An Act To Create a Property Tax Reimbursement for Commercial Dairy Farms
Maine Legislature, Session 122, LD 1180
Committee: Taxation
Sponsors: MILLS

Legislative Document 
No. 1180 
S.P.408 
In Senate, March 8, 2005 
An Act To Create a Property Tax Reimbursement for Commercial 
Dairy Farms 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Senator MILLS of Somerset. 
Printed on recycled paper 
JOY J. O'BRIEN 
Secretary of the Senate 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRS A c. 918 is enacted to read: 
CHAPTER 918 
DAIRY FARM PROPERTY TAX REIMBURSEMENT 
§6801. 
Definitions 
As 
used 
in this 
chapter, 
unless 
the 
context 
otherwise 
indicates, the following terms have the following meanings. 
1. 
C1aim year. 
"Claim year" means the 12 calendar months 
imme di ate ly pre ce di ng the 
da'-'t"'e'----"o~n"____"w~h"_'i"_,c"_'h"'_______'t""h'_'_e""____'e"_"'_l_"'_i""'g-"'i'""'b'-"l'-"e"----....tp,-,r,-,o.<.jp"-e,,,--,,-r->et4-Y 
taxes are assessed. 
2. 
C1aimant. 
"Claimant" means a person that makes a claim 
as a commercial dairy farm under this chapter. 
-"!3c.o.._-,C,.,o ... mme.,.,,., rcia1 qai ry 
f~pn"-. __ 
"-"C'-"o<-'-m'-"m-"'e"'-"-r-"'c_"'i-"a"'l'----'d"""'a.=i-"-r .. 
y~f""a"'_"_rm=_"____'m!.!.:e"'_a"".."n_"'s_______=a 
single 
taxable entity, 
including 
a 
sole proprietor, 
married 
couple, partnership or corporation, that: 
A. 
Held 
a 
dairy 
farm 
operating permit 
under Title 
7, 
section 2902-A on the date of assessment and for at least 6 
calendar months during the claim year; 
B. 
Produced 
and 
sold at least 
10,000 
pounds 
of 
milk 
products in each of 6 calendar months of the claim year; 
C. 
Was domiciled in this State throughout the claim year; 
and 
D. 
Was owned throughout the claim year exclusively by Maine 
residents if the entity is a corporation or partnership. 
If a farm is sold during the claim year, the entity that owns or 
leases the dairy farm real estate on the date of assessment may 
qualify as a commercial dairy farm if its own experience when 
combined with that of its predecessor fulfills each of the above 
conditions. 
4. 
Dairy faraL~~~l e§tate. 
"Dairy farm real estate" means 
those portions of real estate: 
A. 
That were owned by or leased to a commercial dairy farm 
on the date of the assessment and for at least 
full 
calendar months of the claim year; 
Page l-LR1176 (1) 
B. 
That were necessary to support that farm's production of 
milk products as defined in Title 7. section 2901; and 
C. 
That were. in fact. predominantly used to support the 
production of milk products by that farm during at least 6 
months of the claim year. 
B 
The raising and selling of cows. heifers. veal. hay. silage and 
other products associated with dairy farming are considered to 
support the production of milk products if the aggregate revenue 
generated by such activity is merely incidental to the farm's 
primary function as a producer of milk products. 
"Dairy farm real estate" may include the residence of any person 
who is regularly employed more than 30 hours a week in the dairy 
operations of the farm if the residence is owned or leased by the 
farm and is located on the farm or adjacent to it. 
Residential 
property may be included as dairy farm real estate only to the 
extent that its value does not exceed 
30~ of the total value of 
the farm's dairy farm real estate. 
n 
5. 
Eligible property 
t~. 
"Eligible property 
taxes" 
m~ans property taxes that have been assessed and paid on or after 
April L 
1998 on dairy farm real estate owned by a commercial 
dairy farm or leased to it. 
Eligible property taxes on real 
estate leased to the farm may not exceed the amount paid by the 
farm as rent for use of the property during the claim year. 
Taxes are not considered "eligible property taxes" until the 
taxes themselves and any associated interest and penalties have 
been fully paid. 
"Eligible property taxes" does not include the 
amount of any special assessment, 
any service charge or 
any 
charge, interest or penalty for delinguency. 
6. 
Real estate. 
"Real estate" means land, buildings and 
fixtures located in this State. 
"Real estate" does not include 
vehicles, movable eguipment or other personal property. 
3B 
§6802. 
Reimbursement 
4U 
A commercial dairy farm is entitled to reimbursement from 
the State of 50% of its eligible property taxes. 
§6803. 
Claim for reimbursement 
A claim for reimbursement under this chapter must be filed 
within 15 calendar months of the date when the eligible property 
taxes are assessed. 
No more than one claim for reimbursement may 
be filed for each year in which eligible taxes are assessed. 
A 
')0 
copy of the claim must be sent to the assessor for each taxing 
jurisdiction to which 
the eligible property taxes 
have 
been 
paid. 
The State Tax Assessor shall prescribe claim forms for 
reimbursement with instructions and make such forms available to 
gualified farms. 
§6804. 
Payment of claim 
Upon rece_ipt of a timely and properly completed claim for 
reimbursement under this chapter, the State Tax Assessor shall 
certify 
that 
the 
commercial 
dairy 
farm 
is 
eligible 
for 
reimbursement and shall pay from the General Fund the amount 
claimed within 120 days after the claim is filed. 
§6805. 
Audit of claim 
The State Tax Assessor may audit any claim filed under this 
chapter and take any action provided in section 384. 
If the 
State Tax Assessor determines that the amount of the claimed 
reimbursement 
is 
incorrect. 
the 
State 
Tax 
Assessor 
shall 
redetermine the claim and notify the claimant in writing of the 
redetermination and the State Tax Assessor' s 
reasons. 
If the 
claimant has received reimbursement of an amount that the State 
Tax Assessor concludes should not have been reimbursed, the State 
Tax Assessor may issue an assessment for that amount wi thin 3 
years from the date on which the reimbursement claim was filed or 
at any time if a fraudulent reimbursement claim was filed. 
The 
claimant 
may 
seek 
reconsideration 
of 
the 
redetermination 
or 
assessment pursuant to section 151. 
§6806. 
Subsequent changes 
If, after a claim for reimbursement has been filed under 
this chapter, the associated property tax assessment is reduced 
or abated, the claimant shall file, within 60 days after receipt 
of the reduction or abatement, an amended claim for reimbursement 
reflecting 
the 
reduction 
or 
abatement. 
If 
a 
claimant 
has 
received 
reimbursement 
for 
property 
tax 
that is 
reduced 
or 
abated, the claimant shall, within 60 days of receipt of the 
reduction or abatement, refund to the General Fund the amount of 
the reimbursement for the property tax that has been reduced or 
abated. 
If the claimant fails to make the refund within the 
60-day period, the State Tax Assessor, within 3 years from the 
claimant's receipt of reimbursement, may issue an assessment for 
the amount that the claimant owes 
to the General Fund. 
The 
claimant may seek reconsideration of the assessment pursuant to 
section 151. 
SUMMARY 
Under this bill an eligible commercial dairy farm, 
which 
must produce and sell at least 10,000 pounds of milk products in 
each of 6 months in one year, may receive a 50% reimbursement for 
property taxes paid on real estate that was necessary to support 
the farm's production of milk products for at least 6 months of 
the year for which reimbursement is sought.