An Act To Authorize Arbitration of Property Tax Valuation Disputes
Maine Legislature, Session 124, LD 0349
Committee: Taxation
Sponsors: SMITH, CAIN, DIAMOND, HASTINGS, KNIGHT
Amends: 36 MRSA §843

Legislative Document 
No. 349 
S.P.113 
In Senate, February 3, 2009 
An Act To Authorize Arbitration of Property Tax Valuation 
Disputes 
Reference to the Committee on Taxation suggested and ordered printed. 
Presented by Senator SMITH of Piscataquis. 
Cosponsored by Representative CAIN of Orono and 
9t[2tJ~ 
JOY J. O'BRIEN 
Secretary of the Senate 
Senators: DIAMOND of Climb erland, HASTINGS of Oxford, Representative: KNIGHT of 
Livennore Falls. 
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Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 36 MRSA §843, sub-§I, as amended by PL 1995, c. 262, §4, is repealed 
and the following enacted 111 its place:-
1. Municipalities with board of assessment review; binding arbitration. If a 
municipality has adopted a bQard of assessment review, the provisions of this subsection 
mm1Y,. 
A. If the assessors or the municipal officers refuse to make the abatement asked for, 
the applicant may apply in writing to the board of assessment review within 60 days 
after notice of the decision from which the appeal is being taken or after the 
application is deemed to have been denied by the municipal officers. If the board 
detennines the applicant is over-assessed,. the. applicant is granted such reasonable 
abatement as the board thinks proper. If the board of assessment review fails to give 
written notice of its decision within 60 days of the date the application is filed, unless 
the applicant agrees in writing to further delay, the application is deemed denied and 
the applicant may appeal to the Superior Court as if there had been a written denial or·-
submit the request for abatement to binding arbitration as provided in paragraph C. 
B. Except with regard to nonresidential property or properties with an equalized 
municipal valuation of $1,000,000 or greater either separately or in the aggregate, 
either party may appeal from the decision of the board of assessment review directly 
to the Superior Court, in accordance with Rule 80B of the Maine Rules of Civil 
Procedure. The applicant may submit the request for abatement to binding arbitration 
as provided in paragraph C. 
C. An applicant may submit an application that has been denied by the board of 
assessment review to binding arbitration by providing written notice to the 
municipality within the time period for appealing the decision of the _board of 
assessment review to the Superior Court. 
The applicant's election to submit to 
binding arbitration stays any timely filed appeal to the Superior Court by the 
municipality. 
The arbitration must be before a neutral party, jointly chosen by the municipality and 
the applicant, who: 
(1) Is experienced in real estate valuation; 
(2) Is not a resident of the municipality; 
(3) Does not own property in the municipality; and 
(4) Does not have a material business or social relationship to the applicant, the 
municipality or the municipal officials. 
If the applicant and the municipality cannot agree upon an arbitrator within 14 days 
of submission to arbitration, the Superior Court, upon request of either. the 
municipality or the applicant, shall appoint a neutral arbitrator in accordance with 
subparagraphs (1) to (4). The cost of the arbitrator must be shared equally between 
the municipality and the applicant, except that the arbitrator may decide that the 
conduct of the parties requires a different allocation of the costs. 
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The arbitrator shall hold a de novo hearing to determine the fair value of the 
applicant's property, assuming a willing buyer and seller and a marketing period of 
between 3 months and 6 months. The applicant and the municipality may present 
relevant evidence, cross-examine witnesses and be represented by counsel. 
The 
arbitrator is solely responsible for making reasonable determinations of procedure 
and admissibility of evidence, including compulsion of witnesses, production of 
evidence and adjournment of the arbitration for good cause shown. The arbitrator 
shall render a written decision within 60 days of appointment. Upon agreement of 
both parties, the time restrictions in this paragraph may be waived. 
The Superior Court shall confirm the timely filed decision of the arbitrator upon 
application of either party within 60 days of the arbitrator's decision unless the 
Superior Court fmds that the decision of the arbitrator was procured by corruption, 
fraud or other misconduct that substantially prejudiced the rights of either party. The 
Superior Court may correct any evident miscalculation of figures or obvious errors in 
description or other matters of form not affecting the merits of the arbitrator's 
decision. 
If the arbitrator fails to render a decision within 60 days or other time period agreed 
to by both parties, either party may appeal the original decision of the board of 
assessment review to the Superior Court as provided in paragraph B. The appeal 
must be filed no later than the time specified in Rule 80B of the Maine Rules of Civil 
Procedure following the date by which the decision was due from the arbitrator. 
SUMMARY 
Current law allows a property owner in a municipality that has adopted a board of 
assessment review to seek an abatement from that board. Either the municipality or the 
property owner may appeal the decision of the board of assessment review to the Superior 
Court. 
This bill allows a property owner to submit the decision of the board of assessment 
review to binding arbitration and specifies the procedure for selecting a neutral arbitrator 
and participating in binding arbitration. A decision to submit to binding arbitration stays 
a municipality's appeal to the Superior Court.