Municipal Officers Can Pass Certain Ordinances

Thursday, March 7, 2019

Even in towns where all legislative authority rests with town meeting, the Selectmen or Town Council have authority to pass certain kinds of ordinances. Following is a list of those topics: 

Traffic Control Ordinances – Title 30-A M.R.S. § 3009 allows the municipal officers to enact ordinances governing: 

  • Pedestrian traffic, including the use and maintenance of sidewalks and crosswalks. (Yes, the municipal officers can pass an ordinance requiring property owners to clear snow from sidewalks.)
  • The operation of vehicles in the public ways and on publicly owned property. (Towns have used this to pass Jake brake ordinances, motorcycle noise ordinances, and various other issues that aren’t covered by state law).
  • Parking in public ways or public parking areas.

Extension of Moratoria – While town meeting must enact the original moratorium, the municipal officers may act to extend the moratorium for additional 180-day periods upon a finding that the conditions which called for the moratorium still exist. (30-A M.R.S. § 4356)

Cable TV Ordinances – The municipal officers may enact ordinances governing the franchising and regulation of cable TV within the municipal boundaries. (30-A M.R.S. § 3008)

General Assistance Ordinances – These ordinances govern the processing and application requirements for receiving general assistance from the municipality. Each year, the municipal officers must also amend the local maximum levels of assistance. (22 M.R.S. § 2305) (Note that Maine Municipal Association provides a model ordinance as well as annual suggested maximums.)

Local Snowmobile and ATV Access Routes – Under state law, snowmobiles and ATVs may not travel within the public way. However, 12 M.R.S. 13106-A(5)(G) gives the municipal officers authority to pass ordinances allowing for such travel if they determine that it can be done safely.

How to Handle Tax Foreclosures When the Property Has an IRS Lien

Friday, March 1, 2019

After a municipality goes through the statutory foreclosure process because of delinquent taxes on a piece of real estate, it normally takes the property free and clear of any pre-existing liens, mortgages, executions of judgment, or other clouds on the title to real estate. The exception to this is when the property has an IRS lien against it for unpaid income taxes by the property owner. There is, however, a method for dissolving those liens if the proper procedure is followed. When the lien is dissolved, the municipality will own the property free and clear of the IRS lien at the time that it takes title. 

At the time of foreclosure, the tax collector should send a copy of the lien certificate to the IRS at the same time it is recorded with the registry of deeds. The municipality should also send a copy of the notice of impending foreclosure to the IRS itself. The way to extinguish an IRS lien against the property is by the municipality sending the IRS a copy of a notice pursuant to 26 U.S.C.A. § 7425. Samples of the notice can be found on the IRS website (IRS publications 786 and 4235). The statutory notice will extinguish the IRS lien as long as it is sent to the IRS by certified mail at least 25 days prior to the date of automatic foreclosure. It is best to send the section 7425 notice to the IRS at the same time that the 30–45 day notice of pending foreclosure is sent. The IRS has a redemption period of 120 days following the date that the municipality takes title through the foreclosure process. Thus, it would be wise to wait the 120 days after taking possession before selling the property. 

While it is not clear that the IRS would foreclose on a lien against property that is no longer owned by a taxpayer, but rather is owned by the municipality, obviously clean title to the property is preferred, and the sending of this notice is the way to achieve that.