Maine Legislature, Session 124, LD 1233
Committee: Taxation
Sponsors: WEAVER, NASS, EDGECOMB, HAMPER, LEWIN, RICHARDSON, WHEELER, McCORMICK

Legislative Document 
No. 1233 
H.P.853 
HOllse of Representatives, March 26, 2009 
Ali Act To Provide Property Tax Relief to Senior Citizens 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative WEAVER of York. 
Cosponsored by Senator NASS of York and 
'111~ /11. 711t1C~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: EDGECOMB ofCariboll, HAMPER of Oxford, JOYofCrystal, LEWIN of 
Eliot, MORRISON ofSollth Portland, RICHARDSON of Warren, WHEELER of Kittery, 
Senator: McCORMICK of Kennebec. 
Printed on recycled p;;)p~r 
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Be it enacted by tIDe People of tbe Statte of Maine as follows: 
Sec. 1. 36 MRSA c. 901 ~A is enacted to read: 
CHAPTER 90l-A 
ELDER Y RESIDENTS PR.OPERTY TAX DEFERMENT 
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§6131. SlDort title 
This chapter may be known and cited as "the Elderly Residents Property Tax 
Deferment Act. " 
. §6132. Municipal property tax deferment program 
Each municipality that . levies taxes on real property pursuant to chapter 105 may 
implement, if approved by the voters of that municipality at refereIldum, a program that 
provides for deferred payment of property taxes, referred to in this chapter as "the 
program. " 
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1. Eligibility. 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 municipillity; 
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 that does not· exceed 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. Qualifying event. 
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 latest of the following qualifying event~: 
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A. The date the person attained at least 65 years of age; 
B. The date of purchase of the residerice;and 
C. April 1, 2009. 
3. Deferment of property taxes. If the municipalitydetenTIines that the person 
qualifies, the. municipality shall defer any property taxes above the amount assessed the 
year the person files for participation pursuant to subsection 4. The property taxes must 
continue to be deferred until the home is sold or transferred, the person chooses to stoP. 
participating in the program or the person becomes ineligible to participate in the 
program. 
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4. Filing; notice; records. An eligible person who wants to participate in the 
program shall file notice'with' the municipality, on a fonn supplied by the State Tax 
Assessor to the municipality, of the intent to participate, indicating the date on which the 
property taxes are to be based using the criteria in subsection 2, paragraph A, B or C. 
The fonn must be filed no later than December 31 st of any year following the occurrence 
ofthe qualifying event described in subsection 2 upon which the tax deferral is to be 
based. 
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The municipality, on the property tax bill sent to a participant in the program, shall 
indicate: 
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A. The taxes due; 
B. The amount of taxes deferred for that tax pe~iod; 
C. The cumulative taxes deferred over the course of participation in the program; and. 
D. The maximum annual income the participant may have and still remain eligible to 
participate in the program. 
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The municipality shall keep a record of these amounts. 
5. Decrease in assessed value. Notwithstanding subsection 3, the assessment of 
eligible property under this chapter may be decreased to reflect the diminution of the 
value due to revaluation, destruction or subtraction. 
6. Repayment of property taxes; interest. When the owner of property enrolled in 
the program no longer meets the eligibility requirements in subsection 1 or the property is 
sold or transferred or withdrawn frcim the program, the total taxes deferred under 
subsection 3 must be paid not later than 30 days after the sale, transfer or withdrawal. If 
the ineligibilltyis 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 the taxing municipality at· least 30 days prior to the sale, transfer or 
withdrawal. A person who no longer meets the eligibility requirements in subsection 1, 
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. 
The tax collectorshalI, 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; 
B. The actual amount of property taxes assessed and the amourit actually paid each 
year during participation in the program; 
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C. The current assessment; and 
D. The amount oUhe additional assessment, if any, imposed for administrative costs 
pursuant to subsection 7. 
Notwithstanding section 505, deferred property taxes that are not repaid within the time 
required by this subsection accrue interest at the rate of 6% per annum. 
7. 
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 
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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 by 
an entry clearly designating that property as tax-deferred property. 
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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 . 
§6135. Reimbursement for state-mandated costs 
The bureau shall reimburse municipalities and the Unorganized Territory Education 
and SerVices Fund under chapter 115. for state-mandated costs in the manner provided in 
Title 30-A, section 5685~ 
SUMMARY 
This bill allows a municipality, by vote of its residents, 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 during the year the 
person attained at least 65. years of age, the date the person purchased the homestead or 
April 1, 2009, whichever is latest. The payment 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 p~icipation in the program must be paid to the 
municipality. Deferred taxes that are not paid within the required time accrue interest. 
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In order t6 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. 
The bill requires the Department of Administrative ahd Financial SerVices, Bureau of 
Revenue Services to reim~urse a municipality and the Unorganized Territory Education 
and Services Fund for any state-mandated costs.