An Act To Assist Seniors and Certain Persons with Disabilities in Paying Property Taxes
Maine Legislature, Session 128, LD 1196
Committee: Taxation
Sponsors: BAILEY, DENNO, HERBIG, CHENETTE
Amends: 36 MRSA §5403, 36 MRSA §6251, 36 MRSA §6253, 36 MRSA §6254, 36 MRSA §6255, 36 MRSA §6256, 36 MRSA §6257, 36 MRSA §6258, 36 MRSA §6259, 36 MRSA §6260, 36 MRSA §6261, 36 MRSA §6262, 36 MRSA §6263, 36 MRSA §6266, 36 MRSA §6267

Legislative Document
No. 1196
H.P. 833
House of Representatives, March 28, 2017
An Act To Assist Seniors and Certain Persons with Disabilities in 
Paying Property Taxes
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative BAILEY of Saco.
Cosponsored by Representatives: DENNO of Cumberland, HERBIG of Belfast, McCREIGHT 
of Harpswell, Senator: CHENETTE of York.
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §5403, first ¶, as enacted by PL 2015, c. 267, Pt. DD, §33, is 
amended to read: 
On or about September 15th of each year as specified in subsections 1 to 6 7, the 
assessor shall multiply the cost-of-living adjustment for taxable years beginning in the 
succeeding calendar year by the following: 
Sec. 2.  36 MRSA §5403, sub-§7 is enacted to read: 
7.  Deferral of certain homestead taxes.  Beginning in 2019 and each year 
thereafter, the amount of the maximum income limitation for deferral of homestead 
property taxes under section 6251, subsection 1, paragraph B and section 6253, 
subsection 1, paragraph B. 
Sec. 3.  36 MRSA §6251, sub-§1, as repealed and replaced by PL 1993, c. 395, 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. 4.  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. 5.  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, of the individuals, 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. 6.  36 MRSA §6254, sub-§1, as amended by PL 2007, c. 695, Pt. A, §45, is 
further amended to read: 
1.  Lien.  The lien provided in section 552 must continue for purposes of protecting 
the State's deferred tax interest in tax deferred tax-deferred property.  When it is 
determined that one of the events set out in section 6259 has occurred and that a property 
is no longer eligible for property tax deferral under this chapter, the State Tax Assessor 
shall send notice by certified mail to the owner, or the owner's heirs or devisees, listing 
the total amount of deferred property taxes, including accrued interest and costs of all the 
years and demanding payment on or before April 30th of the year following the tax year 
in which the circumstances causing withdrawal from the provisions of this chapter occur. 
When the circumstances listed in section 6259, subsection 4 occur, the amount of 
deferred taxes is due and payable 5 days before the date of removal of the property from 
the State. 
If the deferred tax liability of a property has not been satisfied by the April 30th demand 
date, the State Tax Assessor shall, within 30 days, record in the registry of deeds in the 
county where the real estate is located a tax lien certificate signed by the State Tax 
Assessor or bearing the assessor's facsimile signature, setting forth the total amount of 
deferred tax liability, a description of the real estate on which the tax was deferred and an 
allegation that a tax lien is claimed on the real estate to secure payment of the tax, that a 
demand for payment of the tax has been made in accordance with this section and that the 
tax remains unpaid. 
At the time of the recording of the tax lien certificate in the registry of deeds, the State 
Tax Assessor shall send by certified mail, return receipt requested, to each record holder 
of a mortgage on the real estate, to the holder's last known address, a true copy of the tax 
lien certificate.  The cost to be paid by the property owner, or the owner's heirs or 
devisees, is the sum of the fees for recording and discharging of the lien as established by 
Title 33, section 751, plus $13.  Upon redemption, the State Tax Assessor shall prepare 
and record a discharge of the tax lien mortgage.  The lien described in section 552 is the 
basis of this tax lien mortgage procedure. 
The filing of the tax lien certificate, provided for in this section, in the registry of deeds 
creates a mortgage on the real estate to the State and has priority over all other mortgages, 
liens, attachments and encumbrances of any nature and gives to the State all rights 
usually instant to a mortgage, except that the mortgagee does not have any right of 
possession of the real estate until the right of redemption expires. 
Payments accepted during the redemption period may not interrupt or extend the 
redemption period or in any way affect the foreclosure procedures. 
Sec. 7.  36 MRSA §6254, sub-§2, as repealed and replaced by PL 1989, c. 713, 
§4, is amended to read: 
2.  Foreclosure.  If the mortgage, including interest and costs, is not paid within 12 
months of the date on which the certificate was filed in the registry of deeds, as provided 
in this section, the mortgage is deemed foreclosed and the right of redemption expired. 
Sec. 8.  36 MRSA §6255, as enacted by PL 1989, c. 534, Pt. C, §1, is amended to 
read: 
§6255.  Listing of tax-deferred property 
1.  Tax-deferred property list.  If eligibility for deferral of homestead property is 
established as provided in this chapter, the bureau shall notify the municipal assessor and 
the municipal assessor shall show on the current ad valorem assessment and tax roll 
which property is tax-deferred property by an entry clearly designating that property as 
tax-deferred property. 
2.  Tax statement.  When requested by the bureau, the municipal tax collector shall 
send to the bureau as soon as the taxes are extended upon the roll the tax statement for 
each tax-deferred property. 
3.  Interest.  Interest shall accrue on the actual amount of taxes advanced to the 
municipality for the tax-deferred property at the rate of 6% per annum. 
Sec. 9.  36 MRSA §6256, sub-§2, as amended by PL 1989, c. 713, §5, is further 
amended to read: 
2.  Notice of recording.  The recording of the tax-deferred properties under 
subsection 1 is notice that the bureau claims a lien against those properties in the amount 
of the deferred taxes plus interest together with any fees paid to the county register of 
deeds in connection with the recording, release or satisfaction of the lien, even though the 
amount of taxes, interest or fees is not listed. 
Sec. 10.  36 MRSA §6257, sub-§2, as enacted by PL 1989, c. 534, Pt. C, §1, is 
amended to read: 
2.  Accounts maintained.  The bureau shall maintain accounts for each deferred 
property and shall accrue interest only on the actual amount of taxes advanced to the 
municipality. 
Sec. 11.  36 MRSA §6258, sub-§1, ¶¶B and D, as enacted by PL 1989, c. 534, 
Pt. C, §1, are amended to read: 
B.  Show the total amount of deferred taxes remaining unpaid since initial application 
for deferral and the interest accruing therein to November 15th of the current year; 
D.  Contain any other information that the bureau considers necessary to facilitate 
administration of the homestead deferral program including, but not limited to, the 
right of the taxpayer to submit any amount of money to reduce the total amount of the 
deferred taxes and interest. 
Sec. 12.  36 MRSA §6259, as enacted by PL 1989, c. 534, Pt. C, §1, is amended to 
read: 
§6259.  Events requiring payment of deferred tax 
Subject to section 6261, all deferred property taxes, including accrued interest, 
become payable as provided in section 6260 when: 
1.  Death of claimant.  The taxpayer who claimed deferment of collection of 
property taxes on the homestead dies or, if there was more than one claimant, the survivor 
of the taxpayers who originally claimed deferment of collection of property taxes under 
section 6251 dies; 
2.  Sale of property.  The property with respect to which deferment of collection of 
taxes is claimed is sold, a contract to sell is entered into, or some person other than the 
taxpayer who claimed the deferment becomes the owner of the property; 
3.  Claimant moves.  The tax-deferred property is no longer the homestead of the 
taxpayer who claimed the deferral, except in the case of a taxpayer required to be absent 
from that tax-deferred property by reason of health; or 
4.  Removal of home.  The tax-deferred property, a mobile or floating home, is 
moved out of the State. 
Sec. 13.  36 MRSA §6260, sub-§2, as amended by PL 1991, c. 846, §38, is 
further amended to read: 
2.  Deferred property taxes due.  The amounts of deferred property taxes, including 
accrued interest, for all years are due and payable to the bureau April 30th of the year 
following the calendar year in which the circumstance occurs, except as provided in 
subsection 3 and section 6261; 
Sec. 14.  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. 15.  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, or the physical disability requirement of 
section 6251, 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 or meets 
the physical disability requirement of section 6251, subsection 1, paragraph A 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. 16.  36 MRSA §6262, as enacted by PL 1989, c. 534, Pt. C, §1, is amended to 
read: 
§6262.  Voluntary payment of deferred tax 
1.  Payments.  All payments of deferred taxes shall be made to the bureau. 
2.  Taxes.  Subject to subsection 3, all or part of the deferred taxes and accrued 
interest may at any time be paid to the bureau by: 
A.  The taxpayer or the spouse of the taxpayer; or 
B.  The next of kin of the taxpayer, heir at law of the taxpayer, child of the taxpayer 
or any person having or claiming a legal or equitable interest in the property. 
3.  Notice of payment.  A person listed in subsection 2, paragraph B, may make the 
payments only if no objection is made by the taxpayer within 30 days after the bureau 
deposits in the mail notice to the taxpayer of the fact that the payment has been tendered. 
4.  Payment application.  Any payment made under this section shall must be 
applied first against accrued interest and any remainder against the deferred taxes.  This 
payment does not affect the deferred-tax status of the property.  Unless otherwise 
provided by law, this payment does not give the person paying the taxes any interest in 
the property or any claim against the estate, in the absence of a valid agreement to the 
contrary. 
5.  Lien discharge.  When the deferred taxes and accrued interest are paid in full and 
the property is no longer subject to deferral, the bureau shall prepare and record in the 
county in which the property is located a lien discharge. 
Sec. 17.  36 MRSA §6263, sub-§1, as enacted by PL 1989, c. 534, Pt. C, §1, is 
amended to read: 
1.  Payment extension.  If the taxpayer who claimed homestead property tax deferral 
dies, or if a spouse who continued the deferral under section 6261 dies, the bureau may 
extend the time for payment of the deferred taxes and interest accruing with respect to the 
taxes becoming due and payable under section 6260, subsection 2, if: 
A.  The homestead property becomes property of an individual or individuals: 
(1)  By inheritance or devise; or 
(2)  If the individual or individuals are heirs or devisees in the course of 
settlement of the estate; 
B.  An individual or individuals commence occupancy of the property as a principal 
residence on or before August 15th of the calendar year following the calendar year 
of death; or 
C.  An individual or individuals make application to the bureau for an extension of 
time for payment of the deferred taxes and interest prior to August 15th of the 
calendar year following the calendar year of death. 
Sec. 18.  36 MRSA §6263, sub-§3, as enacted by PL 1989, c. 534, Pt. C, §1, is 
repealed. 
Sec. 19.  36 MRSA §6266, sub-§3, as enacted by PL 1989, c. 534, Pt. C, §1, is 
amended to read: 
3.  Payments credited.  All sums of money received by the bureau under this chapter 
as repayments of deferred property taxes including the interest accrued under section 
6255, subsection 3, shall must, upon receipt, be credited to the revolving account and 
shall must be available for the purposes of subsection 1. 
Sec. 20.  36 MRSA §6267, as enacted by PL 1993, c. 707, Pt. G, §10, is repealed. 
Sec. 21.  Application.  This Act applies to property taxes based on the status of 
property on or after April 1, 2018. 
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 is retired 
from gainful employment due to disability and to surviving spouses who are at least 60 
years of age or who are retired from gainful employment due to disability and provides 
that household income must be less than $40,000.  This limit is indexed for inflation in 
2019 and annually thereafter.  The bill also eliminates provisions requiring accrual of 
interest on deferred property taxes.