An Act To Provide Property Tax Deferral for Senior Citizens and People with Physical Disabilities
Maine Legislature, Session 129, LD 0529
Committee: Taxation
Sponsors: COOPER, SANBORN, MAXMIN
Amends: 36 MRSA §5403, 36 MRSA §6251, 36 MRSA §6252, 36 MRSA §6253, 36 MRSA §6261, 36 MRSA §6267, 36 MRSA §6268

Legislative Document
No. 529
H.P. 386
House of Representatives, January 31, 2019
An Act To Provide Property Tax Deferral for Senior Citizens and 
People with Physical Disabilities
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative COOPER of Yarmouth.
Cosponsored by Senator SANBORN, L. of Cumberland and
Representative: MAXMIN of Nobleboro.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §5403, sub-§§7 and 8, as enacted by PL 2017, c. 474, Pt. B, 
§24, are amended to read:
7.  Personal exemptions.  Beginning in 2018 and each year thereafter, by the dollar 
amounts contained in section 5126-A, subsection 1, except that for the purposes of this 
subsection, notwithstanding section 5402, subsection 1-B, the "cost-of-living adjustment" 
is the Chained Consumer Price Index for the 12-month period ending June 30th of the 
preceding calendar year divided by the Chained Consumer Price Index for the 12-month 
period ending June 30, 2017; and
8.  Personal exemption phase-out.  Beginning in 2018 and each year thereafter, by 
the dollar amount of the applicable amounts specified in section 5126-A, subsection 2, 
paragraphs A, B and C, except that for the purposes of this subsection, notwithstanding 
section 5402, subsection 1-B, the "cost-of-living adjustment" is the Chained Consumer 
Price Index for the 12-month period ending June 30th of the preceding calendar year 
divided by the Chained Consumer Price Index for the 12-month period ending June 30, 
2017.; and
Sec. 2.  36 MRSA §5403, sub-§9 is enacted to read:
9.  Property tax deferral limit.  Beginning in 2020 and each year thereafter, by the 
dollar amount of the income limitation amount in section 6251, 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Sec. 3.  36 MRSA §6251, sub-§1, as repealed and replaced by PL 1993, c. 395, 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 §6252, sub-§4 is enacted to read:
4.  Maximum deferral.  The total amount of taxes deferred under this chapter may 
not exceed 80% of the taxpayer's equity in the property.
Sec. 6.  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, of all the individuals together 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. 7.  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. 8.  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. 9.  36 MRSA §6267, as enacted by PL 1993, c. 707, Pt. G, §10, is repealed.
Sec. 10.  36 MRSA §6268 is enacted to read:
§6268.  Property Tax Deferral Revolving Account; sources; uses
1.  Revolving account.  This section establishes in the State Treasury the Property 
Tax Deferral Revolving Account, referred to in this section as "the deferral account," to 
be used by the bureau for the purpose of making payments to municipal tax collectors of 
property taxes deferred for tax years beginning on or after April 1, 2020, as required by 
section 6257.
2.  Finance Authority of Maine; loan.  The Finance Authority of Maine shall 
establish a loan program to ensure the availability of sufficient funds to cover the cost of 
reimbursement to municipalities under section 6257, subsection 1.  The Treasurer of State 
shall notify the Finance Authority of Maine when the Treasurer of State anticipates that 
funds in the deferral account are not sufficient to cover anticipated municipal 
reimbursement claims.  The Finance Authority of Maine shall transfer sufficient funds 
from the loan program to the deferral account to ensure that the funds in the deferral 
account are sufficient to cover anticipated claims.
3.  Advancement of funds.  If there are insufficient funds in the deferral account 
necessary to make payments under subsection 1 following transfers by the Finance 
Authority of Maine under subsection 2, the Treasurer of State shall advance funds to the 
bureau from time to time as necessary as an appropriation from the General Fund.
4.  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, must, upon receipt, be credited to the deferral account and must be 
available for the purposes of subsection 1.
5.  Appropriation request.  If, following transfers by the Finance Authority of 
Maine under subsection 2, there are insufficient funds in the deferral account to make the 
payments required by subsection 1, the assessor shall request an appropriation from the 
General Fund that together with the money in the deferral account will provide an amount 
sufficient to make the required payments.
6.  General Fund reimbursement.  When the bureau determines that sufficient 
funds are available in the deferral account, the bureau shall repay to the Finance 
Authority of Maine loan program and to the General Fund the amounts provided to the 
deferral account under subsections 2 and 3, plus accrued interest.
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 physical 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 2020 and annually thereafter.
This bill limits the total amount of property taxes that a taxpayer may defer to 80% of 
the taxpayer's equity in the property and requires the Finance Authority of Maine to 
establish a loan program to ensure adequate funding of reimbursements to municipalities.