Behind on Property Taxes in Maine?

Back Taxes in Maine: Your Options

This page explains what happens in Maine when property taxes on land go unpaid. In Maine your town or city collects the tax, not the county. The page covers the 30-day demand, the tax lien certificate, the 18-month redemption period, automatic foreclosure, and what happens to money left over when the town sells.

The tax lien works like a mortgage in favor of the town. You keep the land during the redemption period and can pay the lien or sell the land. If the lien is not paid in time, the town gets title with no court case. This page is general information, not legal or tax advice. For your own parcel, ask your town tax collector or treasurer.

When Maine property taxes go unpaid

Each town sets its own due dates, so check your bill. The lien process starts later. After 8 months and within one year after the tax was committed, the tax collector may send a notice demanding payment within 30 days. The notice claims a lien on the real estate (36 M.R.S. §942).

Penalties, interest and costs

Interest and costs are added to unpaid taxes and follow the lien. The demand carries a small fee plus certified mail costs, and later notices add more (36 M.R.S. §942, §943). Your town sets the interest rate within state rules, so ask the tax collector for the exact amount owed.

What the town does next: the tax lien certificate

If the tax is still unpaid after the 30 days, the tax collector records a tax lien certificate at the county registry of deeds within the next 10 days (36 M.R.S. §942). Recording creates a tax lien mortgage to the town, with priority over other mortgages and liens (36 M.R.S. §943).

If the lien, interest and costs are not paid within 18 months after the certificate is recorded, the lien is foreclosed automatically and the right to redeem ends. The treasurer must send a notice 30 to 45 days before that date to the person named on the lien and to each mortgage holder (36 M.R.S. §943).

Redemption

You can pay the lien, interest and costs at any time during the 18 months. The town then records a discharge (36 M.R.S. §943). Ask for the exact foreclosure date. If the town did not send the required notice on time, the law gives extra time to redeem after notice is sent.

If the town sells foreclosed land

When a town sells tax-acquired property to someone other than the former owner, it must notify the former owner at least 90 days before listing, list it with a licensed real estate broker, and sell at the highest price it can get within 12 months. It must pay the former owner the sale proceeds left after taxes, interest, fees and its costs (36 M.R.S. §943-C). A town may also agree to sell the land back to the former owner.

Your options if you are behind

Your best choice depends on the land, the amount owed and the foreclosure date.

• Pay the full amount owed, with penalties, interest and costs, before the next step in the process.
• Ask the tax office whether it offers a payment plan, and get the terms in writing.
• Sell the land before the deadline. The back taxes are paid from the sale at closing.
• If the land was inherited, gather the death certificate and any will or probate papers early, because a sale needs someone with authority to sign.
• If the numbers are large or a deadline is close, talk to a real estate attorney.

Selling land with back taxes in Maine

You can sell land with a recorded tax lien before the lien forecloses. At closing, the closing agent gets a payoff from the town and pays it from the sale price. The town records a discharge and the buyer gets clear title.

If the foreclosure date is close, tell your buyer and closing agent right away.

EasyLotBuyer buys vacant land in Maine for cash, including lots with back taxes, liens, title issues or no road access, and land from heirs and estates. We make a cash offer within 24 hours, charge no fees or commissions, and pay the closing costs. We can close in as few as 7 days. Back taxes are paid at closing from the sale.

Where to check your tax status

Your town or city tax collector or treasurer has the bill, lien dates and payoff. Recorded lien certificates and discharges are at the county registry of deeds. Maine Revenue Services has general property tax information and municipal contacts.