An Act To Create an Agricultural Property Tax Reimbursement Program
Maine Legislature, Session 121, LD 0761
Committee: Taxation
Sponsors: MILLS

Legislative Document 
No. 761 
H.P.566 
House of Representatives, February 18,2003 
An Act To Create an Agricultural Property Tax Reimbursement 
Program 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative MILLS of Cornville. 
Printed on recycled paper 
'!r/~1I1.~ 
MILLICENT M. MacFARLAND 
Clerk 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRSA c. 918 is enacted to read: 
CHAPTER 918 
MAINE AGRICULTURAL PROPERTY TAX PROGRAM 
§6801. 
Definitions 
As 
used 
in this 
chapter, 
unless 
the 
context 
otherwise 
indicates, the following terms have the following meanings. 
1. 
Claim year. 
"Claim year" means the 12 calendar months 
immediately preceding the date on which eligible property taxes 
are assessed. 
2. 
Claimant. 
"Claimant" means 
a person or entity that 
makes a claim as a commercial dairy farm under this chapter. 
3. 
CQDDercial dairy farm. 
"Commercial dairy farm" means a 
single 
taxable entity, 
including 
a 
sole proprietor, 
married 
couple, partnership or corporation, that: 
A. 
Held 
a 
dairy 
farm 
operating permit 
under Title 
7, 
section 2902-A on the date of property tax assessment and 
for at least 6 calendar months during the claim year; 
B. 
Produced 
and 
sold at least 10,000 
pounds 
of 
milk 
products as defined in Title 7, section 2900 in each of 6 
calendar months of the claim year; 
C. 
Was domiciled in this State throughout the claim year; 
.QJ!.Q, 
D. 
If the entity is a corporation or partnership, was owned 
throughout the claim year exclusively by residents of the 
State. 
If a dairy farm is sold during the claim year, the entity that 
owns or leases the dairy farm real estate on the date of property 
tax assessment may qualify as a commercial dairy farm if its own 
experience when combined with that of its predecessor fulfills 
the conditions of paragraphs A to D. 
4,. 
Dairy farm real estate. 
"Dairy farm real estate" means 
those portions of real estate: 
Page I-LR082S(1) 
A. 
That were owned by or leased to a commercial dairy farm 
on the date of property tax assessment and for at least 6 
full calendar months of the claim year; 
B. 
That were necessary to support the commercial dairy 
farm's production of milk products as defined in Title 7, 
section 2900; and 
C. 
That were, in fact, predominantly used to support the 
production of milk products as defined in Title 7, section 
2900 by the commercial dairy farm during at least 6 months 
of the claim year. 
The raising and selling of cows, heifers, veal, hay, silage 
and 
other 
products 
associated 
with 
dairy 
farming 
are 
considered to support the production of milk products as 
defined in Title 7, section 2900 if the aggregate revenue 
generated by 
such activity is merely incidental to 
the 
farm's primary function as a producer of milk products. 
"Dairy farm real estate" may include the residence of any person 
who is regularly employed more than 30 hours a week in the dairy 
operations of the commercial dairy farm provided that such a 
residence is owned or leased by the commercial dairy farm and is 
located 
on 
the 
commercial 
dairy 
farm 
or 
adjacent 
to 
it. 
Resid.ential property may be included as dairy farm real estate 
only to the extent that it does not exceed 30% of the total value 
of the commercial dairy farm's dairy farm real estate. 
5. 
Eligible property taxes. 
"Eligible property 
taxes" 
means property taxes that have been assessed and paid on or after 
April L 
2003 on dairy farm real estate owned by a commercial 
dairy farm or leased to it. 
Eligible property taxes on real 
estate leased to the commercial dairy farm may not exceed the 
amount paid by the commercial dairy farm as rent for use of the 
real estate during the claim year. 
Taxes are not eligible property taxes until the taxes themselves 
and any associated interest and penalties have been fully paid. 
"Eligible property taxes" does not include the amount of any 
special assessment, any service charge or any charge, interest or 
penalty for delinquency. 
6. 
Real estate. 
"Real estate" means land, buildings and 
fixtures located in this State. 
"Real estate" does not include 
vehicles, movable equipment or other personal property. 
§6802. 
Reimbursement 
A commercial dairy farm is entitled to reimbursement frQ!l1 
the State of 50% of its eligible property taxes. 
§6803. 
Claim for reimbursement 
A claim for reimbursement pursuant to section 6802 must be 
filed within 
calendar 
months 
of 
the 
date 
when 
eligible 
property 
taxes 
are 
assessed. 
No 
more 
than 
one 
claim 
for 
reimbursement 
may 
be 
filed for 
each year 
in which eligible 
property taxes are assessed. 
A copy of the claim must be sent to 
the assessor for each taxing jurisdiction to which the eligible 
property taxes have been paid. 
The State Tax Assessor shall 
prescribe claim forms 
for 
reimbursement with instructions and 
make such forms available to qualified commercial dairy farms. 
§6804. 
Payment of claim 
Upon receipt of a timely and properly completed claim for 
reimbursement under section 6803, 
the State Tax Assessor shall 
certify 
that 
the 
commercial 
dairy 
farm 
is 
eligible 
for 
reimbursement and shall pay from the General Fund the amount 
claimed within 120 days after the claim is filed. 
§6805. 
Audit of claim 
The State Tax Assessor may audit any claim filed under this 
chapter and take any action provided in section 384. 
I f 
the 
State Tax Assessor determines that the amount of the claimed 
reimbursement 
is 
incorrect, 
the 
State 
Tax 
Assessor 
shall 
redetermine the claim and notify the claimant in writing of the 
redetermination and the State Tax Assessor's reasons. 
If the 
claimant has received reimbursement of an amount that the State 
Tax Assessor concludes should not have been reimbursed, the State 
Tax Assessor may issue an assessment for that amount wi thin 3 
years from the date the reimbursement claim was filed or at any 
time if a fraudulent reimbursement claim was filed. 
The claimant 
may seek reconsideration of the redetermination or assessment 
pursuant to section 151. 
§6806. 
Subsequent changes 
If, after a claim for reimbursement has been filed under 
section 6803, 
the property tax assessment associa,ted wi th that 
claim is reduced or abated, the claimant shall filer within 60 
days after receipt of the reduction or abatement an amended claim 
for reimbursement reflecting the reduction or abatement. 
I f 
a 
claimant has received reimbursement pursuant to section 6802 for 
property tax that is subsequently r~duced or abated, the claimant 
shall, wi thin 60 days of receipt of the reduction or_ 
abj~j;;~ment, 
refund to the State Tax Assessor the amount of the 
diff~1:enc~ 
between the 
reimbursement received and the reimbursement that 
would be due under this chapter based on the property tax as 
reduced or abated. 
If the claimant fails to make the refund 
within the 50-day period, the State Tax Assessor, within 3 years 
from 
the 
claimant's 
receipt 
of 
reimbursement, 
may 
issue 
an 
assessment for the am0unt that the claimant owes to the State Tax 
Assessor. 
The 
claimant 
may 
seek 
reconsideration 
of 
the 
assessment pursuant to section 151. 
SUMMARY 
This bill establishes the Maine 
Program. 
Under the bill, a commercial 
reimbursement from the State of 
50% 
Agricultural Property Tax 
dairy farm is entitled to 
of its eligible property 
taxes.