Sec. 1. 36 MRSA §943-A, as enacted by PL 1985, c. 364, §2, is repealed and the following enacted in its place:

§943-A.__Notice of right to apply for abatement or payment plan

1.__Notice of right to apply.__Each notice under section 942 or 1281 that is sent by a municipality or the State Tax Assessor to a person against whom taxes have been assessed must contain:

A.__A statement that the person may apply for an abatement of taxes or the establishment of a payment plan if the person cannot pay the taxes that have been assessed because of poverty or infirmity;

B.__A statement identifying property tax assistance programs for which the person may be eligible; and

C.__A statement of the availability of a payment plan developed by the taxing authority under subsection 2 and a statement that as long as the person is making a good faith effort to pay the delinquent taxes through a payment plan, the taxing authority will work with the person to prevent foreclosure.

2.__Payment plan.__Each municipality shall develop a procedure for establishing a payment plan for delinquent taxes based upon ability to pay with a person against whom taxes are assessed and who is unable to pay those taxes.__If a person against whom the taxes are assessed believes that the payment plan is unreasonable, that person may appeal to the municipal officers.__ The payment plan may set off against delinquent taxes amounts owed by the municipality to the person against whom taxes are assessed.__A payment plan may be assumed by a surviving spouse and may be adjusted according to the surviving spouse's ability to pay.

3.__Notice to heirs.__If a person against whom taxes have been assessed dies while occupying residential property against which those taxes have been assessed, the municipality shall make reasonable efforts to notify the heirs within 3 months of the death of the property owner of the right to develop a payment plan for repayment of delinquent taxes within a period not to exceed 2 years.

Sec. 2. 36 MRSA §945-A is enacted to read:

§945-A.__Recovery after foreclosure