HP1245, LD 1693, item 1, An Act To Amend the Law Governing Abatements of Property Taxes for Infirmity or Poverty

An Act To Amend the Law Governing Abatements of Property Taxes for Infirmity or Poverty

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 36 MRSA §841, sub-§2, as amended by PL 2005, c. 169, §1, is further amended to read:

2. Infirmity or poverty. The municipal officers , or the State Tax Assessor for the unorganized territory, within 3 years from commitment, may, on their own knowledge or on written application therefor, make such abatements as they believe reasonable on the real and personal taxes on the primary residence of any person who, by reason of infirmity or poverty, is in their judgment unable to contribute to the public charges. The municipal officers , or the State Tax Assessor for the unorganized territory , may extend the 3-year period within which they may make abatements under this subsection.

Municipal officers or the State Tax Assessor for the unorganized territory shall:

A. Provide that any person indicating an inability to pay all or part of taxes that have been assessed because of poverty or infirmity be informed of the right to make application under this subsection;

B. Assist individuals in making application for abatement;

C. Make available application forms for requesting an abatement based on poverty or infirmity and provide that those forms contain notice that a written decision will be made within 30 days of the date of application;

D. Provide that persons are given the opportunity to apply for an abatement during normal business hours;

E. Provide that all applications, information submitted in support of the application, files and communications relating to an application for abatement and the determination on the application for abatement are confidential. Hearings and proceedings held pursuant to this subsection must be in executive session;

F. Provide to any person applying for abatement under this subsection, notice in writing of their decision within 30 days of application; and

G. Provide that any decision made under this subsection include the specific reason or reasons for the decision and inform the applicant of the right to appeal and the procedure for requesting an appeal.

For the purpose of this subsection, benefits provided under chapter 907 are deemed available to the applicant for the purpose of contributing to the public charges.

Sec. 2. 36 MRSA §6201, sub-§10, as amended by PL 2007, c. 325, §1, is further amended to read:

10. Property taxes accrued. "Property taxes accrued" means property taxes actually paid by the claimant exclusive of special assessment, delinquent interest and charges for service levied on a claimant's homestead in this State as of April 1, 1972, or any tax year thereafter. If a homestead is owned by 2 or more persons or entities as joint tenants or tenants in common, and one or more persons or entities are not members of the claimant's household, "property taxes accrued" is that part of property taxes levied on the homestead that reflects the ownership percentage of the claimant and the claimant's household and paid by the claimant. If a claimant and spouse own their homestead for part of the year for which relief is requested and rent it or a different homestead for part of the same tax year, "property taxes accrued" means taxes levied on the homestead on April 1st, multiplied by the percentage of 12 months that the property was owned and occupied by the household as its homestead during the year for which relief is requested , and paid by the claimant. When a household owns and occupies 2 or more different homesteads in this State in the same calendar year, property taxes accrued relate only to the total of the property taxes owed and actually paid for the time that each property was occupied by the household as a homestead. To calculate the amount attributable to each property, the April 1st assessment on each homestead is multiplied by the percentage of 12 months that each property was owned and occupied by the claimant as the claimant's homestead during the year for which relief is requested. If a homestead is an integral part of a larger unit such as a farm, or a multipurpose or multidwelling building, property taxes accrued are that percentage of the total property taxes accrued and actually paid that the value of the homestead is of the total value, except that property taxes accrued do not include any portion of taxes claimed as a business expense for federal income tax purposes. For purposes of this chapter, "unit" refers to the parcel of property separately assessed of which the homestead is a part.

Sec. 3. 36 MRSA §6204-A is enacted to read:

§ 6204-A. Proof of payment of taxes

For applications filed on or after August 1, 2012, a claimant shall provide proof of payment of the property taxes accrued for which the claimant is seeking reimbursement under this chapter. A claimant who receives an abatement of property taxes based on infirmity or poverty pursuant to section 841, subsection 2 may not claim that portion of property taxes abated.

summary

This bill provides that benefits issued to a property owner under the Circuitbreaker Program are deemed available to contribute to the public charges for the purposes of calculating eligibility at the municipal level for a property tax abatement for reasons of infirmity or poverty.

Under the Circuitbreaker Program, an owner of property files for a reimbursement benefit based on the property taxes accrued, but not necessarily paid, from the prior calendar year on the owner's homestead. This bill amends the Circuitbreaker Program to specify that the reimbursement benefit is calculated based on the property taxes actually paid by the owner on that owner's homestead and requires the claimant to provide proof of payment. Any property taxes abated by a municipality for infirmity or poverty may not be claimed under the Circuitbreaker Program.

HP1245 LD 1693	Second Regular Session - 125th Maine Legislature		LR 2526 Item 1
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