An Act To Assist American Mills with Tree Growth Management Plan Products
Maine Legislature, Session 121, LD 1172
Committee: Taxation
Sponsors: JACKSON, MARTIN, EDER, JOY, LUNDEEN, SMITH, KNEELAND, STANLEY
Amends: 36 MRSA §574-B

Legislative Document 
No. 1172 
H.P.869 
House of Representatives, March 5, 2003 
An Act To Assist American Mills with Tree Growth Management 
Plan Products 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative JACKSON of Fort Kent. 
Cosponsored by Senator MARTIN of Aroostook and 
17/~111.~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: EDER of Portland, JOY of Crystal, LUNDEEN of Mars Hill, SMITH of Van 
Buren, Senators: KNEELAND of Aroostook, STANLEY of Penobscot. 
Printed on recy<ied poper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRSA §574-B. sub-§2. as enacted by PL 1989, c. 555, 
§16, is amended to read: 
2. 
Evidence of compliance with plan. 
The landowner 
mHs1= 
shall comply with the plan developed under subsection 1, and mHs1= 
shall submitT every 10 yearsL 
to the municipal assessor ln a 
municipality or 
the 
State 
Tax 
Assessor 
for 
parcels 
in 
the 
unorganized terri tory, a statement from a licensed profess ional 
forester that the landowner is managing the parcel according to 
schedules in the plan required under subsection 1; aBa 
Sec. 2. 36 MRSA §574-B, sub-§3, as repealed and replaced by PL 
2001, c. 603, §4, is amended to read: 
3. 
Transfer of ownership. 
When 
land taxed 
under 
this 
subchapter is transferred to a new owner, within one year of the 
date of transfer, the new landowner must file with the municipal 
assessor or the State Tax Assessor for land in the unorganized 
territory one of the following: 
A. 
A 
sworn 
statement 
indicating 
that 
a 
new 
forest 
management and harvest plan has been prepared; or 
B. 
A statement from a licensed professional forester that 
the 
land is being managed 
ln accordance with 
the plan 
prepared for the previous landowner. 
The new landowner may not harvest or authorize the harvest of 
forest products for commercial use until a statement described in 
paragraph A or B is filed with the assessor. 
A person owning 
timber rights on land taxed under this subchapter may not harvest 
or authorize the harvest of forest products for commercial use 
until a statement described in paragraph A or B is filed with the 
assessor. 
Parcels of land subject to section 573, subsection 3, paragraph B 
or C are exempt from the requirements under this section. 
For the purposes of this 
means 
the 
transfer 
of 
ownership of the land or 
rights on the landT; and 
subsection, "transferred to a new owner" 
the 
controlling interest 
in 
the 
fee 
the controlling interest in the timber 
Sec. 3. 36 MRSA §574-B. sub-§4 is enacted to read: 
4. 
Owners with more than 100,000 acres. 
Beginning in 2004, 
an owner of more than 100,000 acres classified under this chapter 
shall demonstrate annually that a portion of the timber harvested 
Page l-LR0667(1) 
from the eligible land has been sold or transferred to a mill 
located in the United States. 
For 2004, the portion of timber 
sold or transferred to a mill located in the United States must 
be at least 50 q". 
For 2005, the portion must be at least 60°0. 
For 2006, 
the percentage must be at least 70°<,. 
For 
2007 
and 
succeeding years, the portion must be at least 80 Qo. 
If an owner 
does not demonstrate the percentage of sales requirement under 
this subsection, 
the owner shall pay 
a 
penalty equal to the 
difference between the taxes assessed on the property under this 
subchapter and the taxes that would have been assessed if the 
land was not classified under this subchapter. 
SUMMARY 
This bill requires that a portion of the timber harvested 
from land classified under the Maine Tree Growth Tax Law be sold 
or transferred to a mill located in the United States if the 
landowner owns at least 100,000 acres. 
The portion must be at 
least 50 qo in 2004,60°0 in 2005, 70 Qb in 2006 and 80°0 in 2007 and 
subsequent 
years. 
The 
bill 
imposes 
a 
penalty 
if 
those 
percentages are not maintained and equal to the amount of the tax 
benefit.