Maine LD 118: An Act To Authorize Municipalities To Refund Amounts Collected in Excess of Tax Liens

LD 118 (subjects: PROPERTY TAX , DELINQUENT )

Official bill page at mainelegislature.org: http://www.mainelegislature.org/legis/bills/display_ps.asp?ld=118&PID=1456&snum=127


Sponsors | Actions | Bill Text & Amendments | Patterns of Support


Sponsors

Principal Sponsor: Sen. Earle McCormick of Kennebec: (R – District 14) — e-mail | Facebook

0 Cosponsors:

Actions

Chamber

Action
1/22/2015 Senate Committee on TAXATION
suggested and ordered printed
On motion by Senator McCormick of Kennebec REFERRED to the Committee on TAXATION
Ordered sent down forthwith for concurrence.
1/22/2015 House Bill REFERRED to the Committee on TAXATION.
In concurrence. ORDERED SENT FORTHWITH.
4/28/2015 Senate Report READ and ACCEPTED.
READ ONCE.
Committee Amendment “A” (S-55) READ and ADOPTED.
ASSIGNED FOR SECOND READING NEXT LEGISLATIVE DAY.
4/29/2015 Senate COMMITTEE ON BILLS IN THE SECOND READING REPORTS NO FURTHER VERBAL AMENDMENTS NECESSARY, Senator Saviello, Senate Chair. REPORT ACCEPTED.
READ A SECOND TIME and PASSED TO BE ENGROSSED AS AMENDED BY Committee Amendment “A” (S-55).
Ordered sent down forthwith for concurrence.
4/30/2015 House CONSENT CALENDAR – FIRST DAY
Under suspension of the rules
CONSENT CALENDAR – SECOND DAY.
The Bill was PASSED TO BE ENGROSSED as Amended by Committee Amendment “A” (S-55).
In concurrence. ORDERED SENT FORTHWITH.
5/5/2015 House PASSED TO BE ENACTED.
Sent for concurrence. ORDERED SENT FORTHWITH.
5/6/2015 Senate PASSED TO BE ENACTED – Emergency – 2/3 Elected Required, in concurrence.

Bill Text & Amendments

Important Note: The bill text below presents L.D. 118 as originally introduced. L.D. 118 was changed by the legislature through amendment. To understand the impact of this legislation in proper context, be sure to read adopted amendment text, available here: C-A (S-55) .

An Act To Authorize Municipalities To Refund Amounts Collected in Excess of Tax Liens

Emergency preamble. Whereas, acts and resolves of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and

Whereas, the property tax year begins April 1st; and

Whereas, in order to allow municipalities sufficient time to determine whether to refund any excess funds to a former owner of property foreclosed on by a municipality, this legislation needs to take effect as soon as possible; and

Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

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

Sec. 1. 36 MRSA 949 is enacted to read:

949. Disbursement of excess funds

1. Authorization to disburse. A municipality that obtains title to residential real estate under the operation of this article may disburse to the former owner the excess of any funds received from the disposition of that residential real estate.
2. Definitions. As used in this section, unless the context otherwise indicates, the following terms have the following meanings.

A. “Excess of any funds” means the amount obtained for the disposition of residential real estate less:

(1) All tax liens imposed on the residential real estate by the municipality, including interest;

(2) Fees for recordation and discharge of the lien, as established by Title 33, section 751, plus $13;

(3) The fee established in section 943 for sending a notice if the notice is actually sent, including certified mail, return receipt requested fees;

(4) Any court costs;

(5) All expenses incurred in disposing of the residential real estate; and

(6) Any property taxes that would have been assessed on the property while the property was held by the municipality within 180 days of foreclosure.

B. “Former owner” means a party named on a tax lien mortgage at the time of the levy of a tax lien or that party’s successors, heirs or assigns.

3. Unorganized territory. The obligations of a municipality under this section apply to the State with regard to property in the unorganized territory.

Emergency clause. In view of the emergency cited in the preamble, this legislation takes effect when approved.

summary

Under current law, if a municipality forecloses on a parcel of real estate for failure to pay taxes owed on that real estate, the municipality is under no obligation to return any funds that exceed the amount owed in taxes after the sale of the property.

This bill authorizes a municipality that forecloses on residential real estate to return the excess funds, after subtracting the tax lien, interest, fees for recording the lien, costs of mailing notice, court costs, taxes that would have been assessed while the property was held by the municipality and any other expenses incurred in disposing of the real estate.

Patterns of Support

Pattern of Cosponsorship by Region:

Pattern of Cosponsorship by Gender:

Pattern of Cosponsorship by Party:

Pattern of Cosponsorship by Campaign Finance Classification:

Note: Maine Clean Elections Act (MCEA) Qualified candidates only accept a small dollar value of initial contributions early in their campaigns, pledge not to accept further campaign contributions from private sources, and receive public funding for their campaigns. MCEA Non-Qualified candidates choose not to obtain public funding and instead are free to accept campaign contributions from individuals, party committees, political action committees and business sources.


This information about LD 118 was last updated on 2016-05-12.
The Open Maine Politics website is in a beta release and results should not be taken as definitive. Please visit the official website of the Maine State Legislature for entirely verifiable information.

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