An Act To Modernize and Improve Maine's Property Tax System
Maine Legislature, Session 128, LD 1479
Committee: Taxation
Sponsors: STANLEY, SAVIELLO, CAMPBELL, FARRIN, HANINGTON, HARLOW, NADEAU, RILEY, SKOLFIELD, CUSHING
Amends: 36 MRSA §271, 36 MRSA §305, 36 MRSA §706, 36 MRSA §708, 36 MRSA §843, 36 MRSA §844

Legislative Document
No. 1479
H.P. 1018
House of Representatives, April 18, 2017
An Act To Modernize and Improve Maine's Property Tax System
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative STANLEY of Medway.
Cosponsored by Senator SAVIELLO of Franklin and
Representatives: CAMPBELL of Orrington, FARRIN of Norridgewock, HANINGTON of 
Lincoln, HARLOW of Portland, NADEAU of Winslow, RILEY of Jay, SKOLFIELD of Weld, 
Senator: CUSHING of Penobscot.
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §271, sub-§1, as amended by PL 1989, c. 503, Pt. B, §165, is 
further amended to read: 
1.  Organization; meetings.  The State Board of Property Tax Review, as 
established by Title 5, section 12004-B, subsection 6, shall consist consists of 15 
members appointed by the Governor for terms of 3 years, except for initial appointments 
which shall be 1/3 of the membership for one year, 1/3 of the membership for 2 years and 
1/3 of the membership for 3 years.  Vacancies on the board shall must be filled for the  
remainder of the unexpired term.  The membership shall must be equally divided among 
attorneys, real estate brokers, engineers representatives of business and industry who are 
experienced in taxation, finance or valuation matters, retired assessors and public 
members. A public member may not be an assessor, former assessor, municipal official or 
former municipal official.  The board shall annually elect a chair and secretary.  The 
secretary need not be chosen from the members of the board. 
Sec. 2.  36 MRSA §271, sub-§7, as enacted by PL 1985, c. 764, §8, is amended to 
read: 
7.  Appeal.  Decisions of the board may be appealed pursuant to the Maine 
Administrative Procedure Act, Title 5, chapter 375 directly to the Law Court in the same 
manner as an appeal taken from a judgment of the Superior Court in a civil action. 
Sec. 3.  36 MRSA §305, sub-§5, as amended by PL 2001, c. 564, §3, is further 
amended to read: 
5.  Rules. Promulgate Adopt, after appropriate notice and hearing, all rules and 
regulations necessary to carry into effect any of its duties and responsibilities; and 
Sec. 4.  36 MRSA §305, sub-§6, as amended by PL 2011, c. 655, Pt. II, §8 and 
affected by §11 and amended by c. 657, Pt. W, §6, is further amended to read: 
6.  Report on changes in land ownership.  On or before September 1st of each year, 
report to the Commissioner of Agriculture, Conservation and Forestry, the Commissioner 
of Inland Fisheries and Wildlife and the joint standing committee of the Legislature 
having jurisdiction over public lands on the transfer in ownership of parcels of land 
10,000 acres or greater within the unorganized territory of the State.  Using information 
maintained by the State Tax Assessor under section 1602 and section 4641-D, the bureau 
shall provide information for each transfer that includes: 
A.  Name of the seller; 
B.  Name of the buyer; 
C.  Number of acres transferred; 
D.  Classification of land; 
E.  Location by township and county; 
F.  Sale price; and 
G.  A brief description of the property.; and 
Sec. 5.  36 MRSA §305, sub-§7 is enacted to read: 
7.  Valuation of industrial facilities.  Notwithstanding any other provision of this 
Title to the contrary, determine the just value of real and personal property located at 
industrial facilities as of the first day of each April beginning in 2018 and provide those 
just values to each municipality in which an industrial facility is located no later than 
June 1st of each property tax year.  In the bureau's determination of the just value of an 
industrial facility, the State Tax Assessor may utilize section 706 or any other powers 
granted to the assessor under this Title to obtain necessary information from the taxpayer.  
The just value of an industrial facility determined by the bureau is binding on local 
assessors, subject to equalization.  A municipality that is aggrieved by the bureau’s 
determination of just value of an industrial facility may petition for reconsideration 
pursuant to section 151.  A taxpayer that is aggrieved by the bureau’s determination of 
just value of an industrial facility may seek an abatement of the municipal assessment 
pursuant to sections 841, 843 and 844.  For purposes of this subsection, "industrial 
facility" means a manufacturing facility that has or is anticipated by the bureau to have a 
total just value exceeding $10,000,000 in any municipality for all real and personal 
property located in that municipality. 
Sec. 6.  36 MRSA §706, as amended by PL 2013, c. 544, §5 and affected by §7, is 
further amended to read: 
§706.  Taxpayers to list property; notice; verification 
Before making an assessment, the assessor or assessors, the chief assessor of a 
primary assessing area or the State Tax Assessor in the case of the unorganized territory 
may give seasonable notice in writing to all persons liable to taxation or qualifying for 
exemption pursuant to subchapter 4-C in the municipality, primary assessing area or the 
unorganized territory to furnish to the assessor or assessors, chief assessor or State Tax 
Assessor true and perfect lists of all their estates of which they were possessed on the first 
day of April of the same year. 
The notice to owners may be by mail directed to the last known address of the 
taxpayer or by any other method that provides reasonable notice to the taxpayer. 
If notice is given by mail and the taxpayer does not furnish the list, the taxpayer is 
barred of the right to make application to the assessor or assessors, chief assessor or State 
Tax Assessor or any appeal from an application for any abatement of those taxes, unless 
the taxpayer furnishes the list with the application and satisfies the assessing authority or 
authority to whom an appeal is made that the taxpayer was unable to furnish the list at the 
time appointed. 
The assessor or assessors, chief assessor or State Tax Assessor may require the 
person furnishing the list to make oath to its truth, which oath any of them may 
administer. 
The assessor or assessors, chief assessor or State Tax Assessor may require the 
taxpayer to answer in writing all proper inquiries a total of no more than 30 
interrogatories or document requests or a combination of interrogatories and document 
requests not exceeding 30 in the aggregate seeking information as to the nature, situation 
and value of the taxpayer's property liable to be taxed in the State or subject to exemption 
pursuant to subchapter 4-C.  Each distinct subpart in an interrogatory or document request 
is considered a separate interrogatory for the purpose of the 30-request limit.  A taxpayer 
may make reasonable objections to responding to interrogatories or document requests to 
the same extent as objections may be made under the Maine Rules of Civil Procedure.  
As may be reasonably necessary to ascertain the value of property according to the 
income approach to value pursuant to the requirements of section 208-A or generally 
accepted assessing practices, these inquiries interrogatories and document requests may 
seek information about income and expenses, manufacturing or operational efficiencies, 
manufactured or generated sales price trends or other related information. A taxpayer has 
days from receipt of such an inquiry interrogatories and document requests to respond. 
Upon written request, a taxpayer is entitled to a 30-day extension to respond to the 
inquiry interrogatories and document requests and the assessor may at any time grant 
additional extensions upon written request. Information provided by the taxpayer in 
response to an inquiry interrogatory or document request that is proprietary information, 
and clearly labeled by the taxpayer as proprietary and confidential information, is 
confidential and is exempt from the provisions of Title 1, chapter 13. An assessor of the 
taxing jurisdiction may not, without the taxpayer's written consent, allow the inspection 
of or otherwise release such proprietary information to anyone other than the State Tax 
Assessor, who shall treat such proprietary information as subject to section 191, 
subsection 1, except that the exemption provided in section 191, subsection 2, paragraph I 
does not apply to such proprietary information.  As used in this subsection, "proprietary 
information" means information that is a trade secret or production, commercial or 
financial information the disclosure of which would impair the competitive position of 
the person submitting the information and would make available information not 
otherwise publicly available and information protected from disclosure by federal or state 
law or regulations.  A person who knowingly violates the confidentiality provisions of 
this paragraph commits a Class E crime. 
A taxpayer's refusal or neglect to answer inquiries bars an appeal, but the answers are 
not conclusive upon the assessor or assessors, chief assessor or State Tax Assessor. 
If the assessor or assessors, chief assessor or State Tax Assessor fail to give notice by 
mail, the taxpayer is not barred of the right to make application for abatement; however, 
upon demand the taxpayer shall answer in writing all proper inquiries as to the nature, 
situation and value of the taxpayer's property liable to be taxed in the State.  A taxpayer's 
refusal or neglect to answer the inquiries and subscribe the same bars an appeal, but the 
list and answers are not conclusive upon the assessor or assessors, chief assessor or the 
State Tax Assessor. 
Sec. 7.  36 MRSA §708, as amended by PL 1973, c. 620, §17, is further amended 
to read: 
§708.  Assessors to value real estate and personal property 
The Except as provided in section 305, the assessors and the chief assessor of a 
primary assessing area shall ascertain as nearly as may be the nature, amount and value as 
of the first day of each April of the real estate and personal property subject to be taxed, 
and shall estimate and record separately the land value, exclusive of buildings, of each 
parcel of real estate. 
Sec. 8.  36 MRSA §843, sub-§1, as amended by PL 1995, c. 262, §4, is further 
amended to read: 
1.  Municipalities.  If Except as otherwise provided in subsection 1-A, if a 
municipality has adopted a board of assessment review and 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, and, if the 
board thinks the applicant is over-assessed, the applicant is granted such reasonable 
abatement as the board thinks proper.  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 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.  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 Superior Court as if there had been a written denial. 
Sec. 9.  36 MRSA §843, sub-§1-A, as amended by PL 1995, c. 262, §4, is 
repealed and the following enacted in its place: 
1-A.  Nonresidential property of $1,000,000 or greater.  The following provisions 
apply to real property or properties that are used primarily for commercial, industrial or 
business purposes, excluding unimproved land that is not associated with a commercial, 
industrial or business use, with an equalized municipal valuation of $1,000,000 or greater 
either separately or in the aggregate, referred to in this subsection as "nonresidential 
property." 
A.  The taxpayer may waive consideration of a decision involving nonresidential 
property by a local board of assessment review by: 
(1)  Appealing the decision of the assessor or municipal officers directly to the 
State Board of Property Tax Review within 60 days after notice of the decision 
from which the appeal is taken or after the abatement application is deemed 
denied; or 
(2)  Appealing the decision of the assessor or municipal officers directly to the 
Superior Court within 60 days after notice of the decision from which the appeal 
is taken or after the abatement application is deemed denied, in accordance with 
Rule 80B of the Maine Rules of Civil Procedure. 
The State Board of Property Tax Review or Superior Court, as the case may be, shall 
conduct a de novo hearing and make a de novo determination of the merits of the 
case.  If the board or Superior Court determines that the applicant is over-assessed, it 
shall grant such reasonable abatement as the board or Superior Court thinks proper. 
B.  If the owner of nonresidential property elects to appeal the decision of the 
assessors or municipal officers to a local board of assessment review, either party 
may appeal the decision of the local board of assessment review or the primary 
assessing area board of assessment review to: 
(1)  The State Board of Property Tax Review within 60 days after notice of the 
decision from which the appeal is taken or after the application is deemed denied, 
as provided in subsections 1 and 2; or 
(2)  The Superior Court within 60 days after notice of the decision from which 
the appeal is taken or after the abatement application is deemed denied, in 
accordance with Rule 80B of the Maine Rules of Civil Procedure. 
The State Board of Property Tax Review or Superior Court, as the case may be, shall 
conduct a de novo hearing and make a de novo determination of the merits of the 
case. If the board or Superior Court determines that the applicant is over-assessed, it 
shall grant such reasonable abatement as the board or Superior Court thinks proper. 
Sec. 10.  36 MRSA §843, sub-§2, as amended by PL 2001, c. 396, §17, is further 
amended to read: 
2.  Primary assessing areas.  If Except as provided in subsection 1-A, if a primary 
assessing area has adopted a board of assessment review and the assessors or 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, and if the 
board thinks the applicant is over-assessed, the applicant is granted such reasonable 
abatement as the board thinks proper.  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 Either party may appeal the decision of the board of 
assessment review directly to the Superior Court, in accordance with the Maine Rules of 
Civil Procedure, Rule 80B.  If the board of assessment review fails to give written notice 
of its decision within 60 days of the date the application was 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. 
Sec. 11.  36 MRSA §844, sub-§2, as amended by PL 2011, c. 548, §13, is 
repealed and the following enacted in its place: 
2.  Nonresidential property of $1,000,000 or greater.  Notwithstanding subsection 
1, the applicant may appeal the decision of the assessors or the municipal officers on a 
request for abatement with respect to nonresidential property or properties having an 
equalized municipal valuation of $1,000,000 or greater, either separately or in the 
aggregate, to: 
A.  The State Board of Property Tax Review within 60 days after notice of the 
decision from which the appeal is taken or after the application is deemed denied; or 
B.  The Superior Court within 60 days after notice of the decision from which the 
appeal is taken or after the abatement application is deemed denied, in accordance 
with Rule 80B of the Maine Rules of Civil Procedure.  The State Board of Property 
Tax Review or Superior Court, as the case may be, shall conduct a de novo hearing 
and make a de novo determination of the merits of the case. If the board or Superior 
Court determines that the applicant is over-assessed, it shall grant such reasonable 
abatement as the board or Superior Court thinks proper. 
For the purposes of this subsection, "nonresidential property" means property that is used 
primarily for commercial, industrial or business purposes, excluding unimproved land 
that is not associated with a commercial, industrial or business use. 
SUMMARY 
This bill amends Maine's property tax laws by: 
1.  Requiring centralized assessment by the Department of Administrative and 
Financial Services, Maine Revenue Services of complex manufacturing facilities valued 
at more than $10,000,000; 
2.  Allowing appeals of decisions of an assessor or municipal officers involving 
nonresidential property with a value of more than $1,000,000 directly to the Superior 
Court and decisions of the State Board of Property Tax Review directly to the Law Court; 
3.   Limiting to 30 the number of interrogatories or document requests that an 
assessor may require a taxpayer with property liable to taxation or seeking an exemption 
under the business equipment tax exemption program to answer in writing; and 
4.  Changing the membership specifications of the State Board of Property Tax 
Review to remove the requirement that a member be an engineer and instead requires 
members who are representatives of business and industry who are experienced in 
taxation, finance or valuation matters.