An Act To Amend the Municipal Hardship or Poverty Tax Abatement Law To Reflect the Replacement of the Circuitbreaker Program
Maine Legislature, Session 126, LD 1654
Committee: Taxation
Sponsors: SAVIELLO, BEAVERS, BOYLE
Amends: 36 MRSA §841

Legislative Document 
No. 1654 
S.P. 647 
In Senate, December 23, 2013 
An Act To Amend the Municipal Hardship or Poverty Tax 
Abatement Law To Reflect the Replacement of the Circuitbreaker 
Program 
(EMERGENCY) 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Received by the Secretary of the Senate on December 23, 2013.  Referred to the Committee 
on Taxation pursuant to Joint Rule 308.2 and ordered printed. 
DAREK M. GRANT 
Secretary of the Senate 
Presented by Senator SAVIELLO of Franklin. 
Cosponsored by Representative BEAVERS of South Berwick and 
Senator: BOYLE of Cumberland. 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, the Circuitbreaker Program was replaced with a property tax fairness 
credit in the First Regular Session of the 126th Legislature; and 
Whereas, a municipality that provides a hardship or poverty tax abatement to its 
residents was permitted to consider benefits provided to those residents under the 
Circuitbreaker Program when determining the ability of residents to pay property taxes 
due the municipality; and 
Whereas, there is no provision for a municipality to consider the property tax 
fairness credit in determining the ability of a resident to pay property taxes, limiting the 
ability of municipalities to determine accurately residents' needs for abatement; and 
Whereas, without the changes made by this legislation, municipalities may be 
forced to reduce hardship or poverty tax abatement, hurting those who need it, or provide 
abatement in amounts that are more than residents are entitled to; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §841, sub-§2, as repealed and replaced by PL 2013, c. 424, Pt. 
A, §24, is amended to read: 
2.  Hardship or poverty.  The municipal officers, or the State Tax Assessor for the 
unorganized territory, within 3 years from commitment, may, on their own knowledge or 
on written application, make such abatements as they believe reasonable on the real and 
personal taxes on the primary residence of any person who, by reason of hardship or 
poverty, is in their judgment unable to contribute to the public charges.  The municipal 
officers, or the State Tax Assessor for the unorganized territory, may extend the 3-year 
period within which they may make abatements under this subsection. 
Municipal officers or the State Tax Assessor for the unorganized territory shall: 
A.  Provide that any person indicating an inability to pay all or part of taxes that have 
been assessed because of hardship or poverty be informed of the right to make 
application under this subsection; 
B.  Assist individuals in making application for abatement; 
C.  Make available application forms for requesting an abatement based on hardship 
or poverty and provide that those forms contain notice that a written decision will be 
made within 30 days of the date of application; 
D.  Provide that persons are given the opportunity to apply for an abatement during 
normal business hours; 
E.  Provide that all applications, information submitted in support of the application, 
files and communications relating to an application for abatement and the 
determination on the application for abatement are confidential.  Hearings and 
proceedings held pursuant to this subsection must be in executive session; 
F.  Provide to any person applying for abatement under this subsection, notice in 
writing of their the decision within 30 days of application; and 
G.  Provide that any decision made under this subsection include the specific reason 
or reasons for the decision and inform the applicant of the right to appeal and the 
procedure for requesting an appeal. 
For the purpose of this subsection, the municipal officers may set off or otherwise treat as 
available benefits provided to an applicant under chapter 907 or the property tax fairness 
credit provided under section 5219-II, subsection 2 when determining if the applicant is 
able to contribute to the public charges. 
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
Under current law, a municipality may abate the personal and real property taxes 
imposed on the primary residence of a resident who, by reason of hardship or poverty, is 
unable to pay the full amount of taxes assessed on that property.  In making a 
determination as to the ability of a resident to pay, municipal officers were allowed to 
consider any benefit received by the resident under the Circuitbreaker Program, which 
was discontinued and replaced with a property tax fairness credit in the First Regular 
Session of the 126th Legislature. 
This bill allows municipal officers, when determining the ability of a resident to pay 
assessed property taxes for purposes of an abatement, to take into account any property 
tax fairness credit received by that resident.