The purpose of this chapter of the Wells Code is to provide
a means for certain individuals to take advantage of the Property
Tax Deferral Program for Senior Citizens enacted by the 124th Maine
Legislature during its Second Regular Session, as amended, to defer
certain property taxes assessed by the Town of Wells, and to enable
the Town to collect those taxes at the end of the deferral period,
with interest.
As used in this chapter, the following terms shall have the
meanings indicated:
ELIGIBLE HOMESTEAD
The owner-occupied principal dwelling, either real or personal
property, owned by the taxpayer and the land upon which it is located.
If the dwelling is located in a multiunit building, the eligible 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 dwelling compared to the total value of the building
exclusive of the common elements, if any.
FEDERAL POVERTY LEVEL
The non-farm income official poverty line for a family of the size involved, as defined by the Federal Office of Management and Budget and revised annually in accordance with the United States Omnibus Budget Reconciliation Act of 1981, Section 673, Subsection
2.
HOUSEHOLD
A claimant and spouse and members of the household for whom
the claimant is entitled to claim an exemption as a dependant for
the year in which relief is requested.
HOUSEHOLD INCOME
All income received by all persons of a household in a calendar
year while members of the household.
TAXPAYER
An individual who is responsible for payment of property
taxes and has applied to participate or is currently participating
in the program under this chapter.
In order to qualify for the tax deferral under this chapter,
the applicant must meet all of the following requirements when the
application is filed and thereafter as long as the payment of taxes
by the taxpayer is deferred:
A. The property must be an eligible homestead where the taxpayer has
resided for at least 10 years prior to application. The residency
requirement of this subsection does not apply if absence from the
eligible homestead was/is by reason of health.
B. The taxpayer is an owner of the eligible homestead, is at least 70
years of age on April 1 of the first year of eligibility and occupies
the eligible homestead.
C. The household income of the taxpayer does not exceed 300% of the
federal poverty level.
D. The household income of the taxpayer may not exceed 300% of the federal
poverty level during the entire period of the deferral. The applicant
may be asked to provide documentation of this during the period the
property tax on eligible property is deferred.
E. There must be no prohibition to the deferral of property taxes contained
in any provision of federal law, rule or regulation applicable to
a mortgage, trust deed, land sale contract or conditional sale contract
for which the eligible homestead is security.
F. There must be no outstanding property taxes owed on the homestead
at the time of application for deferral. The restriction imposed by
this subsection may be waived if the municipal treasurer determines
that the taxpayer is eligible to participate in the deferral of taxes
pursuant to this chapter but for this subsection. If such a waiver
is recommended, the municipal treasurer shall forward the application
with an explanation of the waiver to the Board of Selectmen for acceptance,
and by majority vote of the Board of Selectmen, they shall defer the
delinquent taxes subject to the provisions of this chapter.
If the taxpayer is determined to be eligible and the request
for a property tax deferral is accepted, it shall have the effect
of:
A. Deferring the payment of the property taxes levied on the eligible
homestead for the municipal fiscal year beginning on or after April
1 of the year the determination of eligibility is made.
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.
C. Continuing the deferral of the payment by the taxpayer of any future
property taxes for as long as the provisions of this chapter are met.
D. If property taxes are deferred under this program, the lien established
on the eligible homestead under Title 36, Section 552 of the Maine
Revised Statutes continues for the purpose of protecting the municipal
interest in the tax-deferred property.
E. Interest on the deferred taxes accrues at the rate of 0.5% above
the otherwise applicable rate for delinquent taxes.
F. In order to preserve the right to enforce the lien, the Town shall
record in the county registry of deeds a list of the tax-deferred
properties. The list must contain a description of each tax-deferred
property as listed in the municipal valuation together with all of
the names of each of the taxpayers listed on the valuation. The list
must be updated annually to reflect the addition or deletion of tax-deferred
properties, the amount of deferred taxes accrued for each property
and payments received.
G. The recording of the tax-deferred properties under this subsection
is notice that the Town claims a lien against those properties in
the amount of the deferred taxes plus interest together with any fees
paid to the county registry of deeds in connection with the recording.
For a property deleted from the list, the recording serves as notice
of release or satisfaction of the lien, even though the amount of
taxes, interest or fees is not listed.
The application for deferral under this chapter shall be in
writing on a form supplied by the Town of Wells, which may be amended
from time to time by the Board of Selectmen, and shall contain the
following at a minimum:
A. A description of the eligible homestead property, which shall include
the Property Tax Map and Lot Number as well as the physical address
of the property.
B. Name(s) and address(es) of the applicant(s).
C. Date(s) of birth of the applicant(s).
D. Social security number of the applicant(s).
E. A recitation of the facts establishing the eligibility for the deferral
under the provisions of this chapter, including:
(1) Facts that establish that the household income was less than 300%
of the federal poverty level, as defined above, for the calendar year
immediately preceding the calendar year in which the application is
filed; and
(2) Facts that show the applicant(s) has maintained the property as the
primary residence for the previous 10 consecutive years.
F. A statement, upon information and belief, that the household income
will be less than 300% of the federal poverty level, as defined above,
for the current calendar year in which the application is made.
G. A notice that the applicant may be required to provide evidence that the requirements of §
203-3 have been met, which may include a copy of the deed for the property, and a birth certificate.
H. A signature line which shall also have a statement notifying the
applicant(s) that s/he attests, under penalty of perjury, that the
statements contained in the application are true.
Subject to §
203-11, all deferred property taxes, including accrued interest, become payable when:
A. Death of claimant. The taxpayer who was granted a deferment of collection
of property taxes on the eligible homestead dies or, if there was
more than one applicant, the survivor of the taxpayers who originally
applied for deferment dies.
B. Transfer of the property. The eligible homestead is sold, or some
person other than the taxpayer who received the deferment becomes
the owner of the property.
C. Taxpayer moves. The tax-deferred property is no longer occupied by
the taxpayer(s) as a principal residence, except if the taxpayer(s)
must be absent from the eligible homestead for health reasons.
D. Removal of home. The tax-deferred property, a mobile or floating
home, is moved out of the Town.
E. Change in eligibility status. The taxpayer's household income was not less than 300% of the federal poverty level for the calendar year immediately preceding the date of the receipt of the annual deferral notice under §
203-9.
Nothing is this chapter is intended or may be construed to:
A. Prevent the collection, by foreclosure, of property taxes which become
a lien against tax-deferred property.
B. Affect any provision or provisions of any mortgage, or other instrument
relating to land, requiring a person to pay taxes.
If any provision of this chapter is held invalid, the other
provisions of the chapter will not be affected thereby.