An Act To Protect the Elderly from Tax Lien Foreclosures
Maine Legislature, Session 128, LD 1629
Committee Amendment CA_A-SA_D_S551 (Senate)
Amends: 36 MRSA §683, 36 MRSA §942, 36 MRSA §943-C, 36 MRSA §1281

SENATE AMENDMENT "Q" to COMMITTEE AMENDMENT "A" to H.P. 
1124, L.D. 1629, Bill, "An Act To Protect the Elderly from Tax Lien Foreclosures" 
Amend the amendment by striking out all of sections 1 to 4 and inserting the 
following: 
1Sec. 1. 36 MRSA §683, sub-§1, as amended by PL 2009, c. 213, Pt. YYY, §1 
and affected by c. 652, Pt. A, §63, is further amended to read: 
1. Exemption amount. Except for assessments for special benefits, the just value of 
$10,000 of the homestead of a permanent resident of this State who has owned a 
homestead in this State for the preceding 12 months is exempt from taxation. 
Notwithstanding this subsection, a permanent resident of this State who loses ownership 
of a homestead in this State due to a tax lien foreclosure and subsequently regains 
ownership of the homestead from the municipality that foreclosed on the tax lien is 
deemed to have continuously owned the homestead and may not be determined ineligible 
for the exemption provided in this section due to the ownership of the homestead by the 
municipality. In determining the local assessed value of the exemption, the assessor shall 
multiply the amount of the exemption by the ratio of current just value upon which the 
assessment is based as furnished in the assessor1s annual return pursuant to section 383. 
If the title to the homestead is held by the applicant jointly or in common with others, the 
exemption may not exceed $10,000 of the just value of the homestead, but may be 
apportioned among the owners who reside on the property to the extent of their respective 
interests. A municipality responsible for administering the homestead exemption has no 
obligation to create separate accounts for each partial interest in a homestead owned 
jointly or in common. 
Sec. 2. 36 MRSA §942, as amended by PL 2009, c. 489, §§2 and 3, is further 
amended by inserting after the 2nd paragraph a new paragraph to read: 
For property that constitutes a homestead for which a property tax exemption is 
claimed under subchapter 4-B, the tax collector shall include with the written notice 
authorized under this section written notice to the person named on the tax lien mortgage 
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that that person may be eligible to file an application for tax abatement under section 841, 
subsection 2, indicating that the municipality, upon request, will assist the person in 
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requesting an abatement and provide information regarding the procedures for making 
SENA TE AMENDMENT 
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SENATE AMENDMENT" D '' to COMMITTEE AMENDMENT "A" to H.P. 1124, L.D. 1629 
such a request. The notice must also indicate that the person may seek assistance from 
the Department of Professional and Financial Regulation, Bureau of Consumer Credit 
Protection regarding options for finding an advisor who can help the person work with 
the municipality to avoid tax lien foreclosure and provide information regarding ways to 
contact the bureau. The Department of Professional and Financial Regulation, Bureau of 
Consumer Credit Protection, by July 15th annually, shall provide to a statewide 
organization representing municipalities information regarding assistance in avoiding tax 
lien foreclosure to assist municipalities in providing the information required in the 
notice. 
Sec. 3. 36 MRSA §943-C is enacted to read: 
§943-C. Sale of homesteads formerly owned by persons 65 years of age or older 
Notwithstanding any provision of law to the contrary, after the foreclosure process 
under sections 942 and 943 or sections 1281 and 1282 is completed and the right of 
redemption has expired, if a municipality chooses to sell property that immediately prior 
to foreclosure received a property tax exemption as a homestead under subchapter 4-B, 
the municipal officers or their designee shall notify the former owner or owners of the 
right to require the municipality to use the sale process under subsection 3 as long as the 
former owner or owners demonstrate that the property meets the requirements of 
subsection 1. The notice must be sent by first-class mail to the last known address of the 
former owner or owners. 
1. Subject property. Property is subject to the requirements of this section if: 
A. Immediately prior to foreclosure the property was owned by at least one person 
who, on the date the tax lien certificate was recorded, was 65 years of age or older 
and occupied the property as a homestead as defined in section 681, subsection 2; and 
B. The former owner or owners of the property demonstrate to the municipal officers 
or their designee that: 
(1) The income, as defined in section 5219-KK, subsection 1, paragraph D, of 
the former owner or owners of the property was less than $40,000, after medical 
expenses have been deducted, for the calendar year immediately preceding the 
calendar year in which the right of redemption expired: and 
(2) The value of liquid assets of the former owner or owners of the property is 
less than $50,000 in the case of a single individual or $75,000 in the case of 2 or 
more individuals. 
For the purposes of this paragraph, "liquid assets" means 
something of value available to an individual that can be converted to cash in 3 
months or less and includes bank accounts, certificates of deposit, money market 
or mutual funds, life insurance policies, stocks and bonds, lump-sum payments 
and inheritances and funds from a home equity conversion mortgage that are in 
the individual's possession whether they are in cash or have been converted to 
another form. 
The former owner or owners must provide documentation verifying the former 
owner's or owners' income and liquid assets. 
SENATE AMENDMENT 
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SENATEAMENDMENT" 0 toCOMMITTEEAMENDMENT"A"toH.P.1124,L.D.1629 
All applications or information submitted in support of an application under this 
subsection, files and communications relating to the application and the determination on 
the application are confidential records. Hearings and proceedings held pursuant to this 
subsection must be held in executive session. 
2. Notification; appeal. At least 90 days prior to listing property described in 
subsection 1 for sale, the municipal officers or their designee shall notify the former 
owner or owners, by first-class mail, of the former owner's or owners' right to require the 
sale process described in subsection 3. The municipal officers or their designee shall 
include with the notice an application form with instructions concerning application 
procedures and submission of information necessary for the municipality to determine 
whether the former owner or owners meet the conditions required under subsection 1. 
The former owner or owners must be allowed at least 30 days from the date the notice is 
mailed to submit the required application form and information. The municipal officers or 
their designee, within 30 days after receiving the required form and information, shall 
notify the former owner or owners whether the former owner or owners have been 
determined to be eligible for the sale process described in subsection 3 and inform the 
former owner or owners of the right to appeal pursuant to the Maine Rules of Civil 
Procedure, Rule 80B. The State Tax Assessor shall prepare application forms, notices 
and instructions that must be used by municipalities to inform former owners of their 
right to apply for the sale process provided under subsection 3. 
3. Sale process requirements. If a municipality determines that the former owner 
or owners meet the conditions specified under subsection 1, the municipal officers or 
their designee shall: 
A. List the property for sale with a real estate broker licensed under Title 32, chapter 
who does not hold an elected or appointed office in the municipality and is not 
employed by the municipality; 
B. 
Sell the property at fair market value or the price at which the property is 
anticipated by the real estate broker to sell within 6 months after listing; and 
C. Pay to the former owner or owners any proceeds from the sale in excess of: 
(1) The sum of all taxes owed on the property; 
(2) Property taxes that would have been assessed on the property during the 
period following foreclosure when the property is owned by the municipality; 
(3) All accrued interest; 
(4) Fees, including real estate broker's fees; and 
(5) Any other expenses incurred by the municipality in selling or maintaining the 
property, including, but not limited to, reasonable attorney's fees. 
4. Effect of inability to contract or sell property. If, after attempting to contract 
with at least 3 real estate brokers who meet the requirements of subsection 3, paragraph 
A, a municipality is unable to contract with a real estate broker for the sale of the property 
as described in subsection 3 or the broker cannot sell the property within 6 months after 
listing, the municipality may retain, sell or dispose of the property in the same manner as 
other property acquired through the tax lien foreclosure process. 
SENATE AMENDMENT 
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SENATE AMENDMENT "P "to COMMITTEE AMENDMENT "A" to H.P. 1124, L.D. 1629 
5. Property in the unorganized territory. With regard to the sale of property 
acquired by the State through tax lien foreclosure in the unorganized territory, the State 
Tax Assessor has the obligations of a municipality under this section. 
Sec. 4. 36 MRSA §1281, as amended by PL 1991, c. 846, §12, is further amended 
to read: 
§1281. Payment of taxes; delinquent taxes; publication; certificate filed in registry 
Taxes on real estate mentioned in section 1602, including supplementary taxes 
assessed under section 1331, are delinquent on the 15th day of January next following the 
date of assessment. Annually, on or before February 1st, the State Tax Assessor shall 
send by mail to the last known address of each owner of such real estate upon which 
taxes remain unpaid a notice in writing, containing a description of the real estate 
assessed and the amount of unpaid taxes and interest, and alleging that a lien is claimed 
on that real estate for payment of those taxes, interests and costs, with a demand that 
payment be made by the next February 21st. For property that constitutes a homestead 
for which a property tax exemption is claimed under chapter 105, subchapter 4-B, the 
State Tax Assessor shall include in the written notice written notice to the owner named 
on the tax lien mortgage that that owner may be eligible to file an application for tax 
abatement under section 841, subsection 2, indicating that the State Tax Assessor, upon 
request, will assist the owner in requesting an abatement and provide information 
regarding the procedures for making such a request. The notice must also indicate that 
the owner may seek assistance from the Department of Professional and Financial 
Regulation, Bureau of Consumer Credit Protection regarding options for finding an 
advisor who can help the owner work with the · State Tax Assessor to avoid tax lien 
foreclosure and provide information regarding ways to contact the bureau. 
The 
Department of Professional and Financial Regulation, Bureau of Consumer Credit 
Protection, by July 15th annually, shall provide to a statewide organization representing 
municipalities and to the State Tax Assessor information regarding assistance in avoiding 
tax lien foreclosure to assist municipalities and the State Tax Assessor in providing the 
information required in the notice. If the owners of any such real estate are unknown, 
instead of sending the notices by mail, the assessor shall cause the information required in 
this section on that real estate to be advertised in the state paper and in a newspaper, if 
any, of general circulation in the county in which the real estate lies. Such a statement or 
advertisement is sufficient legal notice of delinquent taxes. If those taxes and interest to 
date of payment and costs are not paid by February 21st, the State Tax Assessor shall 
record by March 15th, in the registry of deeds of the county or registry district where the 
real estate lies, a certificate signed by the assessor, setting forth the name or names of the 
owners according to the last state valuation, or the valuation established in accordance 
with section 1331; the description of the real estate assessed as contained in the last state 
valuation, or the valuation established in accordance with section 1331; the amount of 
unpaid taxes and interest; the amount of costs; and a statement that demand for payment 
of those taxes has been made, and that those taxes, interest and costs remain unpaid. The 
costs charged by the register of deeds for the filing may not exceed the fees established 
by Title 33, section 751. 
Sec. 5. Appropriations and allocations. 
The following appropriations and 
allocations are made. 
SENA TE AMENDMENT 
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SENATE AMENDMENT'.' 0" to COMMITTEE AMENDMENT "A" to H.P. 1124, L.D. 1629 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Revenue Services, Bureau of 0002 
Initiative: Provides funding to reimburse municipalities for 90% of the cost of selling 
property that has been acquired through tax lien foreclosure. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
2017-18 
$0 
$0 
2018-19 
$2,250 
$2,250 
Amend the amendment by relettering or renumbering any nonconsecutive Part letter 
or section number to read consecutively. 
SUMMARY 
This amendment amends Committee Amendment "A" to: 
1. Change the timing of the notice required in Committee Amendment 
11A
regarding 
a property owner's right to apply for an abatement and the availability of assistance so 
that the notice need not be issued separately and instead must be included with other 
notice to that property owner; 
2. Specify that the income conditions established in Committee Amendment 
11A
apply after medical expenses have been deducted; 
3. Specify that the procedure established for the sale by municipalities of homesteads 
acquired through tax lien foreclosure applies to properties that had previously received a 
homestead exemption, rather than to properties that had merely been eligible for the 
exemption; 
4. Require that municipal notice to a former owner of the right to require the sale 
procedure be sent by first-class mail to the last known address of the former owner; 
5. Require documentation from the former owner verifying income and assets; 
6. Designate as confidential applications for the procedure for the municipal sale of 
homesteads acquired through tax lien foreclosure, including supporting information, files, 
communications and determinations of such applications, and require that hearings on 
such applications be held in executive session; 
7. Specify that the real estate broker with whom the property is listed may not hold 
an elected or appointed office in the relevant municipality and may not be employed by 
that municipality; 
8. Require the municipality to attempt to contract with at least 3 such real estate 
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brokers for the sale of the property before retaining, selling or disposing of the property 
through the tax lien foreclosure process; 
9. Specifically include reasonable attorney's fees as part of the amount retained by 
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the municipality after sale of the property; and 
SENATE AMENDMENT 
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SENATE AMENDMENTf(D "to COMMITTEE AMENDMENT "A" to H.P. 1124, L.D. 1629 
10. 
Provide that a permanent resident of this State who loses ownership of a 
homestead in this State due to a tax lien foreclosure and subsequently regains ownership 
of the homestead from the municipality that foreclosed on the tax lien continues to remain 
eligible for the homestead property tax exemption. 
FISCAL NOTE REQUIRED 
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SPONSOREDBY:i 
~~_:,/ 
(Senator DOW) 
COUNTY: Lincoln 
SENA TE AMENDMENT 
Approved: 09/13/18 feac 
LD 1629 
LR 2290(16) 
An Act To Protect the Elderly from Tax Lien Foreclosures 
Fiscal Note for Senate Amendme:nt,!
11l)i,'to Committee Amendment "A" 
Sponsor: Sen. Dow of Lincoln 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
General Fund 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
Reduces State Mandate Costs 
Still a Funded State Mandate 
FY 2017-18 
$0 
$0 
FY 2018-19 
($823,005) 
($823,005) 
Projections 
FY2019-20 
($823,005) 
($823,005) 
Projections 
FY 2020-21 
($823,005) 
($823,005) 
This amendment removes the requirement for a notice to the taxpayer of potential eligibility to file for tax abatement. 
As the mandate for a separate notice is removed, the costs anticipated from increased abatement activity originating 
from the notification would not be considered mandated costs and the General Fund appropriation is reduced by 
$823,005 beginning in fiscal year 2018-19. The mandated requirements to engage a real estate broker, sell the 
property at fair market value or the price anticipated by the broker and remit excess proceeds to the taxpayer remain in 
the bill. As amended, the bill still contains an ongoing General Fund appropriation of $2,250 beginning in fiscal year 
2018-19 to cover these costs. This amount represents 90% of the estimated net cost to municipalities not recovered 
through the sale of the property. 
T.R2?.90(16) - Fi.~r.nl NntA - P:HrA 1 of 1