An Act To Authorize Municipal Property Tax Deferral Programs
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA c. 907-B is enacted to read:
CHAPTER 907-B
MUNICIPAL PROPERTY TAX DEFERRAL PROGRAM
§ 6241. Definitions
For the purposes of this chapter, unless the context otherwise indicates, the terms used in this chapter have the same meaning as in chapter 907.
§ 6242. Municipal authority
The legislative body of a municipality may by ordinance adopt a program to defer property tax payments of persons who own homesteads in the municipality. A municipality may choose to restrict the program to persons who are at least 62 years of age.
1. Condition of program. A program adopted under this section must:
A. Require that the claimant owns a homestead in the municipality;
B. Calculate benefits in a way that provides greater benefits proportionally to claimants with lower incomes in relation to their property taxes; and
C. Specify events requiring payment of deferred property taxes and interest.
2. Relationship to state Circuitbreaker Program and to municipal property tax assistance. Benefits received under a program adopted by a municipality under this section are in addition to benefits provided under chapters 907 and 907-A. A municipality may, but is not required to, provide that:
A. Benefits under the program are equal to a percentage of the benefits received by the claimant under chapters 907 and 907-A; or
B. The amount of benefits received under the program are equal to the balance of property tax payments remaining after benefits are received by the claimant under chapters 907 and 907-A.
3. Repeal of program. A municipality that has adopted a program under this section may repeal it through the same procedure by which the program was adopted.
summary
This bill authorizes municipalities to establish property tax deferral programs.