Sec. 1. 36 MRSA c. 105, sub-c. 11 is enacted to read:

SUBCHAPTER 11

ELDERLY RESIDENTS PROPERTY TAX DEFERMENT

§1131.__Municipal property tax deferment program

Each municipality that levies taxes on real property pursuant to this chapter may implement a program that provides for deferred payment of property taxes, referred to in this subchapter as "the program."

1.__Eligibility.__A person may participate in the program if the person:

A.__Is a resident of the taxing municipality;

B.__Pays property taxes to that municipality;

C.__Is at least 65 years of age; and

D.__Has an annual income less than or equal to 300% of the nonfarm income official poverty line, as defined by the federal Office of Management and Budget and revised annually in accordance with the United States Omnibus Budget Reconciliation Act of 1981, Section 673.

2.__Deferment of property taxes.__A person who is eligible to participate in the program may elect to pay property taxes at a level equal to those property taxes assessed on that person's residence at the time the person attained 65 years of age.__The assessment must remain at that level until the home is sold or transferred or the person chooses to stop participating in the program.

3.__Repayment of property taxes.__When the residence of a person participating in the program is sold or transferred or the person chooses to discontinue participating in the program, the total taxes deferred under subsection 2 must be paid within 30 days of the sale or transfer of the property or withdrawal from the program by the person selling or transferring the property or withdrawing from the program.__The person selling or transferring the property or withdrawing from the program shall notify the assessor for the taxing municipality at least 30 days prior to the sale, transfer or withdrawal.__The assessor shall prepare a statement for the person showing: