(a) Annually, the commissioner shall pay the property tax adjustment amount determined under section 6066 of this title, related to a homestead owned by the claimant. The payment shall be made to the municipality in which the housesite is located, for credit to the claimant for homestead property tax liabilities, on July 1 for timely-filed claims and on September 15 for late claims filed by September 1. The tax adjustment of a claimant who was assessed property tax by a town which revised the dates of its fiscal year, however, is the excess of the property tax which was assessed in the last 12 months of the revised fiscal year, over the adjusted property tax of the claimant for the revised fiscal year as determined under section 6066 of this title, related to a homestead owned by the claimant.
(b) The commissioner shall also pay to the municipality, for credit to the taxpayer for homestead property tax liabilities, any income tax overpayment remaining after allocation under section 3112 of this title and setoff under section 5934 of this title, which the taxpayer has directed to be used for payment of property taxes.
(c) Claim and refund amounts unresolved by September 15 shall be paid to the municipality at the time of final resolution, including adjudication if any.
(d) For late claims, filed after April 15, the property tax adjustment amount shall be reduced by $15.00, which shall be paid by the commissioner to the municipality for the cost of issuing a new property tax bill to the claimant.
(e) At the time of payment to the municipality, the commissioner shall notify the taxpayer of the property tax adjustment amount determined under subdivision 6066(a)(1) of this title; the amount determined under subdivision 6066(a)(3) of this title; any additional adjustment amounts due the homestead owner under section 6066 of this title; the amount of income tax refund, if any, paid to the town for homestead property tax liabilities; and any late-claim reduction amount.
(f) Property tax bills.
(1) For amounts paid to municipalities on July 1, municipalities shall include on the homestead property tax bill notice to the taxpayer of the total amount allocated to payment of homestead property tax liabilities and notice of the balance due. By a majority of those voting at an annual or special meeting called for that purpose, the voters of a municipality may elect to apply the amount allocated under this chapter to current-year property taxes to the taxpayers' property tax installments in order or pro rata.
(2) For amounts paid to municipalities on or after September 15, municipalities shall issue a new homestead property tax bill with notice to the taxpayer of the total amount allocated to payment of homestead property tax liabilities and notice of the balance due.
(3) The payment received by the municipality from the state for credit to the taxpayer shall be credited first to current-year property tax on the homestead parcel, next to current-year homestead parcel penalties and interest, next to any prior year homestead parcel penalties and interest, and last to any prior year property tax on the homestead parcel. No payment shall be allocated to a property tax liability for any year after the year for which the claim or refund allocation was filed. If the payment received by the municipality exceeds the amount allocated under this subsection, the municipality shall refund the excess to the taxpayer, without interest, within 60 days of receipt by the municipality. No municipal tax-reduction incentive for early payment of taxes shall apply to any payment made to a municipality by the state under this chapter. (Added 1999, No. 49, § 37, eff. Jan. 1, 2000, § 37a, eff. Jan. 1, 2001; amended 2001, No. 63, § 163d; 2001, No. 144 (Adj. Sess.), § 18, eff. June 21, 2002; 2003, No. 70 (Adj. Sess.), § 49, eff. March 1, 2004; 2005, No. 185 (Adj. Sess.), § 3; eff. Jan. 1, 2007.)