Maine Legislature, Session 122, LD 0189
Committee: Taxation
Sponsors: PERCY, RA YE, BOWEN, CARR, KOFFMAN, MILLS, PIOTTI, SCHATZ, NUTTING

Legislative Document 
No. 189 
H.P.140 
House of Representatives, January 13,2005 
RESOLUTION, Proposing an Amendment to the Constitution of 
Maine To Provide Property Tax Relief to Owners of Property Used 
for Commercial Fishing and Homestead Land 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Representative PERCY of Phippsburg. 
1J1~ 
1J7.7lbc~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representati ve SMITH of Monmouth, Senator RA YE of Washington and 
Representatives: BOWEN of Rockport, CARR of Lincoln, KOFFMAN of Bar Harbor, MILLS 
of Farmington, PIOTTI of Unity, SCHATZ of Blue Hill, Senator: NUTTING of Androscoggin. 
Printed on recycled paper 
Constitutional amendment. 
Resolved: 
Two 
thirds 
branch 
of 
the 
Legislature 
concurring, 
that 
the 
amendments to the Constitution of Maine be proposed: 
Constitution, Art. IX, §8. sub-§2 is amended to read: 
of 
each 
following 
2. 
Assessment of certain 
lands 
based 
on 
current use; 
penalty on change to higher use. 
The Legislature shall have 
power to provide for the assessment of the following types of 
real estate whenever situated in accordance with 
a 
valuation 
based upon the current use thereof and in accordance with such 
conditions as the Legislature may enact: 
A. 
Farms and agricultural lands, timberlands and woodlands; 
B. 
Open space lands which are used for recreation or the 
enjoyment of scenic natural beauty; aBa 
c. 
Lands used for game management or wildlife sanctuariesT; 
~ 
D. 
Waterfront 
land 
and 
structures 
commercial fishing purposes , including, 
access, dockage, processing, vessel and 
purchase 
of 
marine 
products 
from 
a 
commercially. 
used 
primarily 
for 
but not limited to, 
gear storage and the 
person 
who 
fishes 
In 
implementing 
paragraphs 
A, 
B 
aBaL 
C 
and 
D, 
the 
Legislature shall provide that any change of use higher than 
those set forth in paragraphs A, B aBSL C and D, except when the 
change is occasioned by a transfer resulting from the exercise 01 
threatened exercise of the power of eminent domain, shall result 
in the imposition of a minimum penalty equal to the tax which 
would have been imposed over the 5 years preceding that change of 
use had that real estate been assessed at its highest and best 
use, less all taxes paid on that real estate over the preceding 5 
years, and interest, upon such reasonable and equitable basis as 
the Legislature shall determine. 
Any statutory or constitutional 
penal ty imposed as a result of a change of use, whether imposed 
before 
or 
after 
the 
approval 
of 
this 
subsection, 
shall 
be 
determined without regard to the presence of minerals, provided 
that, when payment of the penalty is made or demanded, whichever 
occurs first, there is in effect a state excise tax which applies 
or would apply to the mining of those minerals. 
In implementing 
paragraph Dr the Legislature shall provide that it is the choice 
of the municipality whether to allow the value of property listeg 
in paragraph D contained in that municipality to be based on 
current use. 
Page l-LR0509(1) 
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Hi 
.. 
Constitution. Art. IX. §8. sub-§6 is enacted to read: 
6. 
Homestead land value. 
A municipality may limit the rate 
of change in the taxable value of homestead land to the rate of 
change 
in 
purchasing 
power 
of 
United 
States 
currency 
as 
consistently 
measured 
by 
a 
reliable 
index 
adopted 
by 
the 
Legislature. 
This limitation does not apply to changes in value 
arising from physical alterations to the land or arising from 
changes in law affecting authorized use of the land. 
"Homestead land" means land that is exclusively and continuously 
owned by one or more 
residents of the State while the land 
remains the principal home of each owner. 
The taxable value of 
the 
parcel 
must 
be 
restored 
to 
just value 
upon 
change 
in 
ownership 
or 
use. 
A 
homestead 
parcel 
gualifying 
for 
the 
limitation may not be larger than reasonably necessary to support 
a personal residence and may be othen-lise limited or defined by 
the Legislature. 
The decision by a municipality to limit the rate of change in 
taxable value of homestead land under this subsection does not 
affect the determination of the egualized just value of taxable 
property in the municipality for any purpose. 
; and be it further 
Constitutional referendum procedure: form of question: effective 
date. Resolved: 
That the municipal officers of this State shall 
notify the inhabitants of their respective cities, 
towns 
and 
plantations to meet, in the manner prescribed by law for holding 
Fl. 
statewide election, at a statewide election, on the Tuesday 
follo't,ing the first Monday of November following the passage of 
this resolution, to vote upon the ratification of the amendment 
proposed in this resolution by voting upon the following question: 
"Vo you favor amending the Constitution of Maine to allow: 
1. 
The Legislature to provide for the assessment of land 
and 
structures 
used 
primarily 
for 
commercial 
fishing 
purposes based on the current use of that property, if the 
muncipality in which 
the 
land 
and 
structures 
are 
found 
decides to make that option available; and 
2. 
Municipalities 
to 
limit 
the 
rate 
of 
change 
in 
the 
taxable value of homestead land to the rate of change in 
purchasing power of United States currency as consistently 
measured by a reliable index adopted by the Legislature?" 
The legal voters of each city, town and plantation shall 
vote by ballot on this question and designate their choice by 
CI 
cross or check mark placed within the corresponding square below 
the word "Yes" or "No." 
The ballots must be received, sorted, 
counted and declared in open ward, town and plantation meetings 
and returns made to the Secretary of State in the same manner as 
votes for members of the Legislature. 
The Governor shall review 
the returns and, if it appears that a majority of the legal votes 
are cast in favor of the amendment, the Governor shall proclaim 
that fact without delay and the amendment becomes part of the 
Constitution of Maine on the date of the proclamation; and be it 
further 
Secretary of State shall prepare ballots. 
Resolved: 
That 
the 
Secretary of State shall prepare and furnish to each city, town 
and plantation all ballots, returns and copies of this resolution 
necessary to carry out the purposes of this referendum. 
SUMMARY 
This 
constitutional resolution allows 
the Legislature 
to 
provide for the assessment of land and structures used primarily 
for commercial fishing purposes based on the current use of that 
property; 
a 
municipality 
would 
be 
given 
the 
option 
of 
participating in this assessment. 
This constitutional amendment also proposes to authorize a 
municipality 
to 
limit 
the 
rate 
of 
change 
in 
the 
tax 
rate 
applicable to homestead land, which is land that is exclusively 
and continuously owned by one or more residents of the State 
while the land remains the principal home of each owner, to the 
rate of change in the purchasing power of United States currency 
as consistently measured by 
a 
reliable index 
adopted by 
the 
Legislature.