An Act To Help Seniors and Certain Persons with Disabilities Remain in Their Homes by Providing for the Deferral of Property Taxes
Maine Legislature, Session 130, LD 1638
Committee: Taxation
Sponsors: BAILEY, FAY, CLAXTON, CURRY, HICKMAN, MAXMIN, RAFFERTY
Amends: 36 MRSA §5219-K, 36 MRSA §6250, 36 MRSA §6251, 36 MRSA §6252, 36 MRSA §6253, 36 MRSA §6254, 36 MRSA §6255, 36 MRSA §6257, 36 MRSA §6258, 36 MRSA §6261, 36 MRSA §6262, 36 MRSA §6266, 36 MRSA §6267

Legislative Document
No. 1638
S.P. 522
In Senate, May 5, 2021
An Act To Help Seniors and Certain Persons with Disabilities 
Remain in Their Homes by Providing for the Deferral of Property 
Taxes
Received by the Secretary of the Senate on May 3, 2021.  Referred to the Committee on 
Taxation pursuant to Joint Rule 308.2 and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator BAILEY of York.
Cosponsored by Representative FAY of Raymond and
Senators: CLAXTON of Androscoggin, CURRY of Waldo, HICKMAN of Kennebec, 
MAXMIN of Lincoln, RAFFERTY of York.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §5219-KK, sub-§1, ¶A-1, as enacted by PL 2017, c. 474, Pt. 
B, §13, is amended to read:
A-1.  For tax years beginning on or after January 1, 2018, "benefit base" means property 
taxes paid by a resident individual during the tax year on the resident individual's 
homestead in this State or rent constituting property taxes paid by the resident 
individual or the bureau pursuant to chapter 908 on behalf of a resident individual 
during the tax year on a homestead in the State not exceeding the following amounts:
(1)  For persons filing as single individuals, $2,050;
(2)  For persons filing as heads of households that can claim the federal child tax 
credit pursuant to the Code, Section 24 for no more than one qualifying child or 
dependent or for persons filing joint returns, $2,650; and
(3)  For persons filing as heads of households that can claim the federal child tax 
credit pursuant to the Code, Section 24 for more than one qualifying child or 
dependent or for persons filing joint returns that can claim the federal child tax 
credit pursuant to the Code, Section 24 for at least one qualifying child or 
dependent, $3,250.
Sec. 2.  36 MRSA §6250, sub-§3, as enacted by PL 1989, c. 534, Pt. C, §1, is 
amended to read:
3.  Homestead.  "Homestead" means the owner-occupied principal dwelling, either 
real or personal property, owned by the taxpayer and up to 10 contiguous acres upon which 
it is located.  If the homestead is located in a multi-unit building, the homestead is the 
portion of the building actually used as the principal dwelling and its percentage of the 
value of the common elements and of the value of the tax lot upon which it is built.  The 
percentage is the value of the unit consisting of the homestead compared to the total value 
of the building exclusive of the common elements, if any. "Homestead" includes the 
taxpayer-occupied principal dwelling and up to 10 contiguous acres upon which it is 
located that is held in a revocable living trust for the benefit of the taxpayer.  "Homestead" 
does not include an owner-occupied principal dwelling located on land not owned by the 
taxpayer.
Sec. 3.  36 MRSA §6250, sub-§3-A is enacted to read:
3-A.  Liquid asset.  "Liquid asset" means something of value available to an individual 
that can be converted to cash in 3 months or less and includes:
A.  Bank accounts;
B.  Certificates of deposit;
C.  Money market and mutual funds;
D.  Life insurance policies;
E.  Stocks and bonds; and
F.  Lump-sum payments and inheritances.
Sec. 4.  36 MRSA §6250, sub-§3-B is enacted to read:
3-B.  Municipality.  "Municipality" means a city, town, plantation or the unorganized 
territory.
Sec. 5.  36 MRSA §6251, as amended by PL 1993, c. 395, §31, is further amended 
to read:
§6251.  Deferral of tax on homestead; joint election; age requirement; filing claim
1.  Filing claim.  Subject to section 6252, an individual or 2 or more individuals jointly 
a taxpayer may elect apply to defer the property taxes on their the taxpayer's 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 individual, in the case of 2 or more individuals taxpayer 
filing a claim jointly, is 65 years of age or older or is unable to continue 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 taxpayer has 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.;
C.  The taxpayer, if an individual, has liquid assets of less than $50,000 or, in the case 
of 2 or more individuals filing a claim jointly, all the individuals together have liquid 
assets of less than $75,000; and
D.  The taxpayer's homestead receives a homestead exemption under chapter 105, 
subchapter 4-B.
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 must be filed on a form approved by the State Tax Assessor and must 
include all information requested by the State Tax Assessor, including without limitation 
the taxpayer's and the taxpayer's direct heirs' contact information. Income and liquid assets 
of all individual owners of a homestead must be included in an application 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.
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 or the taxpayer withdraws from 
the deferral of future property taxes under this chapter by notifying the bureau as 
provided in section 6258.
3.  Guardian compliance.  If a guardian or, conservator or agent under a power of 
attorney or pursuant to a protective arrangement or any other lawful order has been 
appointed for an individual a taxpayer otherwise qualified to obtain deferral of taxes under 
this chapter, the guardian or, conservator or agent may act for that individual taxpayer in 
complying with this chapter.
4.  Trustee compliance.  If a A trustee of an a revocable inter vivos trust which, if that 
trust was created by and is revocable by an individual, a taxpayer who is both the trustor 
and a beneficiary of the trust and who is otherwise qualified to obtain a deferral of taxes 
under this chapter, owns the fee simple estate under a recorded instrument of sale, the 
trustee may act for the individual taxpayer in complying with this chapter.
5.  Spouse not required to claim.  Nothing in this section may be construed to require 
a spouse of an individual to file a claim jointly with the individual even though the spouse 
may be eligible to claim the deferral jointly with the individual.
6.  Appeal.  Any person taxpayer aggrieved by the denial of a claim for deferral of 
homestead property taxes or disqualification from deferral of homestead property taxes 
may file an appeal of the State Tax Assessor's determination, within 30 days of notification 
of denial or disqualification by the State Tax Assessor, with the State Board of Property 
Tax Review as provided in chapter 101, subchapter II-A 2-A.  When the State Tax Assessor 
disagrees with the municipal valuation of a property subject to deferral, the abatement and 
appeals process under chapter 105, subchapter 8 applies.
Sec. 6.  36 MRSA §6252, sub-§2, as enacted by PL 1989, c. 534, Pt. C, §1, is 
amended to read:
2.  Fee simple estate.  The person individual claiming the a deferral must, solely or 
together with the person's individual's spouse, own the fee simple estate or be purchasing 
the fee simple estate under a recorded instrument of sale, or 2 or more persons individuals 
must together own or be purchasing the fee simple estate with rights of survivorship under 
a recorded instrument of sale if all owners live in the homestead and if all owners apply for 
the deferral jointly.
Sec. 7.  36 MRSA §6252, sub-§4 is enacted to read:
4.  No duplicate deferral.  The property is not receiving a deferral of taxes under 
chapter 908-A.
Sec. 8.  36 MRSA §6252, sub-§5 is enacted to read:
5.  No municipal lien.  The property does not have an existing municipal lien against 
it.
Sec. 9.  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 information that establish establishes that 
the household liquid assets and the 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, was are less than $32,000 the limits set by section 6251, 
subsection 1 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 taxpayer making the claim to 
the effect that the statements contained in the claim are true.
Sec. 10.  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 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 taxpayer, or the owner's taxpayer'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 taxpayer, or the owner's taxpayer'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 
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. 11.  36 MRSA §6254, sub-§4 is enacted to read:
4.  Dangerous buildings.  The State Tax Assessor may request that the municipal 
officers, in the case of a municipality, or the county commissioners, in the case of the 
unorganized territory in their county, investigate any homestead subject to deferral and 
make determinations whether the homestead is a dangerous building pursuant to Title 17, 
chapter 91, subchapter 4. If eligible expenses pursuant to Title 17, section 2853 are incurred 
by a municipality or the county in the case of the unorganized territory, the State Tax 
Assessor shall reimburse those eligible expenses from funds in the Senior Property Tax 
Deferral Revolving Account under section 6266.
Sec. 12.  36 MRSA §6255, sub-§3, as enacted by PL 1989, c. 534, Pt. C, §1, is 
amended to read:
3.  Interest.  Interest shall accrue accrues on the actual amount of taxes payments 
advanced to the municipality for the tax-deferred property at the rate of 6% per annum 
pursuant to section 186.
Sec. 13.  36 MRSA §6257, as amended by PL 1991, c. 528, Pt. DD, §1 and affected 
by Pt. RRR and amended by c. 591, Pt. DD, §1 and c. 622, Pt. CC, §1, is further amended 
to read:
§6257.  Municipal tax collector to receive Payment of amount equivalent to deferred 
taxes from by the State
1.  Payment of deferred taxes.  Within 30 days of the receipt of information from a 
municipal tax collector concerning the amount of deferred property taxes in the respective 
municipality, the State Tax Assessor shall certify that amount to the Treasurer of the State 
who shall make payment to the municipality on or before the 15th day of the following 
month.  Payments made for deferred property taxes in the unorganized territory must be 
made to the Unorganized Territory Education and Services Fund established in section 
1605.
1-A.  Prorated payment of deferred taxes.  The State Tax Assessor is authorized to 
prorate payments to municipalities for claims filed pursuant to this chapter if the amount 
available in the Senior Property Tax Deferral Revolving Account established in section 
6266 in any fiscal year is insufficient to make full payments to all municipalities.  If the 
applicant for deferred taxes can not pay the difference due to the municipality, the 
municipality that does not receive the full amount of deferred property taxes may cause a 
tax lien certificate to be filed in the county registry of deeds for the amount not received.
1-B.  Reimbursement to taxpayers.  The State Tax Assessor is authorized to 
reimburse taxpayers who qualified under this chapter and who have paid property taxes 
that would have otherwise been deferred but for the prorating of benefits as allowed in 
subsection 1‑A.
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. 14.  36 MRSA §6258, sub-§1, ¶D, as enacted by PL 1989, c. 534, Pt. C, §1, 
is amended to read:
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 and the right of the taxpayer to withdraw from the deferral 
of future property taxes under this chapter by notifying the bureau by any method that 
the bureau may prescribe.
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 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, sub-§2, as enacted by PL 1989, c. 534, Pt. C, §1, is 
amended to read:
2.  Taxes and interest.  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.; or
C.  Any other person or organization making a payment as a gift to the taxpayer.
Sec. 17.  36 MRSA §6262, sub-§3, as enacted by PL 1989, c. 534, Pt. C, §1, is 
amended to read:
3.  Notice of payment.  A person listed in subsection 2, paragraph B, or C 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.
Sec. 18.  36 MRSA §6266, as enacted by PL 1989, c. 534, Pt. C, §1, is amended to 
read:
§6266.  Senior Property Tax Deferral Revolving Account; sources; uses
1.  Revolving account.  This section establishes in the State Treasury the Senior 
Property Tax Deferral Revolving Account, referred to in this section as "the revolving 
account," to be used by the bureau for the purpose of making the payments to municipal 
tax collectors and to the Unorganized Territory Education and Services Fund, established 
in section 1605, of property taxes deferred for tax years beginning on or after April 1, 1990 
2022, as required by section 6257, reimbursements, as required under section 6254, 
subsection 4, and repayment of transfers pursuant to subsection 5.
1-A.  Transfer from Property Tax Relief Fund for Maine Residents.  If there is not 
sufficient money in the revolving account to make the payments required under subsection 
1, the State Tax Assessor shall notify the Treasurer of State of the amount necessary to 
make the required payments and the Treasurer of State shall transfer that amount from the 
Property Tax Relief Fund for Maine Residents, established in Title 5, section 1518-A, 
subsection 1, to the revolving account.
2.  Advancement of funds.  The funds necessary to make payments under subsection 
shall must be advanced to the bureau from time to time as necessary by the Treasurer of 
State as an appropriation from the General Fund a transfer under subsection 1-A and, if 
necessary, under subsection 4.
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, upon receipt, must be credited to the revolving account and shall must 
be available for the purposes of subsection 1 and subsection 5.
4.  Appropriation Additional transfer request.  If, following the transfer by the 
Treasurer of State required by subsection 1-A, there is not sufficient money in the revolving 
account to make the payments required by subsection 1, the State Tax Assessor shall 
request an appropriation a transfer from the General Housing Opportunities for Maine 
Fund, established in Title 30-A, section 4853, which together with the money in the 
revolving account will provide an amount sufficient to make the required payments.
5.  General Fund reimbursement Reimbursement of funds.  When the bureau 
determines that funds in sufficient amounts are available in the revolving account, the 
bureau shall repay to the General Fund Repayment of the amounts advanced as 
appropriations under transferred to the revolving account pursuant to subsections 1-A and 
must be done in accordance with this subsection 2, plus accrued interest.
A.  When the bureau determines that funds in sufficient amounts are available in the 
revolving account, the bureau shall repay to the Housing Opportunities for Maine Fund, 
established in Title 30-A, section 4853, the amounts advanced as transfers under 
subsection 1-A, plus accrued interest.
B.  When the bureau determines that funds in sufficient amounts are available in the 
revolving account after the transfer to the Housing Opportunities for Maine Fund, 
established in Title 30-A, section 4853, pursuant to paragraph A, the bureau shall repay 
to the Property Tax Relief Fund for Maine Residents, established in Title 5, section 
1518-A, subsection 1, the amounts advanced as transfers under subsection 4, plus 
accrued interest.
Sec. 19.  36 MRSA §6267, as enacted by PL 1993, c. 707, Pt. G, §10, is repealed.
Sec. 20.  Application.  This Act applies to property taxes based on the status of 
property on or after April 1, 2022.
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 unable to 
continue employment due to disability and to surviving spouses who are unable to continue 
employment due to disability and provides that income must be less than $40,000.  The bill 
also changes the rate of accrual of interest on deferred property taxes from 6% to the prime 
rate published in the Wall Street Journal rounded up to the next whole percent minus one 
percentage point.  The bill adds a maximum liquid asset standard for eligibility of property 
owners and provides that property may not be subject to deferral under both the state 
deferral program and a municipal deferral program.  The bill also facilitates the 
administration of the deferral of property taxes for seniors and certain persons with 
disabilities, including expanding the authority of guardians to include an agent under a 
power of attorney or pursuant to a protective arrangement or any other lawful order.
The bill requires transfers from the Property Tax Relief Fund for Maine Residents in 
case there are not sufficient funds to pay for the property tax deferral program; current law 
requires transfers from the General Fund.  In the event that there are not sufficient funds in 
the Property Tax Relief Fund for Maine Residents, the bill requires that additional transfers 
be made from the Housing Opportunities for Maine Fund to cover the shortfall.  This bill 
requires repayment of those transfers, with interest, first to the Housing Opportunities for 
Maine Fund and then to the Property Tax Relief Fund when there are sufficient funds 
available for those reimbursements.