or Foreclosure 
Reference to the Committee o.n Taxation suggested and ordered printed. 
Presented by Representative CHASE of Wells. 
Cosponsored by Senator NASS of York and 
'"711~~ 111· m!LC~{ 
MILLICENT'M. MacFARLAND 
Clerk 
Representatives: BRYANT of Windham, CORNELL du HOUX of Brunswick, CROCKETT of, 
Bethel, PILON of Saco, SIROIS of Tumer. 
Printed l11l recycled p::Jpcr 
Be it enacted by the People of the State of Maine as foUows: 
lPARTA 
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Sec. A-1.36 MRSA §6250-A is enacte~ to read: 
§62S0-A. Short title 
This chapter may he !mown and cited as the Senior Property Tax Deferral Program. 
Sec. A-2. 36 MRSA .§62S1, sub-§l, as repealed and replaced by PL 1993, c. 395, . 
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§31, is a¥iencled to read: . 
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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 1 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 
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15. 
B. 
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 
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calendar year in which the claim is filed. 
The municipal assessor shall forward each claim filed under this subsec,tion to the bureau 
within 30 days of receipt and the bureau shall determine if the property is eligible for 
deferral. 
Claims from new applicants may not be filed pursuant to this chapter prior to January 1, 
1994. For purposes of this section, "neVi applicants" means any person or persons that· 
have not filed claims prior to :April1. 1991. 
Sec. A-3; 36 MRS A §62S1, sub-§2, as enacted by PL 1989, c. 534, Pt. C, § 1, is 
amended to read: 
2. Property tax deferral. \X/hen the taxpayer elects 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· 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. 
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Sec. A-4. 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 -sha!l must: . 
A. Desoribe Identify the homestead; 
B. 
Reoite faots establishing the Establish eligibility for the deferral under the 
provisions of this chapter, ine1uding facts that establish that the household inoome as 
def'inen in section 6201, subsection 7, of the individual, or, in the case of 2 or more 
individuals claiming the deferral jointly,'.vas less than $32,QOO for the calendar year 
immediately preceding the calendar year in which the claim is filed; and 
C. Have 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 applicant making the e1aim to the effect 
that the statements contained in the claim are true. 
Sec. A-5. 36 MRSA §6255, sub-§3, as enacted by PL 1989, c. 534, Pt. C, §1, is 
amendec;l to read: 
3. Interest. Interest c shall accrue accrues on the actual amount of taxes advanced to 
the municipality for the tax-deferr~d 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 the previous 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 interesr rate under this subsection. 
Sec. A-6. 36 MRSA §6257, sub-§l-A, as enacted by PL 1991, c. 528, Pt. DD, §1 
and affected by Pt. RRR and enacted by c. 591, Pt. DD, § 1, is amended to read: 
I-A. Prorated payment of deferred taxes. The State Tax Assessor is authorized to 
prorate payments to municipalities for claims filed pursuant to this chapter if the amount 
available in the Senior Property Tax Deferral Revolving Aocount Fund established in 
section B2-6e 6266-A in any fiscal year is insufficient to make full payments to all 
municipalities. If the applicant for deferred taxes can not pay the difference due to the 
municipality, the municipality that does not receive the full amount of deferred property 
taxes may cause a tax lien certificate to be filed in the county registry of deeds for the 
amount not received. 
Sec. A-7. 36 MRS A §6266, as enacted by PL 1989, c. 534, pt.e, §1, is repealed. 
Sec. A-S. 36 MRSA §6266-A is enacted to read: 
§6266-A. Senior Property Tax. Deft:rral Fund 
1. Senior Property Tax Deferral Fund. There is established the Senior Property 
Tax Deferral Fund, referred to in this section as "the deferral fund," in the bureau for the 
purpose of making the payments to municipal tax collectors of property taxes deferred 
under this chapter. Funds in the deferral fund do not lapse but must be carried forward. 
2. Funding from real estate transfer tax. All money.received from real estate 
transfer tax pursuant to section 464I-B, subsection 3-A must be credited to the deferral 
fund and available for the purposes stated in subsection 1. 
3. Payments credited. All money received by the bureau under this chapter as 
repayments of deferred property taxes, including the interest accrued under sectiori 6255, 
subsection 3, must, upon receipt, be credited to the deferral fund and available for the 
purposes stated in subsection 1. 
4. Appropriation request. If there is not sufficient money in the deferral fund to 
make the payments required by subsection 1, the State Tax Assessor shall request an 
appropriation from the General Fund that together with the money in the deferral fund 
provides an amount sufficient to make the required payments. 
5. 
General Fund. reimbursement. When the bureau detennines that funds in 
sufficient amounts are available in the deferral account, the bureau shall repay to the 
General Fund the amounts advanced as appropriations under subsection 4, plus accrued 
interest. 
6. Report and determination of assessor; suspension of deposits from real estate 
transfer tax. The State Tax Assessor shall determine annually the amount in the deferral 
fund, projected deposits under subsection 2, anticipated payments under subsection 3 and 
projected payments to fulfill the purposes of subsection 1 and. detennine whether 
sufficient funds exist to carry out the purposes of subsection 1 for the following year 
without further distributions from the real estate transfer tax pursuant to section 434I-B, 
subsection 3-A. The assessor shall submit a report of the detenninations by May 1 st 
annually to the Treasurer of State c111d the joint standing committee of the Legislature 
having jurisdiction over taxation maners. If the assessor detennines based on this. report 
that further distributions from the real estate transfer tax pursuant to section 4341-B, 
subsection 3-A are or are not needed, the assessor shall take appropriate action pursuant 
to section 434I-B, subsection 3-A. 
Sec. A-9. 36 MRSA §6267, as enacted by PL 1993, c. 707, Pt. G, §10, is repealed. 
Sec. A-lO. Effective date. This Part takes effect October 1,2009 and applies to 
property tax years beginning on or after April 1, 2010. 
PART B 
Sec. B-1. 36 MRSA §464l-B, sub-§3-A is enacted to read: 
3-A. Distribution to Senior Property Tax Deferral Program. Upon receipt of the 
funds from each register of deeds under subseCtion 3, the State Tax Assessor shall deposit 
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0.5% of those funds into the Senior Property Tax Deferral Fund established in section 
6266-A, subsection 1. If the assessor determines, pursuant to section 6266-A, subsection 
6, that distributions pursuant to tIns subsection are not needed for the following year, the 
assessor shall cease distributions to the Senior Property Tax Deferral Fund. 
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remaining funds must be distributed as specified in subsection 4. 
Sec. B-2. Effective date. This Part takes effect October 1, 2009. 
PARTe 
Sec. C-l. 36 MRSA §684, sub-§l, as amended by PL 2007, c. 438, §21, rs 
further amended to read: 
1. 
Generally. The bureau shall furnish to the assessor of each municipality a 
sufficient number of printed forms to be filed by applicants for an exemption under this 
subchapter and shall determine the content of the forms. The forms must contain a place 
for the Clpplicant's birth date. A municipality shall provide to its inhabitants reasonable 
notice of the availability of application forms. 
An individual clainling an exemption 
under this subchapter for the first time shall file the application form with the assessor or 
the assessor's representative. The application must be filed on or before April 1 st of the 
year on which the taxes are based. 
Sec. C-2. 36 MRSA §949 is enact€d to read: 
§949. Suspension of foreclosure for homesteads of persons 65 years of age' or older 
Notwithstanding the other provisions of this subchapter, a tax lien mortgage may not 
'be foreclosed with respect to the homestead as defined in section 681 of a person who is 
years of age or older who has been a resident in the homestead for 10 years or longer 
until the real estate is transferred by deed or. at the death of the person eligible for the 
suspension of foreclosure provided in this section. Liens on the real estate continue in 
effect until the death of the property owner or the property is otherwise' transferred, and 
interest on the unpaid taxes continues to accrue until the lien is satisfied. 
Sec. C-3. Application. This Part applies to a tax lien in existence on or after 
October 1,2009. 
SUMMARY 
Part A provides a process, through the Senior Property Tax Deferral Program, that 
permits persons 65 years of age or older to defer property taxes on their homesteads 
without regard to income. 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. 
Part B requires 0.5% of the real estate transfer tax paid to the. State to be deposited in 
a fund to be used to fund the Senior Property Tax Deferral Program. Based on an annual 
assessment by the State Tax Assessor, if the assessor determines that the Senior Property 
Tax Deferral Program has suffiCient funding without the distribution from the real estate 
transfer tax, that distribution is suspended for that year. 
Part C provides that a lien for unpaid property taxes may not be foreclosed against the 
homestead of a person who is at least 65 years pf age and has lived in the homestead for 
at least 10 years until the property is transferred by deed or upon death. Liens would 
continue in effect and would accrue interest until the lien is satisfied. 
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