The purpose of this article is to establish a property tax stabilization and partial deferral program for persons 70 years of age and over who reside in the Town of Cumberland and meet certain income level and residency duration requirements, as further described herein. Under this program, the Town of Cumberland will defer the collection of a portion of an eligible taxpayer's property taxes (assessed and owed after the date of enrollment to taxpayers who maintain an eligible homestead in the Town of Cumberland and meet the criteria established by this article, including but not limited to the requirement that the taxpayer annually submit an application form to the Town establishing such eligibility).
[Adopted 2-10-2025]
This article is adopted pursuant to the municipal authority set forth in 30-A M.R.S. § 3001 and 36 M.R.S. § 6235(2), as amended, which permits the Town Council to adopt a property tax stabilization and partial deferral program for senior citizens, provided the conditions set forth therein are met.
As used in this article, the following terms shall have the meanings indicated:
Shall have the meaning set forth in 36 M.R.S. § 6235(1)(A), as amended. As of the adoption of this article, "deferred property taxes" means the amount of property taxes assessed on an eligible homestead, the collection of which is deferred by the Town of Cumberland under this article.
Shall have the meaning set forth in 36 M.R.S. § 6235(1)(B), as amended. As of the adoption of this article, "eligible homestead" means a homestead owned and occupied by an eligible individual who is eligible for a homestead exemption under Title 36, chapter 105, subchapter 4-B of the Maine Revised Statutes, for the property tax year during which an application for stabilization is made under this article.
Shall have the meaning set forth in 36 M.R.S. § 6235(1)(C), as amended. As of the adoption of this article, "federal poverty level" means the nonfarm 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.
Shall have the meaning set forth in 36 M.R.S. § 6201(7), as amended. As of the adoption of this article, "household income" means all income received by all persons of a household in a calendar year while members of the household. As of the adoption of this article, "income" means Maine adjusted gross income, which is calculated by the applicant's federal adjusted gross income for the immediately preceding tax year, as modified by the additions and subtractions set forth in 36 M.R.S. § 5122, as amended, and as further modified by 36 M.R.S. § 6201(9), as amended. If the applicant and/or any member of the household do not file federal or Maine income tax returns, income shall be the cumulative amount of all income received by the applicant and each additional member of the household from whatever source derived, including, but not limited to, the following items:
Compensation for services, including wages, salaries, tips, fees, commissions, fringe benefits and similar items;
Gross income derived from businesses;
Gains derived from dealings in property (capital or other);
Interest;
Rents from real estate;
Royalties;
Dividends;
Alimony and separate maintenance payments received;
Annuities;
Pensions or other retirement distributions;
Income from discharge of indebtedness;
Distributive share of partnership gross income;
Income from interest in an estate or trust;
IRA distributions;
Unemployment compensation;
Social Security benefits;
Workers compensation benefits or insurance proceeds;
Inheritance proceeds;
Life insurance proceeds paid on death of insured (minus the first $5,000);
Settlement proceeds;
Support money;
Strike benefits;
Disability benefit payments and veterans' disability pensions; and
Public assistance benefits.
Means the deferral of the payment of property taxes assessed on an eligible homestead in excess of the stabilized taxes assessed on that eligible homestead.
Means the partial property tax deferral program established under this article.
Shall have the meaning set forth in 36 M.R.S. § 6235(1)(H), as amended. As of the adoption of this article, "stabilize" means to set the amount of property tax required to be paid by a taxpayer on an eligible homestead in the property tax year during which the taxpayer first qualifies for the program and to maintain that amount each year thereafter.
Shall have the meaning set forth in 36 M.R.S. § 6235(1)(I), as amended. As of the adoption of this article, "stabilized taxes" means the amount of property tax to be billed to and due from the taxpayer on the taxpayer's eligible homestead in each year of the program.
Means the property or properties upon which the payment of taxes are partially deferred under this article.
Means ad valorem taxes, assessments, fees, and charges entered on the assessment and tax roll of the Town of Cumberland.
Shall have the meaning set forth in 36 M.R.S. § 6235(1)(L), as amended. As of the adoption of this article, "taxpayer" means an individual who is responsible for payment of property taxes and has applied to participate or is currently participating in the program under this article. When used in this article, "taxpayer" shall refer to both a single individual and multiple individuals who may qualify for the program under this article.
To participate in this program, a taxpayer must submit a completed application to the Town Manager or the Town Manager's designee after July 1 but no later than August 1, of the year for which the stabilization and partial property tax deferral is requested, and in each subsequent year in which the taxpayer wishes to remain enrolled in the program. The Town shall determine the form and content of the application and may request additional information as deemed reasonably necessary to verify the information contained in the application. The application shall contain, at a minimum, sufficient evidence to demonstrate that the taxpayer meets all of the following criteria:
A.
The property is an eligible homestead where the taxpayer has resided for at least 20 consecutive years prior to the date of application;
B.
The taxpayer is an owner of the eligible homestead;
C.
The taxpayer is or will be at least 70 years of age on April 1st of the first year of eligibility for the program;
D.
The taxpayer occupies the eligible homestead as a primary place of residence;
E.
The household income of the taxpayer does not exceed 500% of the federal poverty level;
F.
The taxpayer has not been deemed eligible to defer and is not currently deferring property taxes under the property tax deferral program administered by the State of Maine pursuant to 36 M.R.S. § 6250, et seq., as amended; and
G.
There are no outstanding property taxes owed on the eligible homestead as of the date of the taxpayer's application or any time thereafter with respect to the amount of the taxpayer's property tax liability as of the tax year immediately preceding the taxpayer's participation in this program.
Nothing in the criteria set forth above is intended to preclude an applicant from participating in other local property tax assistance programs authorized and administered by the Town pursuant to state law, including, but not limited to, the program set forth in Chapter 261, Article I of this Code; provided, however, that the benefits of this program shall not be afforded in conjunction with the benefits of any other municipal property tax assistance program for which the taxpayer decides to participate.
A.
The Town Manager or the Town Manager's designee shall have the sole discretion to determine whether an application is complete. If the Town Manager or the Town Manager's designee determines that the application is not complete, the Town Manager or the Town Manager's designee shall notify the applicant, in writing, of the need to supply additional information in support of their eligibility and establish a timeframe within which the applicant must respond. If the applicant does not supply the requested additional information within the prescribed timeframe, the application will be considered withdrawn and may not be resubmitted for that tax year, but may be resubmitted for the following tax year.
B.
No later than August 1 of the property tax year for which a taxpayer has submitted a complete application under § 261-18 of this article, the Town Manager or the Town Manager's designee shall determine whether the applicant has met all of the criteria listed in § 261-18 of this article and shall thereafter take one of the following actions:
(1)
If the Town Manager or the Town Manager's designee determines that the applicant is eligible for stabilization and partial property tax deferral under this program, the Town Manager or the Town Manager's designee shall approve the application and notify the Deputy Tax Collector, Tax Assessor and the applicant, in writing within 10 days of the approval.
(2)
If the Town Manager determines that the applicant is not eligible for stabilization and partial deferral of property taxes under this program, the Town Manager shall, within 10 days of that decision, notify the applicant in writing, with the reason for denial, and information regarding the applicant's appeal rights pursuant to § 261-25 of this article.
A.
An application, information submitted in support of an application, and files and communications relating to an application for stabilization and partial property tax deferral under the program are confidential and are not "public records" as defined in 1 M.R.S. § 402. Hearings and proceedings held by the Town of Cumberland on an application submitted under this article shall be held in executive session, unless otherwise requested by the applicant. However, nothing in this paragraph applies to the recording of liens or lists under § 261-24 or any enforcement proceedings undertaken by the Town of Cumberland pursuant to this article or other applicable law.
B.
Notwithstanding any other provision of this article, the Town of Cumberland shall make available upon request the most recent list of tax deferred properties within the Town of Cumberland required to be filed under § 261-24. Further, the Town of Cumberland may publish and release as public information statistical summaries concerning the program provided the release of such information does not jeopardize the confidentiality of individually identifiable information.
A.
If a taxpayer is determined to have met the eligibility criteria contained in § 261-18 of this article, and their application for stabilization and partial property tax deferral is accepted, it shall have the effect of deferring the taxpayer's payment of all taxes assessed to the eligible homestead in excess of the stabilized taxes, for the municipal tax year beginning on April 1 of the year the determination of eligibility is made. However, taxpayers must submit a new application for each subsequent tax year in which they wish to participate in the program, by the date established in § 261-19 of this article. The failure of a taxpayer to submit a timely application, or the failure of the taxpayer to satisfy the eligibility criteria of § 261-18, shall render them ineligible to participate in the program for the following tax year.
B.
Taxpayers shall at all times remain responsible for the payment of stabilized taxes. In the event that the property taxes assessed on the eligible homestead are decreased due to a municipal revaluation or reduction in the Town's mil rate, the taxpayer will remain eligible for the program provided all other eligibility requirements are met, but there will be no further property taxes deferred until such time as there are property taxes in excess of the amount of stabilized taxes assessed against the eligible homestead.
Subject to § 261-23, all property taxes deferred and accrued interest must be paid pursuant to § 261-24 when:
A.
The taxpayer dies;
B.
Some person other than the taxpayer becomes the owner of the property;
C.
The tax deferred property is no longer occupied by the taxpayer as a principal residence, except that this paragraph does not apply if the taxpayer is required to be absent from the eligible homestead for health reasons; or
D.
The tax deferred property, a mobile home, is moved out of the Town of Cumberland.
E.
The taxpayer fails to pay the stabilized taxes in any tax year.
If one of the events listed in § 261-22 occurs, and the ownership of the eligible homestead is transferred to another member of the same household, the transferee may apply to the Town for continuation of the stabilization and partial property tax deferral if the transferee meets the conditions in § 261-18.
A.
If property taxes are stabilized and partially deferred under this program, the lien established on the tax deferred property by the Town pursuant to 36 M.R.S. § 552, as amended, shall exist and continue for the purpose of protecting the Town of Cumberland's interest in the stabilized and partially tax deferred property for as long as the taxpayer or another eligible household member continues to participate in and be eligible for the program. Interest on the property taxes deferred accrues at the rate of 0.5% points above the otherwise applicable rate for delinquent taxes as established by the Cumberland Town Council.
B.
In order to preserve the right to enforce the lien established by law as referenced in this section, the Town of Cumberland shall record in the Cumberland County Registry of Deeds a list of the tax deferred properties located within the Town of Cumberland. The list shall contain a description of each tax deferred property as listed in the municipal valuation together with the name of the taxpayer(s) listed on the valuation. The list shall be updated annually to reflect the addition or deletion of tax deferred properties, the amount of incrementally deferred taxes for each property, and payments received.
C.
The recording of the list of tax deferred properties under this section constitutes notice that the Town of Cumberland claims a lien against those properties in the amount of the deferred taxes, plus interest, together with any fees paid to the Cumberland County Registry of Deeds in connection with the recording. For a tax deferred 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.
D.
When it is determined that one of the events set forth in § 261-22 has occurred and that the stabilized and partially tax deferred property is no longer eligible for stabilization and partial property tax deferral under this article, the Town of Cumberland shall send notice by certified mail to the taxpayer, or the taxpayer's heirs or devises, listing the total amount of property taxes deferred, including accrued interest and costs of all the years deferred and establishing a due and payable date. For events listed in § 261-22 A, B, C, and E, payment is due within 45 days of the date of the notice. When the event listed in § 261-22D occurs, the total amount of deferred taxes is due and payable five days before the date of removal of the mobile home from the Town of Cumberland.
E.
The Town of Cumberland shall include in the notice to the taxpayer a statement that the lien enforcement procedures applicable to municipal property taxes, as set forth in 36 M.R.S. § 941, et seq., shall also apply to the Town's enforcement of its interests under this article. If the property tax deferred has not been satisfied by the date identified in the notice pursuant to this section, the Town of Cumberland may enforce the lien according to procedures set forth in 36 M.R.S. § 941, et seq.
A.
Any person aggrieved by any decision made by the Town under this article may file a written appeal of such a determination with the Town Council, within 30 days of notification of denial or disqualification.
B.
The Town Council shall schedule a hearing of the applicant's appeal within 30 days of receipt of notice of an appeal. This hearing shall be conducted in executive session. Following the hearing, the Town Council shall make a decision within 15 days and shall notify the applicant, in writing, of its decision within five business days of making such a decision.
C.
An appeal of a determination of the Town Council under this section shall be to the Maine Superior Court within 30 days of that decision, in a manner consistent with Rule 80B of the Maine Rules of Civil Procedure.
Nothing in this article is intended or shall be construed to:
If any provision of this article is held by a court of competent jurisdiction to be invalid, the other provisions of this article will not be affected thereby.
This article shall be effective upon adoption by the Cumberland Town Council, but applications under this article may not be accepted for any year prior to the tax year beginning April 1, 2025. The property tax for taxpayers who are approved to participate in this program during its first year following adoption shall be based on the difference between the taxpayer's property tax liability as of April 1, 2024 and the taxpayer's property tax liability as of April 1, 2025.
The Cumberland Town Council shall review this article annually, in conjunction with the Town Manager, Tax Collector, and Town Attorney to ensure compliance with existing statutes, to monitor compliance with all requirements of this article, and to evaluate the impact of this program to the Town's budget.
The Town of Cumberland may repeal the Senior Property Tax Deferral Program through the same procedures by which the program was adopted; however, any property taxes deferred under the program continue to be deferred under the conditions of the program on the date it was repealed.