The resulting property taxes are usually lower than regular property taxes that base their land valuation on the likely price of the land if offered on the real estate market. Instead of market valuation, Farm and Open Space base land values on current use. This type of valuation is the same as the Tree Growth Tax Law . The State of Maine offers Farm and Open Space taxes to encourage the preservation of farmland and open space.
Gross income can include that produced for household use.
If your past income does not qualify, you can get a provisional qualification for 2 years. If you do not qualify after 2 years, you must pay back the tax savings with interest. The applicant bears the burden of proof for acceptance. The Farm Tax is based on the current value of agriculture on the land. The assessor considers farmland rentals, farmer to farmer sales, soil types and quality, commodity values, and topography.