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ORIGINAL PACKET 4-23-2018 PAGE 98. HAS BEEN SINCE UPDATED.
5-30-2018 MEETING PACKETS PAGE 56. SEE THE DIFFERENCE.
Please pass this Proposed Amendment to all our citizens.
Sponsor of the amendment is Chair Person Kenneth Lemont.
Feel free to show your support for our seniors: AT THE MEETINGS, DURING PUBLIC COMMENT OR VIA THE TOWN WEBSITE. IF YOU CAN’T MAKE IT, HERE ARE YOUR COUNCILOR EMAIL ADDRESSES. CLICK ON THE NAMES TO SEND THEM AN EMAIL.
CHAIR PERSON KEN LEMONT
VICE CHAIR CHARLES DENAULT
COUNCILOR JEFFREY THOMSON
COUNCILOR GARY BEERS
COUNCILOR JEFF PELLETIER
COUNCILOR MATTHEW BROCK
FRANK DENNETT WILL BE GIVEN ANY EMAILS RECEIVED.
PLEASE READ.
TOWN COUNCIL AGENDA MAY 30th, 2018
You can express yourself during the 3 minutes Public Comment
11. DISCUSSION a. Discussion by members of the public (three minutes per person) b. Response to public comment directed to a particular Councilor c. Chairperson’s response to public comments
13 c. (050318-10) The Kittery Town Council hereby ordains amendments to Title 13.04 – Taxpayer Relief Program. Sponsored by Chairman Kenneth Lemont.
REPORT TO TOWN COUNCIL
Meeting Date: May 30, 2018 6:00 P.M.
From: Kendra Amaral, Town Manager
Subject: Property Tax Relief and Collection Package
Councilor Sponsor: Chairperson Kenneth Lemont
UPDATED
EXECUTIVE SUMMARY
We are proposing the Council incorporate both 36 MRS §6232 Municipal Property Tax Assistance program and §6271 Tax Deferral for Senior Citizens into our Title 13 under the heading of Taxpayer Relief Programs.
We are also proposing an update to our policy for the collection of unpaid taxes. The purpose of this revision is to bring our policy in line with current state law, create a formal process for establishing payment plans, allow for write-offs of minor amounts owed, and clarify the process for foreclosure.
BACKGROUND
Councilor Lemont requested that the administration look into the Municipal Property Tax Assistance program in 36 MRS §6232. In the process of researching the program, we began reviewing our unpaid taxes from prior years, our policy for deferral and collection of unpaid property taxes, and other tax reduction and deferral options available within MRS.
STATEMENT OF NEED
Total taxes in lien currently exceeds $330,000. In some cases, tax liens are more than five years old. The value of the liens range from $0.37 to over $13,000.
We are proposing a package of amendments to ordinance and policy that address the matter of unpaid property taxes from multiple angles. We believe this package balances options for those in need with the town’s obligation to collect on committed taxes in a fair, consistent, and predictable manner for our property taxpayers.
The Municipal Property Tax Assistance program, as proposed, allows for a credit or reduction of property taxes for residents 70 years of age or older with specific income limitations, and a demonstrated 10-year history of Kittery residence. We are proposing the credit be up to $1,000 annually per household. This is modeled on other communities in Maine that have successfully adopted and implemented the state law. The program is proposed to be funded by exposed undesignated reserve (unencumbered surplus) by ballot vote each year. The Council has approved of a town warrant article for up to $50,000 for this program in Fiscal Year 2019.
The Tax Deferral for Senior Citizens program allows seniors to defer their property taxes until such time as the property is sold, transferred, or no longer occupied by the qualifying resident. The taxes will accrue with interest and be due when a qualifying event occurs. This does not require funding, as
the taxes represent deferred revenue.
MEETING DATE: APRIL 23, 2018 – UPDATED MAY 30, 2018
We are also proposing an update to our Policy for collection of unpaid taxes. This policy will allow us to write off negligible amounts (example $0.37). It will also make the process of managing liens more straightforward allowing us to work with taxpayers to address outstanding taxes before they balloon. With an approved policy, we will seek to implement it on an annual basis, so as to establish a consistent and predictable calendar of action each year.
It is understood that LD1629 recently came out of the Taxation Legislative Committee with a vote of “Ought to Pass with Amendment”. If passed we will update our policies to reflect the new state law effecting persons over 65 with delinquent taxes.
LD1629 has been carried over to a special session, however it is unclear if the special session will occur or if the Legislature will chose to act on this particular bill in special session.
The amended bill requires a municipality to sell by real estate broker any property foreclosed on if 1) the owner was 65 or older on the date the tax lien was filed, and 2) was declared a homestead, and 3) the owner has an income of less than $40,000 in the prior year, and 4) the value of liquid assets of the residents is less than $50,000 for an individual and $75,000 for two or more individuals in the household.
The proceeds of the sale, less taxes, fees, penalties, interest, and other charges owed to the municipality, would be turned over to the prior owner.
If the municipality cannot engage a real estate agent or the property does not sell by listing through an engaged real estate agent within six months, the municipality may treat the disposal as it would other foreclosed property.
UPDATE
Councilor Dennett requested two changes to the package presented. The first is to address the scenario where a taxpayer may own sufficient assets to meet their property tax obligation yet still qualify based on income. An asset limit has been added to the ordinance to attempt to address this (see highlighted).
The second change is related to the proposed Policy for Collection of Unpaid Property Taxes. Upon reviewing with municipal legal services, it has been noted that the withholding of a building or other administrative permit due to delinquent taxes is not advised through policy. It was noted that some communities, through ordinance, require payment of delinquent taxes prior to issuance of a permit or license. There is presently no known challenge in court to these ordinances. The proposal to withhold administrative permits has been removed from the policy.
We do intend to note with applicants when there are delinquent taxes and seek payment as best possible. I believe it beneficial to advise the Council of delinquent property taxes for property owners seeking license and permit seeking approval from the Council.
PROPOSED SOLUTION/RECOMMENDATION
Approve as presented.
KITTERY TOWN CODE TITLE 13, PROPOSED AMENDMENT –
TAX RELIEF PROGRAMS
DRAFT: April 23, 2018
1 AN ORDINANCE relating to the municipality’s authority for Town governance to give due and
2 proper attention to its many demands pursuant to the Town Charter, Federal law, and Maine
3 Revised Statutes, and more particularly where set forth in Maine Revised Statutes Title 30-A,
4 Municipalities and Counties.
5 WHEREAS, the Kittery Town Council is authorized to enact this Ordinance, as specified in
6 Sections 1.01 and 2.07(3) of the Town Charter; 30-A MRS §3001, 36 MRS §6232 and §6271,
7 pursuant to its powers that authorize the town, under certain circumstances, to provide for the
8 public health, welfare, morals, and safety, and does not intend for this Ordinance to conflict with
9 any existing state or federal laws; and
10 WHEREAS, the Kittery Town Council seeks to provide access to property tax relief programs
11 where allowed by state law for those residents who qualify; and
12 WHEREAS, the annual implementation of the programs will be conditioned upon annual funding
13 being appropriated;
14 NOW THEREFORE, IN ACCORDANCE WITH TITLES 30-A MRS §3001, 36 MRS §6232 and
15 §6271, AND TOWN CHARTER §2.14, THE TOWN OF KITTERY HEREBY ORDAINS
16 AMENDMENT TO TITLE 13 OF THE TOWN CODE, AS PRESENTED.
17 INTRODUCED and read in a public session of the Town Council on the day of ,
18 20 , by: {NAME} Motion to approve by Councilor
19 {NAME}, as seconded by Councilor {NAME} and
20 passed by a vote of .
21 THIS ORDINANCE IS DULY AND PROPERLY ORDAINED by the Town Council of Kittery,
22 Maine on the day of , 20 , {NAME}, , Chairperson
23 Attest: {NAME}, Town Clerk