An Act Relating to the Valuation of Certain Retail Property
Maine Legislature, Session 129, LD 2045
Committee: Taxation
Sponsors: TIPPING, JACKSON, CARDONE, DAUGHTRY, GROHOSKI, HEPLER, MASTRACCIO, TEPLER, LIBBY
Amends: 36 MRSA §701-A

Legislative Document
No. 2045
H.P. 1456
House of Representatives, January 16, 2020
An Act Relating to the Valuation of Certain Retail Property
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203.
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative TIPPING of Orono.
Cosponsored by President JACKSON of Aroostook and
Representatives: CARDONE of Bangor, DAUGHTRY of Brunswick, GROHOSKI of 
Ellsworth, HEPLER of Woolwich, MASTRACCIO of Sanford, TEPLER of Topsham, Senator: 
LIBBY of Androscoggin.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §701-A, as amended by PL 2007, c. 389, §1, is further amended 
to read:
§701-A.  Just value defined
In the assessment of property, assessors in determining just value are to define this 
term in a manner that recognizes only that value arising from presently possible land use 
alternatives to which the particular parcel of land being valued may be put. In 
determining just value, assessors must consider all relevant factors, including without 
limitation the effect upon value of any enforceable restrictions to which the use of the 
land may be subjected including the effect on value of designation of land as significant 
wildlife habitat under Title 38, section 480-BB, current use, physical depreciation, sales 
in the secondary market, functional obsolescence and economic obsolescence. 
Restrictions include but are not limited to zoning restrictions limiting the use of land, 
subdivision restrictions and any recorded contractual provisions limiting the use of lands. 
The just value of land is determined to arise from and is attributable to legally permissible 
use or uses only.
For the purpose of establishing the valuation of unimproved acreage in excess of an 
improved house lot, contiguous parcels and parcels divided by road, powerline or right-
of-way may be valued as one parcel when:  each parcel is 5 or more acres; the owner 
gives written consent to the assessor to value the parcels as one parcel; and the owner 
certifies that the parcels are not held for sale and are not subdivision lots.
For the purpose of establishing the valuation of a retail sales facility, as defined in 
section 6651, subsection 5, in excess of 20,000 square feet, the property must be valued 
based on its current use or, if the property is vacant, at its highest and best use.  In 
establishing the valuation, assessors shall consider:
1.  Highest and best use.  Sales and rentals of properties exhibiting the same or a 
similar highest and best use, taking into consideration the pool of potential buyers and 
sellers that typically buy or sell properties similar to the property being valued, including 
potential buyers who are investors or owner-occupants; and
2.  Similar properties.  Sales and rentals of properties that are similar to the property 
being valued with regard to age, condition, use, type of construction, location, design, 
physical features and economic characteristics.
SUMMARY
This bill provides that, for property tax purposes, retail sales facilities in excess of 
20,000 square feet must be valued based on their current use compared to similar 
properties in their retail market segment or, if vacant, according to their highest and best 
use.