Maine Municipal Tax Collectors' & Treasurers' Association
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Posted by Leann Beal, Ellsworth, March 15, 2010:

The City of Ellsworth currently has an Ordinance in place to dispose of any tax acquired property through the sealed bid method.  This year we acquired 49 timeshare units.  After completing 2 rounds of the sealed bid process we still have 40 units. We are looking to amend our ordinance to allow us to sell these units (or any other surplus property in future years) to individuals without going through the sealed bid process. For example, if 2 months from now someone wanted to buy a piece of property owned by the City we could sell it to them for the amount of taxes owed on the account.  I am wondering if any towns/cities currently do this and what language you may use in the Ordinance.

Responses: Town of Castine has a Town Meeting/Selectmen/Town Manager form of government.  Although it has been 30 years since the town last acquired property though tax lien foreclosure, we have an article at the Town Meeting each year for the town to adopt.  “To see if the Town will authorize the Board of Selectmen and the Treasurer, on behalf of the Town, to sell or lease any real estate it may acquire of foreclosed tax mortgages on such terms as they may deem advisable and execute quitclaim deeds for the same.” I know it is not an ordinance as you were looking for, but that is how we do it.  (Karen Motycka, Castine)

We do it by town meeting as well: (Lewis Pinkham, Milbridge)

Article 7

To see if the Town will vote to authorize the Board of Selectmen on behalf of the Town to convey any tax acquired property to the principal owner or taxpayer from whom it was acquired upon payment to the town of an amount equal to the amount owed which includes all taxes, interest and costs they owed upon said property. The taxes shall be computed as though the town has not taken the property and as though the property has been assessed to the prior owner until the time of repurchase. The Selectmen may offer the property for sale through sealed bids to the highest bidder. Notice of such property sale will be advertised for three consecutive weeks before the last day that bids may be received in the local paper having a circulation in the Town of Milbridge once a week. All such offers shall be made with the rights of the Selectmen to reject any and all bids. If no bids are received for at least seventy-five (75) percent of the assessed value offered for sale, then the Selectmen shall reject all bids. If the property is offered for sale again the Selectmen may accept any amounts therefore in their discretion. The Selectmen may in their discretion retain for the Town any tax-acquired property, which they feel would be beneficial to the Town to be used for municipal purposes.

Dedham has a yearly article at Town Meeting that reads "To see if the Town will authorize the Selectmen to dispose of tax acquired property as deemed in the best interest of the Town." We also have a policy outlining the process for the Selectmen. (Michelle Begin, Dedham)