An Act To Provide Property Tax Deferral for Senior Citizens and People with Disabilities
Maine Legislature, Session 127, LD 1126
Committee: Taxation
Sponsors: COOPER, GRATWICK, BEAVERS, BEEBE-CENTER, HYMANSON, BAKER
Amends: 36 MRSA §5403, 36 MRSA §6251, 36 MRSA §6253, 36 MRSA §6261, 36 MRSA §6267

Legislative Document 
No. 1126 
H.P. 777 
House of Representatives, March 26, 2015 
An Act To Provide Property Tax Deferral for Senior Citizens and 
People with Disabilities 
Reference to the Committee on Taxation suggested and ordered printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative COOPER of Yarmouth. 
Cosponsored by Senator GRATWICK of Penobscot and 
Representatives: BEAVERS of South Berwick, BEEBE-CENTER of Rockland, HYMANSON 
of York, Senator: BAKER of Sagadahoc. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §5403, as repealed and replaced by PL 2013, c. 551, §4, is 
amended to read: 
§5403.  Annual adjustments for inflation 
Beginning in 2015, and each calendar year thereafter, on or about September 15th, 
the assessor shall multiply the cost-of-living adjustment for taxable years beginning in the 
succeeding calendar year by the dollar amounts of the tax rate tables specified in section 
5111, subsections 1-D, 2-D and 3-D and of the benefit base amounts in section 5219-KK, 
subsection 1, paragraph A.  Beginning in 2013, and each calendar year thereafter, on or 
about September 15th, the assessor shall multiply the cost-of-living adjustment for 
taxable years beginning in the succeeding calendar year by the dollar amount of the 
itemized deduction limitation amount in section 5125, subsection 4.  Beginning in 2016, 
and each calendar year thereafter, on or about September 15th, the assessor shall multiply 
the cost-of-living adjustment tor taxable years beginning in the succeeding calendar year 
by the dollar amount of the income limitation amount in section 6251, subsection 1, 
paragraph B.  If the benefit base amounts, itemized deduction limitation amount, income 
limitation amount or the dollar amounts of each rate bracket, adjusted by application of 
the cost-of-living adjustment, are not multiples of $50, any increase must be rounded to 
the next lowest multiple of $50.  If the cost-of-living adjustment for any taxable year 
would be less than the cost-of-living adjustment for the preceding calendar year, the cost-
of-living adjustment is the same as for the preceding calendar year.  The assessor shall 
incorporate such changes into the income tax forms, instructions and withholding tables 
for the taxable year. 
Sec. 2.  36 MRSA §6251, sub-§1, as repealed and replaced by PL 1993, c. 395, 
§31, is amended to read: 
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 1st but no later than April 1st of the 
first year in which deferral is claimed if: 
A.  The individual or each at least one individual, in the case of 2 or more individuals 
filing a claim jointly, is 65 years of age or older or retired from gainful employment 
by reason of physical disability on April 1st of the year in which the claim is filed; 
and 
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 5219-KK, 
subsection 7 1, paragraph D, of less than $32,000 $40,000 for the calendar year 
immediately preceding the calendar year in which the claim is filed. 
The municipal assessor shall forward each claim filed under this subsection 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, "new applicants" means any person or persons that 
have not filed claims prior to April 1, 1991. 
Sec. 3.  36 MRSA §6251, sub-§2, as enacted by PL 1989, c. 534, Pt. C, §1, is 
amended to read: 
2.  Property tax deferral.  When the If a taxpayer elects 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 1st 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. 
Sec. 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 claim for deferral under this chapter shall must be 
in writing on a form supplied by the bureau and shall must: 
A.  Describe the homestead; 
B.  Recite facts Provide information establishing the eligibility for the deferral under 
the provisions of this chapter, including facts that establish information that 
establishes that the household income, as defined in section 6201 5219-KK, 
subsection 7 1, paragraph D, of the individual, or, in the case of 2 or more individuals 
claiming the deferral jointly, was less than $32,000 $40,000 for the calendar year 
immediately preceding the calendar year in which the claim is filed; and 
C.  Have attached Contain 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 claim to the effect 
that the statements contained in the claim are true. 
Sec. 5.  36 MRSA §6261, sub-§1, ¶A, as enacted by PL 1989, c. 534, Pt. C, §1, is 
amended to read: 
A.  The spouse of the taxpayer is or will be 65 60 years of age or older not later than 
months from the day the circumstance listed in section 6259, subsections 1 to 3 
occurs; and 
Sec. 6.  36 MRSA §6261, sub-§2, as enacted by PL 1989, c. 534, Pt. C, §1, is 
amended to read: 
2.  Continuation of deferral by spouse.  A spouse who does not meet the age 
requirements of subsection 1, paragraph A, but is otherwise qualified to continue the 
property in its tax-deferred status under subsection 1 may continue the deferral of 
property taxes deferred for previous years by filing a claim within the time and in the 
manner provided under section 6251.  If a spouse eligible for and continuing the deferral 
of taxes previously deferred under this subsection becomes 65 60 years of age prior to 
April 1st of any year, the spouse may elect to continue the deferral of previous years' 
taxes deferred under this subsection and may elect to defer the current assessment year's 
taxes on the homestead by filing a claim within the time and in the manner provided 
under section 6251.  Thereafter, payment of the taxes levied on the homestead and 
deferred under this subsection and payment of taxes levied on the homestead in the 
current assessment year and in future years may be deferred in the manner provided in 
and subject to this chapter. 
Sec. 7.  36 MRSA §6267, as enacted by PL 1993, c. 707, Pt. G, §10, is repealed. 
SUMMARY 
This bill reinstates the State's property tax deferral program, which was in effect for 
applications filed before April 1, 1991.  The bill modifies the program to include 
households with at least one individual who is 65 years of age or older or who retired 
from gainful employment due to disability and to surviving spouses who are at least 60 
years of age, and provides that household income must be less than $40,000.  This limit is 
indexed for inflation in 2016 and annually thereafter.