[HISTORY: Adopted by the Select Board of the Town of Islesboro
as indicated in article histories. Amendments noted where applicable.]
[Adopted 1-8-2020]
With the exception of the receipt of tax payments from a taxpayer
who is a debtor in a case under Chapter 11, 12, or 13 of the United
States Bankruptcy Code (the "Code") at the time of that payment, or
who is making a payment as provided in a bankruptcy plan approved
by a United States Bankruptcy Court (a "bankruptcy court"), the Islesboro
Select Board, upon request of the Tax Collector and/or Treasurer of
said municipality, hereby require and direct, pursuant to 36 M.R.S.
§ 906, that any payment received as payment for any property
tax be applied against outstanding or delinquent taxes due on that
property in chronological order beginning with the oldest unpaid tax
bill, provided, however, that no such payment shall be applied to
any tax for which an abatement application or appeal is pending unless
approved in writing by the taxpayer.
Unless an order of the bankruptcy court, or a bankruptcy plan
confirmed by the bankruptcy court, provides otherwise, the above policy
shall apply to payments received from third parties who are making
payments on taxes assessed against taxpayers who are debtors in bankruptcy
cases, and shall also apply to payments received from taxpayers who
are debtors in a Chapter 7 bankruptcy case. In all other instances,
the Tax Collector and/or Treasurer of the Town of Islesboro shall
accept and apply payments towards property taxes assessed by the Town
received from a taxpayer who is or has been a debtor in a bankruptcy
case as follows:
A.
If, at the time of that payment, the taxpayer is a debtor in a case
which is then open under Chapter 11, 12 or 13 of the Code in which
a plan has not been confirmed by the bankruptcy court, and in which
no order has been entered by the bankruptcy court has been entered
providing otherwise, then the payment shall be credited against taxes
which have accrued by assessment after the date of the filing of the
bankruptcy case in chronological order beginning with the oldest such
post-filing assessment, provided, however, that no such payment shall
be applied to any tax for which an abatement application or appeal
is pending unless approved in writing by the taxpayer; and
B.
If, at the time of that payment, the taxpayer is or has been a debtor
in a Chapter 11, 12, or 13 case in which a bankruptcy plan has been
approved by the bankruptcy court, or in which an order has otherwise
been entered by the bankruptcy court, which provides for how such
payments are to be applied, then the payment must be applied as provided
in that plan or order.
