130th MAINE LEGISLATURE
FIRST SPECIAL SESSION-2021
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.
Printed on recycled paper
 1 Be it enacted by the People of the State of Maine as follows:
2 Sec. 1. 36 MRSA §5219-KK, sub-§1, ¶A-1, as enacted by PL 2017, c. 474, Pt.
3 B, §13, is amended to read:
4 A-1. For tax years beginning on or after January 1, 2018, "benefit base" means property
5 taxes paid by a resident individual during the tax year on the resident individual's
6 homestead in this State or rent constituting property taxes paid by the resident
7 individual or the bureau pursuant to chapter 908 on behalf of a resident individual
8 during the tax year on a homestead in the State not exceeding the following amounts:
9 (1) For persons filing as single individuals, $2,050;
10 (2) For persons filing as heads of households that can claim the federal child tax
11 credit pursuant to the Code, Section 24 for no more than one qualifying child or
12 dependent or for persons filing joint returns, $2,650; and
13 (3) For persons filing as heads of households that can claim the federal child tax
14 credit pursuant to the Code, Section 24 for more than one qualifying child or
15 dependent or for persons filing joint returns that can claim the federal child tax
16 credit pursuant to the Code, Section 24 for at least one qualifying child or
17 dependent, $3,250.
18 Sec. 2. 36 MRSA §6250, sub-§3, as enacted by PL 1989, c. 534, Pt. C, §1, is
19 amended to read:
20 3. Homestead. "Homestead" means the owner-occupied principal dwelling, either
21 real or personal property, owned by the taxpayer and up to 10 contiguous acres upon which
22 it is located. If the homestead is located in a multi-unit building, the homestead is the
23 portion of the building actually used as the principal dwelling and its percentage of the
24 value of the common elements and of the value of the tax lot upon which it is built. The
25 percentage is the value of the unit consisting of the homestead compared to the total value
26 of the building exclusive of the common elements, if any. "Homestead" includes the
27 taxpayer-occupied principal dwelling and up to 10 contiguous acres upon which it is
28 located that is held in a revocable living trust for the benefit of the taxpayer. "Homestead"
29 does not include an owner-occupied principal dwelling located on land not owned by the
30 taxpayer.
31 Sec. 3. 36 MRSA §6250, sub-§3-A is enacted to read:
32 3-A. Liquid asset. "Liquid asset" means something of value available to an individual
33 that can be converted to cash in 3 months or less and includes:
34 A. Bank accounts;
35 B. Certificates of deposit;
36 C. Money market and mutual funds;
37 D. Life insurance policies;
38 E. Stocks and bonds; and
39 F. Lump-sum payments and inheritances.
40 Sec. 4. 36 MRSA §6250, sub-§3-B is enacted to read:
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 1 3-B. Municipality. "Municipality" means a city, town, plantation or the unorganized
2 territory.
3 Sec. 5. 36 MRSA §6251, as amended by PL 1993, c. 395, §31, is further amended
4 to read:
5 §6251. Deferral of tax on homestead; joint election; age requirement; filing claim
6 1. Filing claim. Subject to section 6252, an individual or 2 or more individuals jointly
7 a taxpayer may elect apply to defer the property taxes on their the taxpayer's homestead by
8 filing a claim for deferral with the municipal assessor after January 1st but no later than
9 April 1st of the first year in which deferral is claimed if:
10 A. The individual or each individual, in the case of 2 or more individuals taxpayer
11 filing a claim jointly, is 65 years of age or older or is unable to continue employment
12 by reason of physical disability on April 1st of the year in which the claim is filed; and
13 B. The individual or, in the case of 2 or more individuals filing a claim jointly, all the
14 individuals together have household taxpayer has income, as defined in section 6201
15 5219-KK, subsection 7 1, paragraph D, of less than $32,000 $40,000 for the calendar
16 year immediately preceding the calendar year in which the claim is filed.;
17 C. The taxpayer, if an individual, has liquid assets of less than $50,000 or, in the case
18 of 2 or more individuals filing a claim jointly, all the individuals together have liquid
19 assets of less than $75,000; and
20 D. The taxpayer's homestead receives a homestead exemption under chapter 105,
21 subchapter 4-B.
22 The municipal assessor shall forward each claim filed under this subsection to the bureau
23 within 30 days of receipt and the bureau shall determine if the property is eligible for
24 deferral. Claims must be filed on a form approved by the State Tax Assessor and must
25 include all information requested by the State Tax Assessor, including without limitation
26 the taxpayer's and the taxpayer's direct heirs' contact information. Income and liquid assets
27 of all individual owners of a homestead must be included in an application for deferral.
28 Claims from new applicants may not be filed pursuant to this chapter prior to January 1,
29 1994. For purposes of this section, "new applicants" means any person or persons that have
30 not filed claims prior to April 1, 1991.
31 2. Property tax deferral. When the If a taxpayer elects is determined to be eligible
32 to defer property taxes for any year by filing a claim for deferral under subsection 1, it shall
33 have has the effect of:
34 A. Deferring the payment of the property taxes levied on the homestead for the
35 municipal fiscal year beginning on or after April 1st of that year;
36 B. Continuing deferral of the payment by the taxpayer of any property taxes deferred
37 under this chapter for previous years that have not become delinquent under section
38 6260; and
39 C. Continuing the deferral of the payment by the taxpayer of any future property taxes
40 for as long as the provisions of section 6252 are met or the taxpayer withdraws from
41 the deferral of future property taxes under this chapter by notifying the bureau as
42 provided in section 6258.
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 1 3. Guardian compliance. If a guardian or, conservator or agent under a power of
2 attorney or pursuant to a protective arrangement or any other lawful order has been
3 appointed for an individual a taxpayer otherwise qualified to obtain deferral of taxes under
4 this chapter, the guardian or, conservator or agent may act for that individual taxpayer in
5 complying with this chapter.
6 4. Trustee compliance. If a A trustee of an a revocable inter vivos trust which, if that
7 trust was created by and is revocable by an individual, a taxpayer who is both the trustor
8 and a beneficiary of the trust and who is otherwise qualified to obtain a deferral of taxes
9 under this chapter, owns the fee simple estate under a recorded instrument of sale, the
10 trustee may act for the individual taxpayer in complying with this chapter.
11 5. Spouse not required to claim. Nothing in this section may be construed to require
12 a spouse of an individual to file a claim jointly with the individual even though the spouse
13 may be eligible to claim the deferral jointly with the individual.
14 6. Appeal. Any person taxpayer aggrieved by the denial of a claim for deferral of
15 homestead property taxes or disqualification from deferral of homestead property taxes
16 may file an appeal of the State Tax Assessor's determination, within 30 days of notification
17 of denial or disqualification by the State Tax Assessor, with the State Board of Property
18 Tax Review as provided in chapter 101, subchapter II-A 2-A. When the State Tax Assessor
19 disagrees with the municipal valuation of a property subject to deferral, the abatement and
20 appeals process under chapter 105, subchapter 8 applies.
21 Sec. 6. 36 MRSA §6252, sub-§2, as enacted by PL 1989, c. 534, Pt. C, §1, is
22 amended to read:
23 2. Fee simple estate. The person individual claiming the a deferral must, solely or
24 together with the person's individual's spouse, own the fee simple estate or be purchasing
25 the fee simple estate under a recorded instrument of sale, or 2 or more persons individuals
26 must together own or be purchasing the fee simple estate with rights of survivorship under
27 a recorded instrument of sale if all owners live in the homestead and if all owners apply for
28 the deferral jointly.
29 Sec. 7. 36 MRSA §6252, sub-§4 is enacted to read:
30 4. No duplicate deferral. The property is not receiving a deferral of taxes under
31 chapter 908-A.
32 Sec. 8. 36 MRSA §6252, sub-§5 is enacted to read:
33 5. No municipal lien. The property does not have an existing municipal lien against
34 it.
35 Sec. 9. 36 MRSA §6253, as enacted by PL 1989, c. 534, Pt. C, §1, is amended to
36 read:
37 §6253. Claim forms; contents
38 1. Administration. A taxpayer's claim for deferral under this chapter shall must be in
39 writing on a form supplied by the bureau and shall must:
40 A. Describe the homestead;
41 B. Recite facts Provide information establishing the eligibility for the deferral under
42 the provisions of this chapter, including facts information that establish establishes that
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43
1 the household liquid assets and the income, as defined in section 6201 5219-KK,
44
2 subsection 7 1, paragraph D, of the individual, or, in the case of 2 or more individuals
45
3 claiming the deferral jointly, was are less than $32,000 the limits set by section 6251,
46
4 subsection 1 for the calendar year immediately preceding the calendar year in which
47
5 the claim is filed; and
6 C. Have attached Contain any documentary proof information required by the bureau
7 to show that the requirements of section 6252 have been met.
8 2. Statement verification. There shall be annexed to the The claim must contain a
9 statement verified by a written declaration of the applicant taxpayer making the claim to
10 the effect that the statements contained in the claim are true.
11 Sec. 10. 36 MRSA §6254, sub-§1, as amended by PL 2007, c. 695, Pt. A, §45, is
12 further amended to read:
13 1. Lien. The lien provided in section 552 must continue for purposes of protecting the
14 State's deferred tax interest in tax deferred property. When it is determined that one of the
15 events set out in section 6259 has occurred and that a property is no longer eligible for
16 property tax deferral under this chapter, the State Tax Assessor shall send notice by
17 certified mail to the owner taxpayer, or the owner's taxpayer's heirs or devisees, listing the
18 total amount of deferred property taxes, including accrued interest and costs of all the years
19 and demanding payment on or before April 30th of the year following the tax year in which
20 the circumstances causing withdrawal from the provisions of this chapter occur.
21 When the circumstances listed in section 6259, subsection 4 occur, the amount of deferred
22 taxes is due and payable 5 days before the date of removal of the property from the State.
23 If the deferred tax liability of a property has not been satisfied by the April 30th demand
24 date, the State Tax Assessor shall, within 30 days, record in the registry of deeds in the
25 county where the real estate is located a tax lien certificate signed by the State Tax Assessor
26 or bearing the assessor's facsimile signature, setting forth the total amount of deferred tax
27 liability, a description of the real estate on which the tax was deferred and an allegation
28 that a tax lien is claimed on the real estate to secure payment of the tax, that a demand for
29 payment of the tax has been made in accordance with this section and that the tax remains
30 unpaid.
31 At the time of the recording of the tax lien certificate in the registry of deeds, the State Tax
32 Assessor shall send by certified mail, return receipt requested, to each record holder of a
33 mortgage on the real estate, to the holder's last known address, a true copy of the tax lien
34 certificate. The cost to be paid by the property owner taxpayer, or the owner's taxpayer's
35 heirs or devisees, is the sum of the fees for recording and discharging of the lien as
36 established by Title 33, section 751, plus $13. Upon redemption, the State Tax Assessor
37 shall prepare and record a discharge of the tax lien mortgage. The lien described in section
38 552 is the basis of this tax lien mortgage procedure.
39 The filing of the tax lien certificate, provided for in this section, in the registry of deeds
40 creates a mortgage on the real estate to the State and has priority over all other mortgages,
41 liens, attachments and encumbrances of any nature and gives to the State all rights usually
42 instant to a mortgage, except that the mortgagee does not have any right of possession of
43 the real estate until the right of redemption expires.
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 1 Payments accepted during the redemption period may not interrupt or extend the
2 redemption period or in any way affect the foreclosure procedures.
3 Sec. 11. 36 MRSA §6254, sub-§4 is enacted to read:
4 4. Dangerous buildings. The State Tax Assessor may request that the municipal
5 officers, in the case of a municipality, or the county commissioners, in the case of the
6 unorganized territory in their county, investigate any homestead subject to deferral and
7 make determinations whether the homestead is a dangerous building pursuant to Title 17,
8 chapter 91, subchapter 4. If eligible expenses pursuant to Title 17, section 2853 are incurred
9 by a municipality or the county in the case of the unorganized territory, the State Tax
10 Assessor shall reimburse those eligible expenses from funds in the Senior Property Tax
11 Deferral Revolving Account under section 6266.
12 Sec. 12. 36 MRSA §6255, sub-§3, as enacted by PL 1989, c. 534, Pt. C, §1, is
13 amended to read:
14 3. Interest. Interest shall accrue accrues on the actual amount of taxes payments
15 advanced to the municipality for the tax-deferred property at the rate of 6% per annum
16 pursuant to section 186.
17 Sec. 13. 36 MRSA §6257, as amended by PL 1991, c. 528, Pt. DD, §1 and affected
18 by Pt. RRR and amended by c. 591, Pt. DD, §1 and c. 622, Pt. CC, §1, is further amended
19 to read:
20 §6257. Municipal tax collector to receive Payment of amount equivalent to deferred
21 taxes from by the State
22 1. Payment of deferred taxes. Within 30 days of the receipt of information from a
23 municipal tax collector concerning the amount of deferred property taxes in the respective
24 municipality, the State Tax Assessor shall certify that amount to the Treasurer of the State
25 who shall make payment to the municipality on or before the 15th day of the following
26 month. Payments made for deferred property taxes in the unorganized territory must be
27 made to the Unorganized Territory Education and Services Fund established in section
28 1605.
29 1-A. Prorated payment of deferred taxes. The State Tax Assessor is authorized to
30 prorate payments to municipalities for claims filed pursuant to this chapter if the amount
31 available in the Senior Property Tax Deferral Revolving Account established in section
32 6266 in any fiscal year is insufficient to make full payments to all municipalities. If the
33 applicant for deferred taxes can not pay the difference due to the municipality, the
34 municipality that does not receive the full amount of deferred property taxes may cause a
35 tax lien certificate to be filed in the county registry of deeds for the amount not received.
36 1-B. Reimbursement to taxpayers. The State Tax Assessor is authorized to
37 reimburse taxpayers who qualified under this chapter and who have paid property taxes
38 that would have otherwise been deferred but for the prorating of benefits as allowed in
39 subsection 1‑A.
40 2. Accounts maintained. The bureau shall maintain accounts for each deferred
41 property and shall accrue interest only on the actual amount of taxes advanced to the
42 municipality.
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 1 Sec. 14. 36 MRSA §6258, sub-§1, ¶D, as enacted by PL 1989, c. 534, Pt. C, §1,
2 is amended to read:
3 D. Contain any other information that the bureau considers necessary to facilitate
4 administration of the homestead deferral program including, but not limited to, the right
5 of the taxpayer to submit any amount of money to reduce the total amount of the
6 deferred taxes and interest and the right of the taxpayer to withdraw from the deferral
7 of future property taxes under this chapte