An Act To Preserve Farmland and Timberland following the Death of an Owner
Maine Legislature, Session 122, LD 0827
Committee: Taxation
Sponsors: FLOOD, ANDREWS, RECTOR, SHERMAN, THOMPSON, NUTTING
Amends: 36 MRSA §4080

Legislative Document 
No. 827 
H.P.586 
House of Representatives, February 16,2005 
An Act To Preserve Farmland and Timberland following the Death 
of an Owner 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representati ve FLETCHER of Winslow. 
'!r/~ frJ· 7JJt1£~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representative FLOOD of Winthrop, Senator ANDREWS of York and 
Representatives: PlOTT I of Unity, RECTOR of Thomaston, SHERMAN of Hodgdon, 
THOMPSON of China, Senator: NUTTING of Androscoggin. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRSA §4080 is enacted to read: 
S4080. 
Exemptions 
1. 
Definitions. 
As 
used 
in this 
section, 
unless 
the 
context 
otherwise 
indicates, 
the 
following 
terms 
have 
the 
following meanings. 
A. 
"Eligible farmland" means a tract of land located in the 
State, 
including woodland 
and wasteland, 
of at least 
contiguous acres on which a farming or agricultural activity 
has contributed to a gross annual farming income of at least 
$2,000 per year in either 1 of the 2 calendar years or 3 of 
the 5 calendar years preceding the death of the owner. 
The 
farming or agricultural activity and the income derived from 
that activity may be earned by either the owner or lessee of 
the farmland. 
For the purposes of this paragraph, "gross 
annual farming income" 
includes the value of commodities 
produced for consumption by the farm household. 
B. 
"Eligible timberland" means a tract of land of at least 
acres used primarily for 
the growth of trees to be 
harvested for commercial use. 
Otherwise eligible timberland 
may not be excluded from the provision of this section due 
to: 
(1) 
Public recreational use of the land; 
(2) 
A 
statutory 
or 
governmental 
restriction 
that 
prevents commercial harvesting of trees or requires a 
primary 
use 
of 
the 
land 
other 
than 
commercial 
harvesting; 
(3) 
A 
deed 
restriction, 
restrictive 
covenant 
or 
organizational 
charter 
that 
prevents 
commercial 
harvesting of trees or requires a primary use of the 
land other than commercial harvesting and was effective 
prior to January 1, 1982: or 
(4) 
Past or present mineral exploration on the land. 
2. 
Exemption. 
The tax otherwise imposed by this chapter is 
reduced 
by 
the 
amount 
of 
the 
tax 
attributable 
to 
eligible 
farmland and eligible timberland included in the taxable estate, 
including eligible timberland and eligible farmland held by an 
entity to the extent that the value of the entity is included in 
the taxable estate. 
If the value of a decedent I s estate minus 
the value of eligible farmland and eligible timberland is below 
the amount that would incur federal estate tax, then no tax is 
owed under this chapter. 
3. Application. 
The prov~s~ons of this section apply to an 
estate of a decedent who dies on or after January 1, 2005. 
SUMMARY 
This 
bill 
removes 
the 
value 
of 
eligible 
farmland 
and 
timberland from the calculation of the Maine estate tax.