An Act To Authorize Municipalities To Refund Amounts Collected in Excess of Tax Liens
Maine Legislature, Session 127, LD 0118
Committee Amendment CA_A_S55 (Senate)
Amends: 36 MRSA §949

COMMITTEE AMENDMENT" A" to S.P. 51, L.D. 118, Bill, "An Act To 
Authorize Municipalities To Refund Amounts Collected in Excess of Tax Liens" 
Amend the bill by striking out all of section 1 and inserting the following: 
'Sec. 1. 36 MRSA §949 is enacted to read: 
§949. Disbursement of excess funds 
1. Authorization to adopt ordinance. A municipality that obtains title to property 
acquired under the operation of this article may, by ordinance, disburse to the fonner 
owner the excess of any funds received from the disposition of that property. 
The 
ordinance must contain standards governing the disbursement of the excess of any funds 
and the procedures that protect the interests of the taxpayers of the municipality. 
2. Definitions. As used in this section, unless the context otherwise indicates, the 
following tenns have the following meanings. 
A. "Excess of any funds" means the amount obtained by the municipality for the 
disposition of the property less: 
(1) All taxes and interest owed on the property and the amount of taxes and 
interest that would have been assessed had the property not been acquired by the 
municipality; 
(2) The municipality's cost of the lien and foreclosure process; 
(3) The municipality's cost of maintaining and disposing of the property; and 
(4) Unpaid sewer, water or other charges and fees imposed by the municipality 
or a quasi-governmental authority. 
B. "Fonner owner" means a party named on a tax lien mortgage at the time of the 
levy of a tax lien or that party's successors, heirs or assigns. 
3. 
Unorganized territory. The obligations of a municipality under this section 
apply to the State with regard to property in the unorganized territory. The State Tax 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" Pr" to S.P. 51, L.D. 118 
Assessor may adopt routine technical rules providing for the disbursement of the excess 
of any funds received from the disposition of property in the unorganized territory for 
nonpayment of taxes under chapter 115. 
4. Application. An ordinance or rule adopted under this section may apply to sales 
of property acquired through the tax lien and foreclosure process occurring on or after 
January 1,2015.' 
SUMMARY 
This amendment provides that disbursement of the excess of any funds acquired for 
nonpayment of property taxes must be authorized by municipal ordinance or, with regard 
to the unorganized territory, by rulemaking by the State Tax Assessor. The amendment 
clarifies the taxes, interest, fees and other costs connected with the disposal of property 
acquired through the tax lien and foreclosure process that may be retained by the 
municipality. The amendment also provides that an authorizing ordinance may apply to 
sales of property acquired through the tax lien and foreclosure process on or after January 
1,2015. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03118/15 
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LD 118 
LR 787(02) 
An Act To Authorize Municipalities To Refund Amounts Collected in Excess of Tax Liens 
Fiscal Note for Bill as Amended by Committee Amendment 'W,('3 -5'5 ) 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
Potential current biennium revenue decrease - Unorganized Territory Educational and Services Fund 
Fiscal Detail and Notes 
This legislation provides that the State Tax Assessor may adopt a rule providing for the disbursement to the fonner 
owner of the excess of any funds from the sale of property in the unorganized territory acquired by the State for 
nonpayment of property taxes and could result in a loss of revenue to the Unorganized Territory Educational and 
Services Fund. 
LR0787(02) - Fiscal Note - Page 1 of 1