An Act To Protect Elderly Residents from Losing Their Homes Due to Taxes or Foreclosure
Maine Legislature, Session 124, LD 1121
Committee Amendment CA_A_H621 (House)
Amends: 36 MRSA §941, 36 MRSA §942, 36 MRSA §943-B

COMMITTEE AMENDMENT "A" to H.P. 776, L.D. 1121, Bill, "An Act To 
Protect Elderly Residents from Losing Their Homes Due to Taxes or Foreclosure" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and insel1ing the following: 
'Sec. 1. 36 MRSA §941, 2nd Gjf is amended to read: 
The tax collector may, after the expiration of 8 months and within one year from the 
date of original commitment of the tax or, in the case of deferred taxes pursuant to 
chapter 908-A, after the due and payable date established pursuant to section 6271, 
subsection 5, give to the person against whom 5aitl the tax is assessed, or leave at hls the 
person's last and usual place of abode, or send by registered mail to hls the person's last 
known address, a notice in writing signed by said tax collector stating the amount of the 
tax, describing the real estate on which the tax is assessed and demanding the payment of 
such tax within 10 days after service of sllch notice. 
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Sec. 2. 36 MRSA §942, 2nd 'IT, as amended by PL 1983, c. 407, §2, is further 
amended to read: 
The tax collector may, after the expiration of 8 months and within one year after the 
date of original commitment of a tax or, in the case of deferred taxes pursuant to chapter 
908-A, after the due and payable date established pursuant to section 6271, subsection 5, 
give to the person against whom the tax is assessed, or leave at hls the person's last and 
usual place of abode, or send by cel1ified mail, return receipt requested, to hls the person's 
last known address, a notice in writing signed by the tax collector or bearing hls the tax 
collector's facsimile signature, stating the amount of the tax, describing the real estate on 
which the tax is assessed, alleging that a lien is claimed on the real estate to secure the 
payment of the tax, and demanding the payment of the tax within 30 days after service or 
mailing of the notice with $3 for the tax collector for making the demand together with 
the certified mail, return receipt requested, fee. In the case of taxes supplementally 
assessed, the tax collector may give that notice after the expiration of 8 months and 
within one year after the date of commitment of the supplementally assessed taxes. If an 
owner or occupant of real estate to whom the real estate is taxed dies before that demand 
COMMITTEE AMENDMENT 
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COMMITIEE AMENDMENT ,tt "to H.P. 776, L.D. 1121 
is made on hlm that owner or occupant, the demand may be made upon the personal 
representative of fl.i.s that owner's or occupant's estate or upon any of fl.i.s that owner's or 
occupant's heirs or devisees. 
Sec. 3. 36 MRS A §942, 5th err, as amended by PL ] 99], c. 846, §9, is fUliher 
amended to read: 
The costs to be paid by the taxpayer are the sum of the fees for recording and 
discharge of the lien as established by Title 33, section 75], plus $13, plus the fee 
established by section 943 for sending a notice 30 to 45 days prior to the foreclosing date 
of the tax lien mOligage if that notice is actually sent and all certified mail, return receipt 
requested, fees. In the case of a lien in effect pursuant to chapter 908-A, the costs to be 
paid include interest in the amount established under section 6271, subsection 3. Upon 
redemption, the municipality shall prepare and record a discharge. of the tax lien 
mortgage. 
Sec. 4. 36 MRSA §943-B is enacted to read: 
§943-B. Credit reporting; payment during redemption period 
If a municipality takes action under sections 942 or 943 to enforce a lien in effect 
pursuant to chapter 908-A that results in a record of a lien in a paIn's name being placed 
in that party's file with a consumer reporting agency, that lien must be considered 
inaccurate information under Title ] 0, section 1317 if the party submits proof to the 
consumer reporting agency that the deferred taxes were paid during the ] 8-month 
redemption period provided for in section 943. 
Sec. 5. 36 MRSA c. 908-A is enacted to read: 
CHAPTER 908-A 
MUNICIPAL PROPERTY TAX DEFERRAL FOR SENIOR CITIZENS 
§6271. Municipal authority 
1. Definitions. As used in this chapter, unless the context otherwise indicates, the 
following terms have the following meanings. 
A. "Eligible homestead" means the owner-occupied principal dwelling, either real or 
personal property, owned by a taxpayer and the land upon which it is located. If the 
dwelling is located in a multiunit building, the eligible homestead is the portion of the 
building actually used as the principal dwelling and its percentage of the value of the 
common elements and of the value of the tax lot upon which it is built. 
The 
percentage is the value of the dwelling compared to the total value of the building 
exclusive of the common elements, ifany. 
B. "Federal poverty level" means the nonfarm income official poverty line for a 
family of the size involved, as defined by the federal Office of Management and 
Budget and revised annually in accordance with the United States Omnibus Budget 
Reconciliation Act of ] 98], Section 673, Subsection 2. 
C. "Household income" has the meaning set out in section 6201, subsection 7. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT '1+" to 1-I.P. 776, L.D. 1121 
D. "Program" means a tax deferral program adopted by a municipality pursuant to 
subsection 2. 
_ E. "Tax-deferred property" means the property upon which taxes are deferred under 
this chapter. 
F. 
"Taxes" or "property taxes" means ad valorem taxes, assessments, fees and 
charges entered on the assessment and tax roll. 
G. "Taxpayer" means an individual who is responsible for payment of property taxes 
and has applied to pmticipate or is currently pmticipating in the program under this 
chapter. 
2. Authol"ity. The legislative body of a municipality may by ordinance adopt a 
property tax deferral program for senior citizens, referred to in this section as "the 
orogram." Uoon application by a taxpayer, a municipality may defer property taxes on 
property if the following conditions are met: 
A. The property is an eligible homestead where the taxpayer has resided for at least 
years prior to application; 
B. The taxpayer is an owner of the eligible homestead, is at least 70 years of age on 
April I st of the first year of eligibility and occupies the eligible homestead; and 
C. The household income of the taxpayer does not exceed 300% of the federal 
poverty level. 
An application, information submitted in support of an application and files and 
communications relating to an application for deferral of taxes under the program are 
confidential. Hearings and proceedings held by a municipality on an application must be 
held in executive session unless otherwise requested by the applicant. Nothing in this 
paragraph applies to the recording of liens or lists under subs~ction 3 or any enforcement 
proceedings undeltaken by the municipality pursuant to this chapter or other applicable 
law. 
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The municipality shall make available upon request the most recent list of tax-deferred 
propelties of that municipality required to be filed under subsection 3. The municipality 
may publish and release as public information statistical summaries concerning the 
program as long as the release of the information does not jeopardize the confidentiality 
of individually identifiable information. 
3. Effect of deferral. If propelty taxes are deferred under the program, the lien 
established on the eligible homestead under section 552 continues for the purpose of 
protecting the municipal interest in the tax-deferred property. Interest on the deferred 
taxes accrues at the rate of 0.5% above the othelwise applicable rate for delinquent taxes. 
In order to preserve the right to enforce the lien, the municipality shall record in the 
county registlY of deeds a list of the tax-deferred propelties of that municipality. The list 
must contain a description of each tax-deferred property as listed in the municipal 
valuation together with the name of the taxpayer listed on the valuation. The list must be 
updated annually to reflect the addition or deletion of tax-deferred properties, the amount 
of deferred taxes accrued for each property and payments received. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT·A "to H.P. 776, L.D. 1121 
The recording of the tax-deferred properties under this subsection is notice that the 
municipality claims' a lien against those properties in the amount of the deferred taxes 
p1us interest together with any fees paid to the county registry of deeds in connection with 
the recording. For a property deleted from the list, the recording serves as notice of 
release or satisfaction of the lien, even though the amount of taxes, interest or fees is not 
listed. 
4. Notice. The State Tax Assessor shall prepare a one-page notice of the effect of 
the deferral of property taxes under this section, of the right of the municipality to file a 
tax lien mortgage pursuant to chapter 105 and that the deferred taxes become due and 
payable as established in subsection 5. This notice must have a readability score, as 
determined by a recognized' instrument for measuring adult literacy levels, equivalent to 
no higher than a 6th grade reading level. A municipality that adopts the program shall 
provide a copy of this notice to each taxpayer applying to the program at the time of 
application and shall also annually provide to each taxpayer in the program, in lieu of a 
property tax bill, a copy of this notice together with an accounting of taxes deferred and 
interest accrued. 
5. Lien. When it is determined that one of the events set out in subsection 6 has 
occurred and that a property is no longer e1igible for property tax deferral under this 
chapter, the municipa1ity shall send notice by certified mail to the taxpayer, or the 
taxpayer's heirs or devisees, listing the total amount of deferred property taxes, including 
accrued interest and costs of all the years and establishing a due and payab1e date. For 
events listed in subsection 6, paragraphs A, Band C, payment is due within 45 days of 
the date of the notice. When the event listed in subsection 6, paragraph D occurs, the 
total amount of deferred taxes is due and payable 5 days before the date of removal of the 
property from the State. The municipality shall include in the notice a statement that the 
lien enforcement procedures pursuant to chapter 105, subchapter 9 apply. 
If the deferred tax liability of a property has not been satisfied by the date established 
pursuant to this subsection, the municipality may enforce the lien according to procedures 
in chapter 105, subchapter 9. 
Partial payments accepted during the 18-month redemption period provided for in section 
may not interrupt or extend the redemption period or in any way affect foreclosure 
procedures. 
6. 
Events reqniring the payment of deferred tax and interest. 
Subject to 
subsection 7, all deferred taxes and accrued interest must be paid pursuant to subsection 5 
when: 
A. The taxpayer dies; 
B. Some person other than the taxpayer becomes the owner ofthe property; 
C. The tax-deferred property is no longer occupied by the taxpayer as a principal 
residence, except that this paragraph does not apply if the taxpayer is required to be 
absent from the eligible homestead for health reasons; or 
D. The tax-deferred property, a mobile home, is moved out of the State. 
7. Election to continne deferral. If one of the events listed in subsection 6 occurs, 
and the ownership of the eligible homestead is transferred to another member of the same 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT·A "to I-J.P. 776, L.D. 1121 
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household, the transferee may apply to the municipality for continuation of the deferral of 
taxes if the transferee meets the conditions in subsection 2, paragraphs Band C. 
8. Repeal of progl·am. A municipality that has adopted the program under this 
section may discontinue it through the same procedure by which the program was 
adopted; however, any taxes deferred under the program continue to be deferred under 
the conditions of the program on the date it was ended.' 
SUMMARY 
This amendment replaces the bill. It allows a municipality to establish a property tax 
deferral program for eligible senior citizens. In municipalities that offer the program, it 
allows homeowners to apply for a deferral of their property taxes if they are at least 70 
years of age, occupy the eligible homestead, have lived in their home for at least 10 years 
and have a household income of less than 300% of the federal poverty level. The taxes 
may be deferred until the time that celiain events occur, including the death of the 
homeowner or sale of the home, at which time the repayment of the taxes is required 
within an established time period, along with payment of interest at a rate of 0.5% above 
the annually established rate for delinquent taxes. The amendment provides procedures 
for the municipality to preserve the right to enforce a lien. It requires the municipality to 
use procedures in current law to enforce a lien and for foreclosure. 
It requires the 
municipality to provide a copy of a notice prepared by the State Tax Assessor, which 
describes the effect of deferral of property taxes and of the right of the municipality to 
foreclose on the tax lien mOligage, to each applicant for the program at the time of 
application. It also requires the municipality to provide a copy of this notice annually, in 
lieu of a propeliy tax bill, along with an accounting of taxes deferred and interest accrued. 
It allows a municipality to repeal the program through the same procedure by which it 
was adopted; however, any taxes deferred under the program must continue to be 
deferred under the conditions of the program on the date it was ended. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 01/25/10 Mac:.. 
LD 1121 
LR 1242(02) 
An Act To Protect Elderly Residents from Losing Their Homes Due to Taxes or Foreclosure 
Fiscal Detail and Notes 
Fiscal Note for Bill as Amended by Committee Amendment ,A, 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
This bill presents municipalities with the option of adopting a property tax deferral program for eligible homestead 
property owned by their residents seventy (70) years of age or older whose income is within specified income levels. 
Ancillary duties required of the State Tax Assessor in connection with any such programs can be performed within 
existing budgeted resources. 
LR 1242(02) - Fiscal Note - Page 1 of 1 
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