An Act to Preserve Maine's Working Waterfront
Maine Legislature, Session 122, LD 1972
Committee Amendment CA_A_S602 (Senate)
Amends: 36 MRSA §271

COMMITTEE AMENDMENT ,A" to S.P. 759, 
Act To Preserve Maine's Working Waterfront" 
L.D. 1972, Bill, "An 
Amend the bill by striking out everything after the title 
and inserting in its place the following: 
'Sec. 1. 36 MRSA §271, sub-§2, 1[A, as amended by PL 1993, c. 
664, §12, is further amended to read: 
A. 
Hear and determine appeals according to the following 
provisions of law: 
(1) 
The tree growth tax law, chapter 105, subchapter 
U-A 2-A; 
(2) 
The 
farm 
and 
open 
space 
law, 
chapter 
105, 
subchapter X lQ; 
(3) 
As provided in section 843; 
(4) 
As provided in section 844; 
(5) 
Section 272: aRe 
(6) 
Section 2865; and 
(7) 
The 
current 
use 
valuation of certain working 
waterfront land law, chapter 105, subchapter 11; 
Page l-LR3047(2) 
COMMITTEE AMENDMENT 
i\. tll!·· 
COMMITTEE AMENDMENT "A" to S.P. 759, L.D. 1972 
Sec. 2. 36 MRSA c.IOS, sub-c. II is enacted to read: 
SUBCHAPTER 11 
CURRENT USE VALUATION OF CERTAIN WORKING WATERFRONT LAND 
§1141. 
Purpose 
It is declared that it is in the public interest to 
encourQge the preservation of working wQterfront land and to 
prevent the conversion of working wQterfront land to other uses 
as the result 9f economic pressures caused by the assessment of 
that 
land. 
for 
purposes 
of 
property 
taxation, 
at 
values 
incompatible with its use as working waterfront land and that the 
necessity in the public interest of 
the 
enactment 
of this 
subchapter in accordance with the Constitution of Maine. Article 
IX, Section 8 is a matter of legislative determination. 
§1142. 
Definitions 
As used in this subchapter. unless the context otherwise 
indicates. the following terms have the following meanings. 
1. 
Coaercial 
aquaculture 
productiop.. 
"Commercial 
ag;uaculture production" has the same meaning as in section 2013, 
subsection I. paragraph A-I. 
2. 
COllllllercial 
fiShing. 
"Commercial 
fishing" 
means 
harvesting or processing. or both, of wild marine organisms with 
the intent of disposing of them for profit or trade in commercial 
channels. 
3. 
Commercial 
fishing activities. 
"Commercial 
fishing 
activities" 
means 
commercial 
a~uQculture 
production 
and 
commercial fishing. 
"Commercial fishing activities" does not 
include retail sale to the general public of marine organisms or 
their byproducts. or other products or byproducts of commercial 
ag;uaculture production or commercial fishing. 
4. 
Excess valuation factor. 
"Excess valuation 
factor" 
means a market-based influence on the determination of the just 
value of working waterfront land that would result in a valuation 
that is in excess of thQt land' s current use value. 
"Excess 
vQluQtion factor" includes, but is not limited to, aesthetic 
factors, 
recreational 
water-use 
factors, 
residential 
housing 
factors 
and 
nonresidential 
development 
factors 
unrelated 
to 
working waterfront uses. 
5. 
Head of tide. 
"Head of tide" means the inland or 
upstream limit of water affected by the tide. 
COMM/rrEE AMENDMENT 
I I 
'I 
COMMITTEE AMENDMENT "A" to S.P. 759, L.D. 1972 
6. 
Intertidal 
zonj!. 
"Intertidal 
zone" 
means 
all land 
affected by the tides between the mean high water mark and the 
mean low-water mark. 
7. 
Marine organism. 
"Marine organism" means an animal or 
plant that inhabits intertidal zones or waters below head of tide. 
8. 
Suwort the conduct of commercial fishing activities. 
"Support the conduct of commercial fishing activities" means: 
A. 
To provide access to the water or the intertidal zone 
over waterfront property to persons directly engaged in 
commercial fishing activities; or 
B. 
To conduct commercial business activities that provide 
goods or services that directly support commercial fishing 
activities. 
9. 
Used predominantly. 
"Used predominantly" means 
used 
more 
than 
90% 
for commercial fishing activity, 
allowing for 
limited uses for noncommercial or nonfishing activities if those 
activities are 
minor 
and purely incidental 
to 
a 
property's 
predominant use. 
10. 
Used primarily. 
"Used primarily" means used more than 
50% for commercial fishing activity. 
11. 
Working waterfront land. 
"Working waterfront land" 
means a parcel of land, or a portion thereof, abutting water to 
the head of tide or land located in the intertidal zone that is 
used primarily or used predominantly to provide access to or 
support 
the 
conduct 
of 
commercial 
fishing 
activities. 
For 
purposes of this subchapter, a parcel is deemed to include a unit 
of real estate notwithstanding the fact that it is divided by a 
road, way, railroad or pipeline. 
§1143. 
Owner's application 
An owner or owners of land may elect to apply for taxation 
under this subchapter for the tax year beginning April 1, 2007 
and for subseguent tax years by filing with the assessor the 
schedule provided for in section 1147, subsection 1. 
§1144. 
Administration; rules 
The State Tax Assessor may adopt rules necessary to carry 
out this 
subchapter. 
Rules 
adopted under 
this 
section are 
routine technical rules as defined in Title 5, 
chapter 375, 
subchapter 2-A. 
COMMITTEE AMENDMENT 
.;i 
COMMITTEE AMENDMENT .. A 
.. to S.P. 759, L.D. 1972 
§1145. 
Current use valuation of working waterfront land 
The municipal assessor, chief assessor or State Tax Assessor 
for the unorganized territory shall 
esta1:lli~h the current use 
value per parcel for property classified as working waterfront 
land. The current use value of working waterfront land is the 
sale price that the parcel would command in the marketplace if it 
were required to remain in the use currently being made of the 
parcel as working waterfront land. 
The assessor may use one of 
the following methods to determine current use value. 
1. 
COll!Parative valuation. 
The assessor may determine the 
current use value of working waterfront land by considering: 
A. 
All excess valuation factors that affect the land's just 
value: 
B. 
The 
comparative 
valuation 
of 
inland 
commercial 
enterprises that are being assessed on the basis of a use 
that is similar to the use of the working waterfront land 
with respect to function, access and level of activity: and 
C. 
Any other factor that results in a determination of the 
current use value of the working waterfront land. 
2. 
Alternative valuation. 
If there is insufficient data to 
determine the current use value of working waterfront land under 
subsection 1, 
the assessor 
may 
reduce the ordinary assessed 
valuation of the land, without regard to permanent protection 
restrictions and as reduced by the certified ratio, by applying 
the 
percentage 
reductions 
for 
which 
the 
land 
is 
eligible 
according to the following categories. 
At 
Working waterfront land used predominantly as working 
waterfront land is eligible for a reduction of 20%. 
B. 
Working 
waterfront 
land 
used 
primarily 
as 
working 
waterfront land is eligible for a reduction of 10%. 
C. 
Working waterfront land that is permanently protected 
from a change in use through deeded restrictions is eligible 
for the reduction described in paragraph A or 
B and an 
additional reduction of 30%. 
§1146. 
Assessment of tax 
An assessment of working waterfront land for purposes of 
property taxation must be based on the value determined in 
accordance with this subchapter. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT .. A" to S.P. 759, L.D. 1972 
§1147. 
Schedule: qualification 
1. 
Schedule. 
The Qwner or owners of waterfront land may 
apply for taxation under this subchapter by submitting a signed 
schedule in du,plicate. on or before April 1st of the year in 
which the Qwner Qr owners wish to first subject such land to 
taxation under this subchapter. to the assessor upon a form to be 
prescribed 
by 
the 
State 
Tax 
AssessQr 
that 
must 
contain 
a 
description of the parcel. together with a map identifying the 
location 
and 
bQundaries 
of 
the 
working 
waterfront 
land. 
a 
descriptiQn of the manner in which the land is used primarily for 
commercial fishing activities and other information the assessor 
may require to aid in the determination of what portion of the 
land qualifies for classification as working waterfront land. 
The schedule must be signed and consented to by each person with 
an Qwnership interest in the land. Classification of the land as 
working waterfront land may not be inconsistent with the use 
prescribed in the comprehensive plan. growth management program 
or zQning Qrdinance of the municipality. 
In defining the working waterfront land area contained within a 
parcel. 
land used primarily for cQmmercial fishing activities 
must be included. together with any remaining portion of the 
parcel that is not used for purposes inconsistent with commercial 
fishing ectiyities as 
long 
eS 
the 
rema1n1ng portion is not 
sufficient in dimensiQn to meet the requirements for a minimum 
lot as provided by either the stete minimum lot requirements as 
prescribed by Title 12. section 4807 A or Title 38. chepter 3. 
subchapter 1. article 2-B. as appliceble. or the minimum lot size 
provided by the zoning ordinence or zoning map perteining to the 
area in which the remeining portion is lQcated. 
2. 
Classification. 
The 
as~essor shall determine what land 
meets the requirements of this subchapter end Shell clessify such 
land 
as 
working 
weterfront 
land 
in 
accordance 
with 
this 
subchapter. 
The e§sessor Shell file, in the municipal office of 
the tQwn in which the working waterfront land is located. the 
original schedule and the valu,e of the working waterfront land as 
esteblished under this subchapter and the value at which the 
working waterfront land wQuld heve been assessed had it not been 
classified under this subchapter. 
3. 
Notification of 
determination. 
The 
assessor 
shall 
notify 
the 
owner 
or 
owners 
in 
writing 
of 
the 
assessor's 
determinatiQn as to the appliCability of this subchapter by June 
1st 
following 
receipt 
of 
'a 
signed 
schedule 
meeting 
the 
requirements of this section. The assessor's notification must 
state whether the application has been accepted or denied, and if 
denied the assessQr shell state the reasons for the denial and 
COMMITTEE AMENDMENT 
\" ti \' 
COMMITTEE AMENDMENT "A" to S.P. 759, L.D. 1972 
provide the owner or Qwners an opportunity to amend the schedule 
to conform tQ the requirements Qf this subchapter. 
4. 
Investigation. 
The 
assessQr or the assessor's duly 
author ized representative may enter and examine the lands under 
this subchepter for tax purposes and may eXamine any information 
submitted by the owner or owners. 
UpQn 
notice 
in 
writing 
by 
certified mail. 
return 
receipt 
requested. 
any Qwner or Qwners shalL within 60 
days of the 
receigt of such nQtice. 
resgond to such written questions or 
interrogatories as the assessor may consider necessary to obtain 
material 
informatiQn 
about 
those 
lands. 
If 
the 
assessor 
determines that it is not reasonable to obtain the required 
material infQrmation regarding those lands thrQugh such written 
questions or interrQgatories. the assessQr may require any owner 
or Qwners. 
upon nQtice in writing by certified mail. 
return 
receigt requested, or by such other method as provides actual 
notice, to appear before the assessor at such reasonable time and 
place as the assessor may designate and answer such questions or 
interrogatQries as the a§§essor may consider necessary to obtain 
material information a,hQut those land§. 
5. 
Owner obligation. 
If the owner or owners of any land 
subject to taxation under this subchapter fail to submit the 
schedules under this section, or fail to respond, within 60 days 
of 
receipt, 
to written questions 
or interrogatories 
of 
the 
assessQr, Qr fail within 60 days of receipt of notice as provided 
. in this section tQ 
appear before the a§sesSQr tQ 
respond to 
questiQns 
or interrQgatories, or fail to provide 
information 
after nQtice duly received as provided under this section, that 
owner or tho§e owners are deemed to have waived all rights of 
appeal. 
It is the obligation of the owner or owners to report to the 
assessor 
any disqualifying change of use of land subject to 
taxatiQn under thi§ subchagter by the end of the tax year in 
which the change occurs. 
If the owner Qr owners fail tQ report 
any disqualifying change of u§e Qf land to the assessor, the 
asse§sor §hell asses§ those taxes that should have been paid, 
shall assess the penalty provided in section 1148 
and shall 
asse§§ an additional penalty of 
25~ of the foregoing penalty 
amount. The a§sessQr may waive the additional genalty for cause. 
6. 
Recertification. 
The assessor shall determine annually 
whether any classified land continues tQ meet the requirements of 
this subchagter. 
Each year the asses§or shall recertify any 
classificQtiQn§ 
made 
under 
this 
subchagter 
and 
update 
the 
information required under subsectiQn 1. If any classified land 
no lQnger meets he requirements of thi§ subchapter, or the owner 
COMMITTEE AMENDMENT 
\\, It t. 
COMMITTEE AMENDMENT "A" to S.P. 759, L.D. 1972 
or owners request withdrawal of the land from the classification 
in writing, the assessor shall remove the classification. 
§1148. 
Recapture penalty 
1. 
Assessor determination: owner reqyest. 
If the assessor 
determines that land subject to this subchapter no longer meets 
the reguirements of this subchapter, the assessor must withdraw 
the land from taxation under this subchapter. 
The 
owner or 
owners of land subject to this subchapter may at any time request 
withdrawal of any land from taxation under this subcha]?ter by 
certifying in writing to the assessor that the land is no longer 
to be classified under this subchapter. 
2. 
Withdra .... al of portion. 
In the case of withdrawal of a 
portion of the working waterfront land, the owner or owners. as a 
condition of withdrawal, shall file with the assessor a schedule 
including the information required under section 1147, subsection 
showing the area withdrawn and the area remaining under this 
subcha]?ter. 
3. 
Penalty. 
If land is withdrawn from taxation under this 
subchapter, the assessor shall impose a penalty upon the owner or 
owners. 
The penalty is the greater of: 
A. 
An 
amount egual to the taxes that would have been 
assessed on the first day of April for the 5 tax years. or 
any lesser number of tax years starting with the year in 
which the property was first classified. 
preceding such 
withdrawal had such real estate been assessed in each of 
those years at its just value on the date of withdrawal less 
all taxes paid on that real estate over the preceding 5 
years. and interest at the prevailing municipal rate from 
the date or dates on which those amounts would have been 
payable: and 
B. 
An amount computed by multiplying the amount. if any. by 
which the fair market value of the real estate on the date 
of withdrawal exceeds the 100% valuation of the real estate 
pursuant to this subchapter on the preceding April 1st by 
the following rates: 
(1) 
If the real estate was subject to valuation under 
this subcha]?ter for 10 years or less prior to the date 
of withdrawal, the rate is 30%; and 
, 
(2) 
If the real 'estate was subject to valuation under 
this subchapter for more than 10 years prior to the 
date 
of 
withdrawal, 
the 
rate 
is 
that 
percentage 
obtained by subtracting 1% from 30% for each full year 
COMMITTEE AMENDMENT 
\~. tl~· 
COMMITTEE AMENDMENT ·4 II to S.P. 759, L.D. 1972 
beyond 10 years that the real estate was subject to 
valuation under this subchapter prior to the date of 
withdrawal until a rate of 20~ is reached. 
For 
purposes 
of 
this 
section, 
just 
value 
at 
the 
time 
of 
withdrawal is the assessed just value of comparable property in 
the 
municipality 
adjusted 
by 
the 
municipality I s 
certified 
assessment ratio. 
4. 
Assessment and collection of penalties. 
The penal ties 
for withdrawal must be paid upon withdrawal to the tax collector 
as 
additional property taxes. 
Penalties may 
be 
assessed and 
collected as supplemental assessments in accordance with section 
713-B. 
5. 
Eminent domain. 
A penalty may not be assessed under 
this section if the withdrawal of the parcel is occasioned by a 
transfer to the State or other entity holding the power of 
eminent domain resulting from the exercise or threatened exercise 
of that power. 
6. 
Relief from regyirements. 
Upon withdrawal, the land is 
relieved of the requirements of this subchapter immediately and 
is returned to taxation under 
the statutes relating to 
the 
taxation of real property: to be so taxed on the following April 
lil.... 
7. 
Reclassification as QPen space. 
No 
penal ty may 
be 
assessed upon the withdrawal of land from taxation under this 
subchapter if the owner or owners apply for and are accepted for 
classification of that land as open space land under subchapter 
~ 
8. 
Report of penalty. 
Any municipality that receives a 
penalty for the withdrawal of land from taxation under this 
subchapter shall report to the State Tax Assessor the total 
amount received in that reporting year on the municipal valuation 
return form described in section 383. 
§1149. 
Enforcement 
A tax lien is created to secure the payment of the penalties 
provided in section 1148. 
The lien may be enforced in the same 
manner and has the Same effect as liens on real estate created by 
section 552. 
§1150. 
Transfer of ownership 
If land taxed under this subchapter is transferred to a new 
owner or owners, in order to maintain the classification, within 
COMMITTEE AMENDMENT 
,.,
COMMITTEE AMENDMENT .. A 
.. to S.P. 759, L.D. 1972 
one year of the date of transfer, the new owner or owners must 
file with the assessor a new application and a sworn statement 
indicating that the transferred parcel continues to meet the 
requirements of section 1142, subsection 11. 
§115l. 
Appeals and abatements 
The denial of an application or an assessment made under 
this subchapter is subject to the abatement procedures provided 
by section 841. Appeal from a decision rendered under section 841 
is to the State Board of Property Tax Review. 
§1152. 
Analysis and report 
1. 
AnAlysis. 
The State Tax Assessor, in consultation with 
municipal assessors, the director of the Land for Maine's Future 
Program within the Executive Department, State Planning Office, 
representatives of working waterfront organizations and other 
interested parties, shall collect and analyze the sales prices of 
all actual sales that occur in the State of waterfront land that 
is subject to restrictions on that land's use that are legally 
enforceable and prohibit or substantially restrict development 
that is not commercial fishing activity or commercial activity 
that is the functional equivalent of commercial fishing activity. 
2. 
Re,port. 
By January 15th of each even-numbered year, the 
State Tax Assessor shall submit a report to the joint standing 
committee of the Legislature having jurisdiction over taxation 
matters that identifies the total value of each sale of working 
waterfront land and the value of each sale that is reasonably 
related to the working waterfront land, that compares the sale 
price of the working waterfront land with the just value of the 
same land and that categorizes the sales data by region. type of 
commercial use or commercial fishing use and any other relevant 
categories. The report may include any other data or analysis 
that the assessor finds 
relevant and any recommendations the 
assessor develops to assist municipal assessors in calculating 
the current use value of enrolled working waterfront land that is 
used for or supports commercial fishing actiyities. The report 
may also include recommendations to amend this subchapter for the 
purposes of improving or ensuring the accuracy of current use 
assessment of working waterfront land.' 
SUMMARY 
This amendment implements the amendment to the Constitution 
of Maine approved by the voters in 2005 to permit the Legislature 
to provide 
for 
the 
current 
use 
valuation for 
property tax 
COMMITTEE AMENDMENT 
N.~~· 
COMMITTEE AMENDMENT .. /l .. to S.P. 759, L.D. 1972 
purposes of waterfront land used for or to support commercial 
fishing activities. 
The bill provides 
for 
current use valuation of working 
waterfront land according to a process that is similar to the 
current use valuation of open space land. 
Working waterfront 
land is land used at least 50CJ.o to provide access to or support 
the conduct of commercial fishing activities. 
Current use value 
is the value of the land if it were required to remain in its 
current use as working waterfront land. 
Assessors are directed 
to determine current use value by eliminating valuation factors 
unrelated to working waterfront use and by comparison to similar 
types 
of 
uses. 
If 
there 
is 
insufficient 
data 
to 
support 
comparative valuation, 
the 
assessor 
may 
use 
a 
formula 
that 
reduces the valuation of the working waterfront land based on the 
percentage of use as working waterfront land and the existence of 
permanent restrictions on use. 
A penalty is established for withdrawal of land from current 
use valuation as working waterfront land. 
The penalty is the 
same as for withdrawal from tree growth current use valuation and 
is equal to the higher of the difference in taxes that would have 
been paid over the previous 
years and a percentage of the 
difference between the current use value and the just value on 
the date of withdrawal. 
The percentage is 30~ for land that has 
been classified for 10 years or less and decreases one percentage 
point each year until it reaches 20"'0 after the land has been 
classified for 20 years. 
The 
amendment also 
requires the State Tax Assessor, 
in 
conjunction with interested parties, to analyze and report on 
sales experience of working waterfront land every 2 years and to 
make 
recommendations 
to 
improve the effectiveness of working 
waterfront current use valuation. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 04/1 0/06 frac.. 
LD 1972 
LR3047(02) 
An Act to Preserve Maine's Working Waterfront 
Fiscal Note for Bill as Amended by Committee Amendment 'A" 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
LR3047(2) - Fiscal Note - Page I of 1