An Act To Ensure the Continued Viability of Affordable Housing
Maine Legislature, Session 122, LD 1796
Committee: Taxation
Sponsors: PERRY, CLOUGH, STRIMLING, HUTTON, LERMAN, MILLER, WATSON

Legislative Document 
No. 1796 
S.P.713 
In Senate, December 30,2005 
An Act To Ensure the Continued Viability of Affordable Housing 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Received by the Secretary ofthe Senate on December 28,2005. Referred to the Committee 
on Taxation pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 218. 
Presented by Senator PERRY of Penobscot. 
Cosponsored by Representative CLOUGH of Scarborough and 
JOY J. O'BRIEN 
Secretary of the Senate 
Senator: STRIMLING of Cumberland, Representatives: HUTTON of Bowdoinham, LERMAN 
of Augusta, MILLER of Somerville, WATSON of Bath. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec.t. 36MRSA§70t-A, as amended by PL 1999, c. 478, §2, is 
repealed and the following enacted in its place: 
§70l-A. 
Just value defined 
1. 
Determination of just value. 
In 
the 
assessment 
of 
property, assessors in determining just value are to define this 
term in a manner that recognizes only that value arising from 
presently possible land use alternatives to which the particular 
parcel of land being valued may be put. 
In determining just 
value. assessors must consider all relevant factors. 
The just 
value of land is determined to arise from and is attributable to 
legally permissible use or uses only. 
For 
purposes 
of 
this 
section. 
"relevant 
factors" 
includes. 
without limitation, the effect upon value of any enforceable 
restrictions to which the use of the land may be subjected. 
current 
use, 
physical 
depreciation. 
sales 
in 
the 
secondary 
market. functional obsolescence and economic obsolescence. 
For 
purposes of this section. "enforceable restrictions" includes. 
without limitation. zoning restrictions limiting the use of the 
land. 
subdivision 
restrictions 
and 
any 
recorded 
contractual 
provisions limiting the use of the land. 
2. 
Valuation of 
certain 
unimproved 
acreage. 
For 
the 
purpose of establishing the valuation of unimproved acreage in 
excess of an improved house lot. contiguous parcels and parcels 
divided by a road. power line or right-of-way may be valued as 
one parcel when each parcel is 5 or more acres. the owner gives 
written consent to the assessor to value the parcels as ---.9ne 
parcel and the owner certifies that the parcels are not held for 
sale and are not subdivision lots. 
3. 
Low-income housing. 
For the purpose of establishing the 
valuation of land and improvements 
on that land constituting 
housing: aCQuired. rehabilitated or constructed using the federal 
low-income housing tax credit authorized by the Code. Section 42, 
including all relevant factors and enforceable restrictions. the 
presence of intangible assets or rights. 
including. 
but not 
limited to. contracts and agreements. government subsidies. tax 
credits 
and 
permits 
and 
licenses, 
may 
not 
be 
included 
in 
determining the value of such housing. 
SUMMARY 
This 
bill 
excludes 
from 
assessment 
purposes 
intangible 
valuation 
for 
property 
tax 
assets 
or 
rights, 
such 
as 
Page l-LR2982(1) 
contracts and agreements, government subsidies, tax credits and 
permi ts 
and 
licenses, 
found 
in 
housing 
that 
is 
acquired, 
rehabilitated or constructed using the federal low-income housing 
credit.