An Act Repealing Tax Lien Foreclosure Requirements
Maine Legislature, Session 129, LD 0448
Committee: Taxation
Sponsors: GRATWICK, HYMANSON, CHIPMAN, PERRY, SCHNECK, TALBOT ROSS
Amends: 36 MRSA §683, 36 MRSA §942, 36 MRSA §943-C, 36 MRSA §1281

Legislative Document
No. 448
S.P. 126
In Senate, January 29, 2019
An Act Repealing Tax Lien Foreclosure Requirements
Reference to the Committee on Taxation suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator GRATWICK of Penobscot.
Cosponsored by Representative HYMANSON of York and
Senator: CHIPMAN of Cumberland, Representatives: PERRY of Calais, SCHNECK of 
Bangor, TALBOT ROSS of Portland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §683, sub-§1, as amended by PL 2017, c. 478, §1, 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 assessor's 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Sec. 2.  36 MRSA §942, 3rd ¶, as enacted by PL 2017, c. 478, §2, is repealed.
Sec. 3.  36 MRSA §943-C, as enacted by PL 2017, c. 478, §3, is repealed.
Sec. 4.  36 MRSA §1281, as amended by PL 2017, c. 478, §4, 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.
SUMMARY
This bill removes the provisions enacted in Public Law 2017, chapter 478 that 
established a preforeclosure process that municipalities must use in order to foreclose on 
homestead property for nonpayment of property tax if the owner is 65 years of age or 
older and has income and liquid assets below specified limits.