This tax rate is based on the ability of your woodland to grow timber. Please go to the Tree Growth Tax Page for more information. A similar tax is the Farm and Open Space Tax. Please go to the Farm and Open Space Tax Page for more information. The estate pays the tax.
Maine has no state estate tax.
If most of the inheritance is in woodland, this tax may force you to sell some of the land, or harvest it, to pay the taxes. Oftentimes, this results in undesirable liquidation of the property. There are ways to avoid this tax and its problems. If you are worried about the taxation and integrity of your woodland upon your passing, you should consult an accountant or lawyer to plan ahead. The parcel in consideration must have over 10 acres of commercial woodland.