HomeMy WebLinkAbout2009-03-09 09-110 RESOLVECOUNCIL ACTION
Item No. 9 Q
Date: 03/09/09
Item/Subject: Resolve, Expressing the Support of the City of Bangor for An Act to Amend Poverty
Abatement Law.
Responsible Department: Executive/Health and Community Services
Commentary:
Several municipal health and welfare directors, working with the Maine Municipal Association, have
drafted proposed legislation to amend the current poverty abatement law. This act would clarify that a
decision regarding an application for a poverty abatement may be deferred until the usual period to pay
the property taxes has expired and the tax delinquency is within 30 days of going to lien. This provision
would allow final action on an abatement request to be deferred under circumstances where the
possibility exists that the applicants financial circumstances will improve in the near future. The bill also
clarifies that the value of real and personal property may be considered as available to contribute to the
payment of property taxes provided that use of those properties does not impair the ability of the
applicant to remain in his or her residence and provide for basic needs. The bill also authorizes the
municipal officers to either grant an abatement or allow a tax lien to mature, not foreclose on it thus
allowing the applicant to remain in the property, and recover the taxes due when the property is later
sold or transferred.
Under this proposal, the City would have the option of granting the abatement and immediately forgiving
the taxes due or choosing to defer the collection of taxes until the property is sold. This would allow an
additional option in those instances where the circumstances of an applicant are likely to change in the
future or where an applicant is asset rich but cash poor and a tax lien can mature without creating issues
with a mortgage holder.
Department Head
Manager's Comments: This has been reviewed and is recommended by Government Operations.
City Manager
Associated Information:
Budget Approval:
Legal Approval:
Introduced for
X Passage
First Reading
Referral
A&�
lz
Finance Director
Page ,_ of
Solicitor
Assigned to Councilor Gratwick
CI`iY OF BANGOR
March 9, 2009
�9 j 0
(TITLE.) Resolve, Expressing the Support of the City of Bangor for An Act to Amend Poverty
Abatement Law.
WHEREAS, Maine law currently requires municipal officers to abate the property taxes owed by
individuals who present evidence indicating that they are unable to pay such taxes
due to their current financial circumstances; and
WHEREAS, while such abatements are appropriate, current law does not provide guidance as to
the timing of such abatements nor allow consideration of real and personal
property assets that might be available to assist the home owner in meeting his or
her obligations; and
WHEREAS, this legislation would clarify that poverty abatements need not be granted until
within thirty days of going to lien, thus allowing the muncipal officers to address
situations where the economic situation of the applicant is likely to change in the
near future; and
WHEREAS, it would also allow taking into account the real and personal property assets of an
applicant in situations where accessing these assets would not impair the ability of
the applicant to remain in his or her residence; and
WHEREAS, finally, this legislation would provide an option to the municipal officials to defer
property taxes by allowing a non -foreclosing lien to be placed on the applicant's
real property that would ensure that property taxes that are owed will be paid at a
future date when the property is sold or transferred; and
WHEREAS, property tax deferral may be appropriate in instances where an applicant has
significant equity in his or her property but may currently be unable to pay taxes as
a result of their economic circumstances; and
WHEREAS, overall, this proposed legislation will continue to allow for tax abatements when and
if necessary while increasing the likelihool that at least a portion of these taxes will
be recovered at some future date, thus mitigating the impact of such abatements
on other municipal rate payers;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT
We hereby express our support for "An Act to Amend Poverty Abatement Law" and call upon
our legislative delegation to join with us in this support.
IN CITY COUNCIL
March 9, 2009
Motion Made and Seconded
for Passage
4rP sed
CITY CLERK
RFSOLVE
(TITLE,) Expressing the Support of the
City of Bangor for an Act to Amend
Poverty Abatement Law
Assigned to Councilor,