An Act To Amend the Maine Exclusion Amount in the Estate Tax
Maine Legislature, Session 129, LD 0420
Committee Amendment CA_A-SA_A_S359 (Senate)
Amends: 36 MRSA §4120

SENATE AMENDMENT" f-1" to COMMITTEE AMENDMENT "A" to H.P. 329, 
L.D. 420, Bill, "An Act To Amend the Maine Exclusion Amount in the Estate Tax" 
Amend the amendment by inserting before section 3 the following: 
'Sec. 3. 36 MRSA §4120 is enacted to read: 
§4120. Exclusion for family farms 
1. Exclusion from estate tax for family farms; definitions. Notwithstanding any 
provision of law to the contrary, farmland that is part of an estate of a decedent dying on 
or after January 1, 2020 that is transferred to a family member of the decedent is excluded 
from taxation under this chapter as provided in this section. For purposes of this section, 
"farmland" means land that is or could be classified as farmland under chapter 105, 
subchapter 10 and includes personal property that is exempt from property tax under 
section 655, subsection 1, paragraph C, D, Mor 0. For purposes of this section, "family 
member" means, whether by blood or legal adoption, the decedent's: brother or sister or 
the spouse of a brother or sister; parent or grandparent or the spouse of a parent or 
grandparent; ancestor; or lineal descendant. 
2. Requirements for exclusion; report. In order to qualify for the exclusion from 
the estate tax pursuant to this section: 
A. The farmland must be transferred to a family member; 
B. For at least 5 years following the transfer, the farmland must remain the property 
of the family member to whom the farmland was transferred or, in the event of death 
of that transferee, a family member of that transferee; and 
C. During the 5 years following the transfer, the land transferred must continue to 
meet the requirements for classification as farmland under chapter 105, subchapter 
10, except that the gross income requirements of section 1102, subsection 4 must be 
met for every year of the 5 years following transfer. 
A family member to whom farmland is transferred who wishes to claim the exclusion 
under this section shall file a report annually for the 5 years following the transfer with 
the assessor certifying that the farmland continues to qualify for the exclusion. 
SENA TE AMENDMENT 
. 24 
SENATE AMENDMENT" yY' to COMMITTEE AMENDMENT "A" to H.P. 329, L.D. 420 ( \ 
··~~ ') "1'; 
3. Failure to maintain requirements for exclusion. If at any time during the 5 
years following the decedent's death the farmland transferred does not meet the 
requirements of subsection 2, the owner of the farmland is subject to the applicable tax 
specified in this chapter based on the fair market value of the farmland and property as of 
the date of the decedent's death. 
4. Rules. The assessor shall adopt routine technical rules pursuant to Title 5, chapter 
375, subchapter 2-A to implement this section, including determining the method of 
providing certification of qualification for the exclusion provided by this section.' 
Amend the amendment by relettering or renumbering any nonconsecutive Part letter 
or section number to read consecutively. 
SUMMARY 
This amendment, which is based on Pennsylvania law, excludes from the estate tax 
farmland transferred to a family member. Farmland is defined as real estate that qualifies 
as farmland under the farmland and open space tax law and includes personal property, 
such as agricultural produce, livestock and farm machinery, that is exempt from taxation. 
Family member is broadly defined to be, whether by blood or adoption, a sibling, parent, 
spouse, grandparent, ancestor or lineal descendant. 
The land must continue to qualify as farmland for the 5 years following the death of 
the decedent, including producing an annual gross income from farming activities of at 
least $2,000. If at any time during the 5 years that land does not meet the qualifications, 
the owner is required to pay the estate tax based on the value of the property at the time · 
of the decedent's death. 
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SPONSORED BY: 
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(Senator LIBBY) 
COUNTY: Androscoggin 
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FISCAL ~OTE REQUIRED 
(Set! attached) .. ~ 
SENATE AMENDMENT 
Net Cost (Savings) 
General Fund 
,,evenue 
General Fund 
Approved: 06/19/19 feac:.. 
LD420 
LR 573(04) 
An Act To Amend the Maine Exclusion Amount in the Estate Tax 
Fiscal Note for Senate Amendment "Ff' to Committee Amendment "A" CS- 3 sc:) 
Sponsor: Sen. Libby of Androscoggin 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2019-20 
FY 2020-21 
$0 
$75,000 
$0 
($75,000) 
Projections 
FY 2021-22 
$75,000 
($75,000) 
Projections 
FY 2022-23 
$75,000 
($75,000) 
Fiscal Detail and Notes 
This amendment excludes from estate tax farmland that is transferred to a family member. The increase in General 
Fun revenue shown in the committee amendment would be reduced by $75,000 beginning in fiscal year 2020-21. 
LR0573(04) - Fiscal Note - Page 1 of 1