An Act to Make Changes to the Farm and Open Space Tax Law
Maine Legislature, Session 131, LD 1648
Committee Amendment CA_A_H945 (House)
Amends: 36 MRSA §1106-B, 36 MRSA §1114

COMMITTEE AMENDMENT"?\" to H.P. 1060, L.D. 1648, "An Act to Make 
Changes to the Farm and Open Space Tax Law" 
Amend the bill by striking out all of sections 1 and 2, 
Amend the bill by striking out all of section 4 and inserting the following: 
'Sec. 4. 36 MRSA §1106-B is enacted to read: 
§1106-B. Valuation of open space land 
For purposes of this subchapter, open space land is valued according to and subject to 
the provisions of this section. 
1. Open space land valuation determined. The State Tax Assessor shall determine 
the 100% open space land valuation for each county by doubling the 100% valuation per 
acre for the highest value forest type for each county obtained pursuant to section 576. 
2, Reduction. A landowner may apply for up to 2 of the following additional 
reductions in valuation specified in this subsection except that, notwithstanding any 
provision of law to the contrary, the value of forested open space land may not be reduced 
to less than the highest value it would have if enrolled in the Maine Tree Growth Tax Law 
and the open space land valuation may not exceed just value as determined pursuant to 
section 701-A. 
A. Public access open space land is eligible for a 25% reduction in the open space land 
valuation if the landowner agrees to refrain from taking action to discourage or prohibit 
daytime, nonmotorized and nondestructive public use of that land. The landowner may 
permit, but is not obligated to permit as a condition of qualification under this 
paragraph, hunting, snowmobiling, overnight use or other more intensive outdoor 
recreational uses, The landowner, without disqualifying land under this paragraph, may 
impose temporary or localized public access restrictions to: 
(1) Protect active habitat of endangered species listed under Title 12, chapter 925, 
subchapter 3: 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "Pr to H.P. 1060, L.D. 1648 
(2) Prevent destruction or harm to fragile protected natural resources under Title 
38, chapter 3, subchapter 1, article 5-A; or 
(3) Protect a recreational user from any hazardous area. 
B. Permanently protected open space land is eligible for a 25% reduction in the open 
space land valuation. For purposes of this paragraph, "permanently protected open 
space land" is an area of open space land that is subject to restrictions prohibiting 
building development under a perpetual conservation easement pursuant to Title 33, 
chapter 7, subchapter 8-A or as an open space land preserve owned and operated by a 
state or federal natural resource agency or a nonprofit entity in accordance with section 
1109, subsection 3, paragraph H. 
C. Open space land on which an approved wildlife enhancement practice has been 
completed and certified is eligible for a 20% reduction in the open space land valuation 
as long as the parcel remains in the program under this subchapter. 
D. 
Open space land on which an approved climate-friendly practice has been 
completed and certified is eligible for a 20% reduction in the open space land valuation 
as long as the parcel remains in the program under this subchapter. 
3. Municipal reimbursement. The State Tax Assessor shall distribute reimbursement 
under this subsection to each municipality in proportion to the product of the reduced open 
space land valuation of the municipality multiplied by the property tax burden of the 
municipality. 
As used in this subsection. unless the context otherwise indicates, the following terms have 
the following meanings. 
A. 
"Average value of undeveloped land" means the current regional per acre 
undeveloped land value as determined for state valuation purposes or the current local 
per acre undeveloped land value as determined for state valuation purposes. whichever 
is less. 
B. "Property tax burden" means the total real and personal property taxes assessed in 
the most recently completed municipal fiscal year. except the taxes assessed on 
captured value within a tax increment financing district, divided by the latest state 
valuation certified to the Secretary of State. 
C. "Reduced open space land valuation" means the difference between the average 
value of undeveloped land and the average value of classified open space land 
multiplied by the total number of acres of classified open space land. 
D. "Undeveloped land" means rear acreage and unimproved nonwaterfront acreage 
that is not: 
(1) Classified under the laws governing a current use program; 
(2) A base lot; or 
(3) Wasteland. 
4. Municipal payments. The State Tax Assessor shall determine annually the amount 
of acreage in each municipality that is classified open space land. Each municipality is 
entitled to annual payments distributed in accordance with this section from money 
appropriated by the Legislature if it submits a completed annual return in accordance with 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" I\:' to H.P. 1060, L.D. 1648 
section 383. The State Tax Assessor shall pay, by October 15th of the year following the 
submission of the annual return, any municipal claim found to be in satisfactory form. The 
total municipal reimbursement appropriation amount is equal to 90% of the tax lost as a 
result of this subchapter. A municipality that fails to achieve the minimum assessment 
ratio established in section 327 loses 10% of the reimbursement provided by this section 
for each one percentage point by which the minimum assessment ratio falls below the ratio 
established in section 327. For purposes of this subsection, "classified open space land" 
means open space land classified pursuant to this subchapter. For the purposes of this 
subsection, "tax lost" means the tax that would have been assessed. but for this subchapter. 
on classified open space land if the land was assessed according to the current regional per 
acre undeveloped land value as determined for state valuation purposes, or according to the 
current local per acre undeveloped land value as determined for state valuation purposes. 
whichever is less. minus the tax that was actually assessed on the same land in accordance 
with this subchapter and adjusted for the aggregate municipal savings in required 
educational costs attributable to the reduction in state valuation as a result of this 
subchapter. 
5. Rules. The Bureau of Revenue Services, in consultation with the Department of 
Agriculture. Conservation and Forestry and the Department of Inland Fisheries and 
Wildlife. shall adopt rules to carry out the purposes of subsection 2. paragraphs C and D. 
The rules must define wildlife enhancement practices and climate-friendly practices. the 
standards for each practice. the method of certifying that a practice has been completed. 
including the qualifications of the certifier, and the process of reporting to the municipal 
assessor. or the State Tax Assessor in the unorganized territory, on the successful 
implementation of an approved practice. The bureau shall consider appropriate practices 
and standards identified by the United States Department of Agriculture, Natural Resources 
Conservation Service, but the bureau may adopt modifications to those practices and 
standards and adopt additional eligible practices and standards. Rules adopted pursuant to 
this subsection are routine technical rules under Title 5, chapter 375, subchapter 2-A.' 
Amend the bill in section 5 in subsection 3 in paragraph O in the last 2 lines (page 5, 
lines 25 and 26 in L.D.) by striking out the following: "1102, sahseotioB 10. 1106-B, 
subsection 3, paragraph A, subparagraph (1) or (2): or" and inserting the following: '1102, 
subsection 107: or' 
Amend the bill by striking out all of section 6 and inserting the following: 
'Sec. 6. 36 MRSA §1114, as enacted by PL 1975, c. 726, §2, is amended to read: 
§1114. Application 
No persoB oaa A landowner may not apply for classification for more than an aggregate 
total of 15,000 acres under this subchapter. unless the landowner is a nonprofit organization 
that has been determined by the United States Internal Revenue Service to be exempt from 
taxation under Section 501(c)(3) of the Code. The classification of farmland or open space 
land hereuH:der shall oon-tiBue under this subchapter continues until the municipal assessor, 
or State Tax Assessor in the unorganized territory, dotemiiBe determines that the land no 
longer meets the requirements of sueh the classification.' 
Amend the bill in section 8 in the last line (page 6, line 19 in L.D.) by striking out the 
following: "2024" and inserting the following: '2025' 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" /Jc' to H.P. 1060, L.D. 1648 
Amend the bill by inserting after section 8 the following: 
'Sec. 9. Appropriations and allocations. The following appropriations and 
allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Open Space Tax Reimbursement N488 
Initiative: Provides one-time funding to reimburse municipalities for state-mandated costs 
related to changes to the open space tax program. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
Revenue Services, Bureau of 0002 
2023-24 
$0 
$0 
2024-25 
$17,500 
$17,500 
Initiative: Provides one-time funding for computer programming associated with changes 
to the open space tax program. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
ADMINISTRATIVE AND FINANCIAL 
SERVICES, DEPARTMENT OF 
DEPARTMENT TOTALS 
GENERAL FUND 
DEPARTMENT TOTAL-ALL FUNDS 
2023-24 
$0 
$0 
2023-24 
$0 
$0 
2024-25 
$122,000 
$122,000 
2024-25 
$139,500 
$139,500 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section 
number to read consecutively. 
SUMMARY 
This amendment changes the method for the valuation of open space land under the 
farm and open space tax law. It changes the method of calculating the valuation of wildlife 
habitat land to incorporate specific criteria for a reduced valuation, and it adds as a category 
open space land on which an approved climate-friendly practice has been approved and 
certified. It provides a process for reimbursing municipalities for 90% of tax lost as a result 
of the classification of open space land. 
The amendment requires the Department of Administrative and Financial Services, 
Bureau of Revenue Services, in consultation with the Department of Agriculture, 
Conservation and Forestry and the Department of Inland Fisheries and Wildlife, to adopt 
routine technical rules necessary for carrying out the changes in the Maine Revised 
COMMITTEE AMENDMENT 
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COMMITTEE AJ:vffiNDMENT '¥\ "to H.P. 1060, L.D. 1648 
Statutes, Title 36, section 1106-B, subsection 2, paragraphs C and D and changes the 
application date from April 1, 2024 to April 1, 2025. 
The amendment allows a landowner determined to be a 501(c)(3) nonprofit 
organization by the United States Internal Revenue Service to apply for classification for 
more than an aggregate total of 15,000 acres under the laws governing the valuation of 
open space land. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Revised: 04/05/24 feac:.. 
LD 1648 
LR 1490(02) 
An Act to Make Changes to the Farm and Open Space Tax Law 
Fiscal Note for Bill as Amended by Committee Amendment ''Pc' ('r4--qlf~) 
Committee: Taxation 
Net Cost (Savings) 
General Fund 
Appropriations/ Allocations 
General Fund 
State Mandates 
Fiscal Note Required: Yes 
Fiscal Note 
State Mandate - Funded 
FY2023-24 
$0 
$0 
FY2024-25 
$139,500 
$139,500 
Projections 
FY2025-26 
$0 
$0 
Required Activity 
Unit Affected 
Requires municipalities to reprocess program applications for parcels of land in the 
Municipality 
Open Space program based on new eligibility criteria and program classifications. 
Projections 
FY2026-27 
$1,150,000 
$1,150,000 
Local Cost 
$17,500 
The required local activities in this bill may represent a state mandate pursuant to the Constitution of Maine. If the bill 
does require a local unit of government to expand or modify its activities so as to necessitate additional expenditures 
from local revenue, the state mandate provisions of the Constitution of Maine require either: (1) General Fund 
appropriations be provided to fund at least 90% of any additional necessitated local costs of the mandate; or (2) a 
Mandate Preamble be added to the bill and two-thirds of the members of each House vote to exempt the mandate from 
the funding requirement. If the bill does represent a state mandate and neither one of these actions occurs, th~ Jqca,1 :, . : 
units of government will not be required to implement the mandated activities. 
Fiscal Detan and Notes 
':, 
This bill makes changes to the Open Space property tax program and establishes a requirement for state 
•. , reimbursement to municipalities for a portion of municipal property tax revenue loss associated with the program for 
tax years·beginning on or after April 1, 2025. For certain municipalities, the state reimbursement amount may be less 
than the amount of revenue lost due to the changes to the Open Space program, resulting in a net reduction in 
., . municipal revenue, Ongoing General Fund appropriations to reimburse muncipalities for revenue loss will be requir1. .. 
beginning in fiscal year 2026-27. 
LR1490(02) - Fiscal Note - Page 1 of2 
The bill includes a one-time General Fund appropriation to the Department of Administrative and Financial Services, 
Bureau of Revenue Services of $17,500 in fiscal year 2024-25 to reimburse municipa:lities for 100% of the state 
mandated costs associated with administering new eligibility criteria and program classifications to receive reduction~ 
in land valuation under the Open Space program. The bill also includes a one-time General Fund appropriation to the· 
Bureau of $122,000 in fiscal year 2024-25 for computer programming costs to implement changes to the program:··, 
Any additional costs to the Department of Agriculture, Conservation and Forestry or the Department of Inland 
Fisheries and Wildlife from the provisions of this bill are expected to be minor and can be absorbed within existing, 
budgeted resources, 
• 
LR1490(02) - Fiscal Note - Page 2 of2