An Act To Authorize Municipalities To Refund Amounts Collected in Excess of Tax Liens
Maine Legislature, Session 127, LD 0118
Committee: Taxation
Sponsors: McCORMICK
Amends: 36 MRSA §949

Legislative Document 
No. 118 
S.P. 51 
In Senate, January 22, 2015 
An Act To Authorize Municipalities To Refund Amounts Collected 
in Excess of Tax Liens 
(EMERGENCY) 
Reference to the Committee on Taxation suggested and ordered printed. 
HEATHER J.R. PRIEST 
Secretary of the Senate 
Presented by Senator McCORMICK of Kennebec. 
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 property tax year begins April 1st; and 
Whereas, in order to allow municipalities sufficient time to determine whether to 
refund any excess funds to a former owner of property foreclosed on by a municipality, 
this legislation needs to take effect as soon as possible; 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 §949 is enacted to read: 
§949.  Disbursement of excess funds 
1.  Authorization to disburse.  A municipality that obtains title to residential real 
estate under the operation of this article may disburse to the former owner the excess of 
any funds received from the disposition of that residential real estate. 
2.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings. 
A.  "Excess of any funds" means the amount obtained for the disposition of 
residential real estate less: 
(1)  All tax liens imposed on the residential real estate by the municipality, 
including interest; 
(2)  Fees for recordation and discharge of the lien, as established by Title 33, 
section 751, plus $13; 
(3)  The fee established in section 943 for sending a notice if the notice is actually 
sent, including certified mail, return receipt requested fees; 
(4)  Any court costs; 
(5)  All expenses incurred in disposing of the residential real estate; and 
(6)  Any property taxes that would have been assessed on the property while the 
property was held by the municipality within 180 days of foreclosure. 
B.  "Former 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. 
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
Under current law, if a municipality forecloses on a parcel of real estate for failure to 
pay taxes owed on that real estate, the municipality is under no obligation to return any 
funds that exceed the amount owed in taxes after the sale of the property. 
This bill authorizes a municipality that forecloses on residential real estate to return 
the excess funds, after subtracting the tax lien, interest, fees for recording the lien, costs 
of mailing notice, court costs, taxes that would have been assessed while the property was 
held by the municipality and any other expenses incurred in disposing of the real estate.