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HomeMy WebLinkAbout1993-08-23 93-414 ORDERCOUNCIL ACTION Item No. 93-414 Date August 23, 1993 Item/Subject: Abating Real estate Taxes Asaeesed Against Property Located at 1730 Stillwater Avenue, City Tex Map R66, Lot 4 Responsible Department: Legal See attached Memorandum dated 8/9/93. ar Departm V Manager's Commentstil.M• //UF/ � /1 �,LAd//UA l-0"/IWM�WM1lw 1Mter, Associated Information: Order, Memorandum dated 8/9/93 Finance Director Legal Approval: R�� pp ��^^ USC v/Yl City Solicitor _ Passage _ First Reading Referral page i of 10 93-614 AsupM to Councier Frankel August 23, 1993 CITY OF BANGOR Abating Real estate Taxes Assessed Against (TITLE.) WrOtr,-----.....- __. _.... _.._ ..... property Located at 1730 Stillwater Avenue, City Tax Map A66, Lot 4 (Account Humber 37417) ......._-..- ......... ....... ......... ......... __.. BOW cup CbsuaB Of W OUN ofBaxow. ORDERED, THAT the City council of the City of Bangor, acting as the Municipal Officers of the City of Bangor, pursuant to 36 MRSA S 841, upon application by the Deputy Tax Collectorr hereby abates the following real estate taxes. Said taxes are abated as having been assessed in error to the "emery Lane Heirs.^ The City Council further abates all interest, lien charges and other charges accrued on account number 37417 as a result of the above erroneous assessments. Amount Taxpayer Acct. Ho, Tax Year Abated Emery Lane Heirs 37417 1986 $240.00 Emery Lane Heirs 37417 1987 234.75 Emery Lane Heirs 37417 1988 229.39 Emery Lane Heirs 37417 1989 239.85 Emery Lane Heirs 37417 1990 239.63 Emery Lane Heirs 37417 1991 281.61 The City Council further abates all interest, lien charges and other charges accrued on account number 37417 as a result of the above erroneous assessments. 93-414 OR OCR IN CITY COUNCIL August 23, 1993 Title, Paaeed Abating Heal Be[a[e Taxes Assessed C1TY pR Against Property Located at 1230 Stillwater Avenue. Cii'ty�[Tayxn Ma H66f [ 40 (AccounC Number 3]417) Councilmen August 9, 1993 TO: Bangor City Council FROM: Erik Stnmpfel, City Solicitor RB: Emery LaneH i P Beginning in May, 1986, the City of Bangor recorded a series of tax liens against a 37.5 acre parcel located on the Orono town line, lying between the former "Veazie' railroad line, so-called, and the City's Kittredge Road Landfill. (See attached sketch.) The parcel, identified in the City's tax maps as Map R661 Lot 4, was assessed to the "Emery Lane heirs", and the City's tax liens were recorded under the same name. Ultimately, five tax liens were recorded, as follows: Tax Year Filinq Date Vol/Page Lien Amount 1986 5/22/86 3823 - 61 $ 258.28 + 24.67 Sion chga 1987 5/22/87 4024 - 241 252.63 + 34.67 " 1988 5/20/88 4231 - 12 243.57 + 25.00 " 1989 5/18/89 4443 - 40 254.53 + 25.00 " 1990 5/18/90 4648 - 167 255.51 + 25.00 " $1,264.62 + 124.34 _ Additional real estate taxes were assessed against the property for FY 1991. On May 2, 1991, on advice of the Legal Department, the City Assessor's office transferred the property to "City -owned' on account of the then -matured 1986-89 tax liens. The City had earlier sent out copies of the statutory "Notice of Impending Automatic Foreclosure' under 36 MESA 5 943 to all 9 of the known surviving heirs of Emery Lane. These Notices specified a tax lien foreclosure date of May 1, 1991, consistent with 36 MRSA 5 943. Most of the Notices sent were returned to the City Treasurer's office as undeliverable. In mid-1992, as a result of conflicts between o of the Emery Lane heirs and the City Forester over ownership oP and access to Lot No. 4 across the City's abutting land, my office investigated the title history of Lot No. 4 at the Penobscot County Registry of Deeds. That investigation disclosed that on December 29, 1978, well prior to the assessment date for FY 1986 taxes, the individuals known as the "Emery Lane heirs" had conveyed the parcel concerned by quitclaim deed to seven of them as tenants in common, presumably as part of the settlement of the Emery Lane estate. The City of Bangor had actual notice of this conveyance, in that a copy of the heirs' 93-414 -2- quitclaim deed was on file in the Assessor's office, and was recited as a source of title on the property assessment card. Because the City had actual notice of the conveyance of Lot 4 from the Beery Lane heirs to seven of the heirs as individuals, and consistently with the Law Court's holding in Blaney v. Inhabitants of the Town of Shanleich, 455 A.2d 1381 (Me. 1983) ("strict compliance" with tax 11en law necessary to divest property owners of their title to property), I advised the City Tax Collector's office that the City's recorded tax liens were invalid, and that the City's prior foreclosure of the 1986-69 tax liens did not vest title to Lot 4 in the City of Bangor. I advised the City Assessor's office that the City's original tax assessments were also invalid as having been assessed against the wrong parties, and that this would need to be corrected. Acting on my advice that 36 MASA 9 841(1), s_ copy attached, provided the proper authority, and limited our ability to reassess back tax amounts, the City Assessor issued Supplemental Assessment Bos. 25 and 26, each dated October 2, 1992, assessing a total of $626.23 against Lot No. 4 for FY 1992. and FY 1993 taxes. These taxes H remained unpaid until July 23, 1993, when they were paid in full by R. Bim. Lane on behalf of himself and his co-owners. Taxes due for tax years 1986-1991 have not been reassessed against the correct owners. in fact, and contrary to my advice, the provision con- trolling late tax assessTents in this situation is 36 MRSA 9 713-A, copy attached, which may allow the City to supplementally assess 1986-1991 taxes owed on this property against the true owners. The error in the City's 1986-1991 tax assessments of this property leave three issues to be resolved by the City Council, as follows: (1) The original erroneous assessments for FY 1986-1991 . remain on the City's computer as an outstanding unpaid account. Because these assessments were in error, they are uncollectible, and should be abated by the City Council pursuant to36 MRSA 9 841(3) (see copy attached). Because the amount concerned exceeds $1,500.00, this item requires action by the full City Council rather than the Finance Committee. The first attached Council Order would abate these assessments pursuant to 9 841(3). 19 713-A was enacted by the 113th Legislature with an effective date of September 29, 1987, and therefore may not apply to the City's 1986-88 taxes, which were committed for collection prior to September 29, 1987. In addition, the errors here were in the original assessments rather than in the City's lien and foreclosure process. This may provide a defense to application of 9 713-A, which by its terms allows for late assessment of back taxes when a municipality's tax lien or foreclosure process i determined to be invalid. Section 713-A has not yet been construed by the Law Court. -3- (2) Because the property's current owners have paid all taxes correctly assessed against than, the City's recorded tax liens should be discharged and a quitclaim deed issued to the current owners as successors in title to the emery Lane heirs. The second of the attached Council Orders would accomplish this. (3) The Council should inform the City Assessor whether it fishes him to supplementally assess taxes against the current owners for the 1986-1991 period. This would be a new supplemental assessment, and would not include interest and amounts accrued under the City's prior invalid assessments and liens. if unpaid, the new assessment would become lienable 6 months after the new commitment date. /E,y k_ Based ofi the City -caused confusion over this account, I advised Sart Lane, through the Assessor's office, that I would recommend taxes not be supplementally assessed for the 1986-1991 period, if 1992-1993 taxes were paid in full by July 26th, The 1992-1993 taxes were paid in full by that date. Accordingly, I commend that the 1986-1991 taxes owed on this property not be supplementally assessed. 2.s. E. S. to Attachments pc: John quartararo Ben Birch Tom Hicks UY n w<s t A6G bl 1