An Act To Authorize Arbitration of Property Tax ~uation Disputes
Maine Legislature, Session 124, LD 0349
Committee Amendment CA_A_S79 (Senate)

COMMITTEE AMENDMENT " 11" to S.P. 113, LD. 349, Bill, "An Act To 
Authorize Arbitration of Property Tax ~uation Disputes" 
Amend the bill in section 1 in subsection 1 by striking out all of paragraphs Band C 
(page 1, lines 17 to 41 and page 2, lines 1 to 21 in L.D.) and inserting the following: 
'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: 
(1) 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; or 
(2) Submit the decision of the board of assessment review 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 and a municipality may submit an abatement 
determination by the board of assessment review to binding arbitration by providing 
written notice to the other party within the time period for appealing the decision of 
the board of assessment review to the Superior Court. Either party's election to 
submit to binding arbitration stays a timely filed appeal to the Superior Court by the 
other party. 
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. 
Page I - ] 24LR0733(02)-] 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" A" to S.P. 113, L.D. 349 
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. 
The arbitrator shall hold a de novo hearing to determine the just value of the property 
in accordance with standards of valuation and substantive law, including, without 
limitation, determination of the fair market value by applying the comparable sales 
method and assuming a willing buyer and seller and a reasonable marketing period. 
Either party 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 burden of proof is on the property owner to show the assessor's valuation 
is manifestly wrong, results in 'unjust discrimination or is otherwise contrary to law. 
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 decision of the arbitrator upon 
application of either party within 60 days of the arbitrator's decision unless the 
Superior Court finds that the decision of the arbitrator was subject to vacation by the 
Superior Court under the substantive standards for vacating an arbitration award 
under Title 14, chapter 706, including, without limitation, an instance of a decision 
procured by corruption, fraud or other misconduct that substantially prejudiced the 
rights of either party or when an arbitrator exceeded the arbitrator's powers. 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 
This amendment permits a municipality as well as a property owner to seek binding 
arbitration, ensures that the standard for valuation is just value, clarifies that the burden of 
proof that the assessor's valuation is manifestly wrong is on the property owner and 
makes other changes to the arbitration procedures. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
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Approved: 04/09/09 Mac:.. 
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State Mandates 
Required Activity 
LD349 
LR 733(02) 
An Act To Authorize Arbitration of Property Tax Valuation Disputes 
Fiscal Note for Bill as Amended by Committee Amendment 'A" 
Committee: Taxation 
Fiscal Note Required: Yes· 
Fiscal Note 
State Mandate - Unfunded 
Unit Affected 
Requiring municipalities to engage in additional administrative and clerical 
Municipality 
functions, including participating in arbitration and possibly sharing half the costs of 
said arbitration, may be a mandate under the Constitution of Maine. 
Local Cost 
Significant 
statewide 
The required local activities in this bill may represent a State mandate pursuant to the Constitution of Maine. Unless 
General Fund appropriations are provided to fund at least 90% of the additional costs or a Mandate Preamble is 
amended to the bill and two-thirds of the members of each House vote to exempt this mandate from the funding 
requirement, municipalities may not be required to implement these changes. 
LR0733(02) - Fiscal Note - Page 1 of 1