Sec. 1. 36 MRSA §841-D is enacted to read:

§841-D.__Refund for error or mistake

If the assessors or the municipal officers determine that an abatement is necessary under section 841, subsection 1 as the result of an illegality, error or irregularity in the assessment of property, they must refund the amount of taxes that were overpaid over the previous 10 years as a result of the illegality, error or irregularity in the assessment, less the amount abated under section 841, subsection 1. The assessors or municipal officers may provide that the refund take the form of an annual credit against property taxes assessed on the same property with regard to which the illegality, error or irregularity__occurred.__The refund may be made in equal installments over the same period of time as the period of the incorrect assessment if the property is owned by the same person who made the overpayment that is the result of the illegality, error or irregularity.__If the property is transferred to another owner, no further refund installments are required.

SUMMARY

This bill provides that when a municipality abates property taxes due to an illegality, error or irregularity in the assessment, the property owner is entitled to a refund of the amount of taxes overpaid for the previous 10 years. The municipality may provide that the refund be a proportional credit against future property taxes over the same number of years as the incorrect assessment if the property is owned by the person who made the overpayment.