An Act To Amend the Farm and Open Space Tax Law
Maine Legislature, Session 125, LD 1142
Committee: Taxation
Sponsors: KNIGHT, MASON, BERRY, FLEMINGS, FOSSEL, HARMON, PICCHIOTTI, WINTLE, LANGLEY, TRAHAN
Amends: 36 MRSA §1102, 36 MRSA §1105-A, 36 MRSA §1109, 36 MRSA §1110, 36 MRSA §1112, 36 MRSA §1119

Legislative Document 
No. 1142 
H.P. 848 
House of Representatives, March 16, 2011 
An Act To Amend the Farm and Open Space Tax Law 
Reference to the Committee on Taxation suggested and ordered printed. 
HEATHER J.R. PRIEST 
Clerk 
Presented by Representative KNIGHT of Livermore Falls. 
Cosponsored by Senator MASON of Androscoggin and 
Representatives: BERRY of Bowdoinham, FLEMINGS of Bar Harbor, FOSSEL of Alna, 
HARMON of Palermo, PICCHIOTTI of Fairfield, WINTLE of Garland, Senators: LANGLEY 
of Hancock, TRAHAN of Lincoln. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §1102, sub-§4-A is enacted to read: 
4-A.  Farm-related structure.  "Farm-related structure" means a building or 
structure necessary for farm operations, including, but not limited to, barns, farm stands, 
storage facilities and silos, located on land classified as farmland under this subchapter. 
Sec. 2.  36 MRSA §1105-A is enacted to read: 
§1105-A.  Valuation of farm-related structures 
The municipal assessor, chief assessor or State Tax Assessor for the unorganized 
territory shall establish the 100% valuation of a farm-related structure based on the 
current use value of the farm-related structure as established by the Department of 
Agriculture, Food and Rural Resources as provided in section 1119.  The values may not 
reflect development or market value for purposes other than agricultural or horticultural 
use. The values may not reflect value attributable to road frontage or shore frontage. 
Sec. 3.  36 MRSA §1109, sub-§1, as amended by PL 1987, c. 728, §6, is further 
amended to read: 
1.  Schedule. The owner or owners of farmland subject to taxation under this 
subchapter shall submit a signed schedule in duplicate, on or before April 1st of the year 
in which the owner or owners wish to first subject such land to taxation under this 
subchapter, to the assessor upon a form to be prescribed by the State Tax Assessor 
identifying the land and farm-related structures to be taxed hereunder, listing the number 
of acres of each farmland classification, showing the location of the land in each 
classification and the location and dimensions of each farm-related structure and 
representing that the land is farmland within the meaning of section 1102, subsection 4 
and that each farm-related structure is within the meaning of section 1102, subsection 
4-A. In determining whether such land is farmland, there shall must be taken into 
account, among other things, the acreage of such land, the portion thereof in actual use 
for farming or agricultural operations, the productivity of such land, the gross income 
derived therefrom, the nature and value of the equipment used in connection therewith 
and the extent to which the tracts comprising such land are contiguous.  If the assessor 
finds that the land meets the requirements of section 1102, subsection 4, the assessor shall 
classify it as farmland, and apply the appropriate 100% valuations valuation per acre for 
farmland and it shall be is subject to taxation under this subchapter.  If the assessor finds 
that a farm-related structure meets the requirements of section 1102, subsection 4-A, the 
assessor shall classify it as a farm-related structure and apply the appropriate 100% 
valuation and it is subject to taxation under this subchapter. 
The assessor shall record, in the municipal office of the town in which the farmland is 
located, the value of the farmland and any farm-related structures as established under 
this subchapter and the value at which the farmland and any farm-related structures 
would have been assessed had it they not been classified under this subchapter. 
Sec. 4.  36 MRSA §1109, sub-§4, as amended by PL 2007, c. 438, §27, is further 
amended to read: 
4.  Investigation.  The assessor shall notify the landowner, on or before June 1st 
following receipt of a signed schedule meeting the requirements of this section, whether 
the application has been accepted or denied.  If the application is denied, the assessor 
shall state the reasons for the denial and provide the landowner an opportunity to amend 
the schedule to conform to the requirements of this subchapter. 
The assessor or the assessor's duly authorized representative may enter and examine lands 
or farm-related structures subject to taxation under this subchapter and may examine any 
information submitted by the owner or owners. 
The assessor may require the owner to respond within 60 days of the receipt of notice in 
writing by certified mail, return receipt requested, to written questions or interrogatories 
the assessor considers necessary to obtain material information about those lands or 
farm-related structures.  If the assessor determines that the required material information 
regarding those lands or farm-related structures cannot reasonably be obtained through 
written questions or interrogatories, the assessor may require the owner, upon notice in 
writing by certified mail, return receipt requested, or by another method that provides 
actual notice, to appear before the assessor at a reasonable time and place designated by 
the assessor and answer questions or interrogatories the assessor considers necessary to 
obtain material information about those lands or farm-related structures. 
If the owner of a parcel of land subject to taxation under this subchapter fails to submit 
the schedules required by this section, fails to respond to written questions or 
interrogatories of the assessor as provided in this subsection or fails to appear before the 
assessor to respond to questions or interrogatories as provided in this subsection, that 
owner or owners are deemed to have waived all rights of appeal. 
Sec. 5.  36 MRSA §1109, sub-§5, as repealed and replaced by PL 2007, c. 438, 
§28, is amended to read: 
5.  Owner obligation.  It is the obligation of the owner to report to the assessor any 
change of use or change of classification of land subject to taxation under this subchapter 
by the end of the tax year in which the change occurs and to report to the assessor on or 
before April 1st of every 5th year the gross income realized in each of the previous 5 
years from acreage classified as farmland.  An owner is not obligated to report the 
presence of a farm-related structure and the assessor may not consider the presence of a 
farm-related structure a change of use or classification. 
If the owner fails to report to the assessor as required by this subsection, the assessor shall 
assess those taxes that should have been paid, shall assess the penalty provided in section 
1112 and shall assess an additional penalty equal to 25% of the penalty provided in 
section 1112.  The assessor may waive the additional penalty for cause. 
Sec. 6.  36 MRSA §1109, sub-§6, as amended by PL 1977, c. 467, §11, is further 
amended to read: 
6.  Recertification. The assessor shall determine annually whether any classified land 
continues to meet the requirements of this subchapter. Each year the assessor shall 
recertify any classifications made under this subchapter. If any classified land no longer 
meets the requirements of this subchapter, the assessor shall either remove the 
classification or, if he the assessor deems it appropriate, allow the land to have a 
provisional classification as detailed in subsection 2.  The assessor may not fail to 
recertify any classified land under this subchapter due to the presence of a farm-related 
structure if the land continues to otherwise meet the requirements of this subchapter. 
Sec. 7.  36 MRSA §1110, as repealed and replaced by PL 1977, c. 696, §269, is 
amended to read: 
§1110.  Reclassification 
Land or a farm-related structure subject to taxes under this subchapter may be 
reclassified as to land classification by the municipal assessor, chief assessor or State Tax 
Assessor upon application of the owner with a proper showing of the reasons justifying 
that reclassification or upon the initiative of the respective municipal assessor, chief 
assessor or State Tax Assessor where the facts justify the same. In the event that the 
municipal assessor, chief assessor or State Tax Assessor determines, upon his such 
assessor's own initiative, to reclassify land or a farm-related structure previously 
classified under this subchapter, he such assessor shall provide to the owner or owners of 
the land by certified mail, return receipt requested, notice of his the intention to reclassify 
that land or a farm-related structure and the reasons therefor:. 
Sec. 8.  36 MRSA §1112, first ¶, as repealed and replaced by PL 1987, c. 728, §9, 
is amended to read: 
Any change in use disqualifying land or a farm-related structure for classification 
under this subchapter shall cause causes a penalty to be assessed by the assessors of the 
municipality in which the land is located, or by the State Tax Assessor if the land is not 
within a municipality, in addition to the annual tax in the year of disqualification except 
when the change is occasioned by a transfer resulting from the exercise or the threatened 
exercise of the power of eminent domain. 
Sec. 9.  36 MRSA §1112, 2nd ¶, as amended by PL 1999, c. 731, Pt. Y, §5, is 
further amended to read: 
For land that has been classified as farmland under this subchapter, the penalty is the 
recapture of the taxes that would have been paid on the land for the past 5 years if it had 
not been classified under this subchapter, less all taxes that were actually paid during 
those 5 years and interest at the rate set by the town during those 5 years on delinquent 
taxes.  For a farm-related structure that has been classified under this subchapter, the 
penalty is the recapture of the taxes that would have been paid on the farm-related 
structure for the past 5 years if it had not been classified under this subchapter, less all 
taxes that were actually paid during those 5 years and interest at the rate set by the town 
during those 5 years on delinquent taxes.  An owner of farmland or a farm-related 
structure that has been classified under this subchapter for 5 full years or more may pay 
any penalty owed under this paragraph in up to 5 equal annual installments with interest 
at the rate set by the town to begin 60 days after the date of assessment.  Notwithstanding 
section 943, for an owner paying a penalty under this procedure, the period during which 
the tax lien mortgage, including interest and costs, must be paid to avoid foreclosure and 
expiration of the right of redemption is 48 months from the date of the filing of the tax 
lien certificate instead of 18 months. 
Sec. 10.  36 MRSA §1119, as amended by PL 2001, c. 652, §8, is further amended 
to read: 
§1119.  Valuation guidelines 
By December 31, 2000 and biennially thereafter, the Department of Agriculture, 
Food and Rural Resources working with the Bureau of Revenue Services, representatives 
of municipal assessors and farmers shall prepare guidelines to assist local assessors in the 
valuation of farmland and a method for determining the current use value of farm-related 
structures.  The department shall also deliver these the guidelines and method in training 
sessions for local assessors throughout the State.  These guidelines must include 
recommended values for cropland, orchard land, pastureland and horticultural land, 
differentiated by region where justified.  Any variation in assessment of farmland from 
the recommended values must be substantiated by the local assessor within the 
parameters allowed within this subchapter. 
SUMMARY 
This bill allows a farm-related structure on land enrolled in the farm and open space 
tax program to be taxed at a current use value established by a method determined by the 
Department of Agriculture, Food and Rural Resources working with the Department of 
Administrative and Financial Services, Bureau of Revenue Services, representatives of 
municipal assessors and farmers.