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.
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Departm V
Manager's Commentstil.M•
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Associated Information: Order, Memorandum dated 8/9/93
Finance Director
Legal Approval: R�� pp ��^^
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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
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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.
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(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
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