An Act to Make Changes to the Farm and Open Space Tax Law
Maine Legislature, Session 131, LD 1648
Committee: Taxation
Sponsors: BOYLE, ZEIGLER, LAWRENCE, BABIN, GERE, PIERCE
Amends: 36 MRSA §1102, 36 MRSA §1106-A, 36 MRSA §1106-B, 36 MRSA §1109, 36 MRSA §1114, 36 MRSA §1118

Legislative Document
No. 1648
H.P. 1060
House of Representatives, April 13, 2023
An Act to Make Changes to the Farm and Open Space Tax Law
Reference to the Committee on Taxation suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative BOYLE of Gorham.
Cosponsored by Representative ZEIGLER of Montville, Senator LAWRENCE of York and
Representatives: BABIN of Fort Fairfield, GERE of Kennebunkport, Senator: PIERCE of 
Cumberland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  36 MRSA §1102, sub-§1-A is enacted to read:
1-A.  Carbon conservation management plan.  "Carbon conservation management 
plan" means a written agreement between the landowner and the Department of 
Agriculture, Conservation and Forestry that describes strategies to be used on a parcel of 
land at least 10 acres in size to increase carbon storage or improve carbon conservation and 
that meets the requirements of section 1106-B, subsection 3, paragraph A, subparagraph 
(1).
Sec. 2.  36 MRSA §1102, sub-§10, as enacted by PL 2003, c. 619, §1 and amended 
by PL 2011, c. 657, Pt. W, §5, is further amended to read:
10.  Wildlife habitat management plan.  "Wildlife habitat management plan" means 
land that is subject to a written management agreement between the landowner and either 
the Department of Inland Fisheries and Wildlife or the Department of Agriculture, 
Conservation and Forestry to ensure that the habitat benefits provided by the land are not 
lost and that meets the requirements of section 1106-B, subsection 3, paragraph A, 
subparagraph (2).  Management agreements may be revised or updated by mutual consent 
of both parties at any time.  Management agreements must be renewed at least every 10 
years.  "Wildlife habitat" must also meet one of the following criteria:
A.  The land is designated by the Department of Inland Fisheries and Wildlife as 
supporting important wildlife habitat;
B.  The land supports the life cycle of any species of wildlife as identified by the 
Department of Inland Fisheries and Wildlife;
C.  The land is identified by the Department of Agriculture, Conservation and Forestry 
as supporting a natural vegetation community; or
D.  The land is designated as a resource protection area in a comprehensive plan, zoning 
ordinance or zoning map.
Sec. 3.  36 MRSA §1106-A, as amended by PL 2017, c. 288, Pt. A, §43, is repealed.
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 valuation determined.  The State Tax Assessor shall determine the 
100% open space valuation for each county by adding the 100% valuation per acre for each 
forest type for each county obtained pursuant to section 576 and multiplying the sum by 
2/3.
2.  Additional 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 value it would have if enrolled in the Maine Tree Growth Tax Law 
and the open space valuation may not exceed just value as determined pursuant to section 
701-A.
A.  Public access open space is eligible for a 25% reduction in the open space 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;
(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 is eligible for a 25% reduction in the open space 
valuation.  For purposes of this paragraph, "permanently protected open space" 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 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 that is the subject of a wildlife habitat management plan is eligible for 
a 25% reduction in the open space valuation as long as the requirements of subsection 
are met.
D.  Open space that is the subject of a carbon conservation management plan is eligible 
for a 25% reduction in the open space valuation as long as the requirements of 
subsection 3 are met.
3.  Management plans.  A landowner seeking an additional reduction in the open space 
valuation for a parcel pursuant to subsection 2, paragraph C or D shall comply with this 
subsection.
A. The landowner shall have prepared a carbon conservation management plan or a 
wildlife habitat management plan for the parcel for which the landowner is seeking an 
additional reduction pursuant to subsection 2 that complies with the following.
(1) For a carbon conservation management plan, the plan must describe strategies 
to be used on a parcel of land at least 10 acres in size to increase carbon storage or 
improve carbon conservation. The plan must be signed by a licensed forester or 
soil scientist and submitted to the Department of Agriculture, Conservation and 
Forestry for approval.  A carbon conservation management plan may be revised or 
updated by mutual agreement between the landowner and the department.  A 
carbon conservation management plan must be renewed by the landowner at least 
once every 10 years.
(2) For a wildlife habitat management plan, the plan must describe strategies to 
ensure that the habitat benefits provided by the land are not lost.  The plan must be 
submitted to either the Department of Agriculture, Conservation and Forestry or 
the Department of Inland Fisheries and Wildlife for approval.  Wildlife habitat 
management agreements may be revised or updated by mutual consent of both 
parties at any time.  A wildlife habitat management agreement must be renewed at 
least once every 10 years.
B.  The landowner shall file a sworn statement with the municipal assessor for a parcel 
in a municipality or with the State Tax Assessor for a parcel in the unorganized territory 
that a carbon conservation management plan, if seeking an additional reduction under 
subsection 2, paragraph D, or a wildlife habitat management plan, if seeking an 
additional reduction under subsection 2, paragraph C, has been prepared for the parcel.
C.  The landowner shall comply with the relevant management plan prepared pursuant 
to paragraph A and shall submit every 10 years to the municipal assessor in a 
municipality or the State Tax Assessor for parcels in the unorganized territory a 
statement from the state agency with which the agreement was made that the landowner 
is managing the parcel according to schedules in the plan prepared pursuant to 
paragraph A.
D.  When a parcel of land taxed under this subchapter is transferred to a new owner, 
within one year of the date of transfer, the new landowner must file with the municipal 
assessor or the State Tax Assessor for land in the unorganized territory one of the 
following:
(1) A sworn statement indicating that a new management plan has been prepared 
and approved pursuant to paragraph A; or
(2) A sworn statement that the land is being managed in accordance with the 
management plan prepared for the previous landowner.
4.  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 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 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 lands.
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.
Sec. 5.  36 MRSA §1109, sub-§3, as amended by PL 2011, c. 240, §8 and c. 657, 
Pt. W, §5, is further amended to read:
3.  Open space land qualification.  The owner or owners of land who believe that land 
is open space land as defined in section 1102, subsection 6 shall submit a signed schedule 
on or before April 1st of the year in which that land first becomes subject to taxation under 
this subchapter to the assessor on a form prescribed by the State Tax Assessor that must 
contain a description of the land, a general description of the use to which the land is being 
put and other information required by the assessor to aid the assessor in determining 
whether the land qualifies for classification as open space land and for which of the 
valuation categories additional reductions set forth in section 1106‑A 1106-B the land is 
eligible.  The assessor shall determine whether the land is open space land as defined in 
section 1102, subsection 6 and, if so, that land must be classified as open space land and 
subject to taxation under this subchapter.  In determining whether the restriction of the use 
or preservation of the land provides a public benefit in one of the areas set forth in section 
1102, subsection 6, the assessor shall consider all facts and circumstances pertinent to the 
land and its vicinity.  A factor that is pertinent to one application may be irrelevant in 
determining the public benefit of another application. A single factor, whether listed below 
or not, may be determinative of public benefit.  Among the factors to be considered are:
A.  The importance of the land by virtue of its size or uniqueness in the vicinity or 
proximity to extensive development or comprising an entire landscape feature;
B.  The likelihood that development of the land would contribute to degradation of the 
scenic, natural, historic or archeological character of the area;
C.  The opportunity of the general public to appreciate significant scenic values of the 
land;
D.  The opportunity for regular and substantial use of the land by the general public for 
recreational or educational use;
E.  The importance of the land in preserving a local or regional landscape or resource 
that attracts tourism or commerce to the area;
F.  The likelihood that the preservation of the land as undeveloped open space will 
provide economic benefit to the town by limiting municipal expenditures required to 
service development;
G.  Whether the land is included in an area designated as open space land or resource 
protection land on a comprehensive plan or in a zoning ordinance or on a zoning map 
as finally adopted;
H.  The existence of a conservation easement, other legally enforceable restriction, or 
ownership by a nonprofit entity committed to conservation of the property that will 
permanently preserve the land in its natural, scenic or open character;
I.  The proximity of other private or public conservation lands protected by permanent 
easement or ownership by governmental or nonprofit entities committed to 
conservation of the property;
J.  The likelihood that protection of the land will contribute to the ecological viability 
of a local, state or national park, nature preserve, wildlife refuge, wilderness area or 
similar protected area;
K.  The existence on the land of habitat for rare, endangered or threatened species of 
animals, fish or plants, or of a high quality example of a terrestrial or aquatic 
community;
L.  The consistency of the proposed open space use with public programs for scenic 
preservation, wildlife preservation, historic preservation, game management or 
recreation in the region;
M.  The identification of the land or of outstanding natural resources on the land by a 
legislatively mandated program, on the state, local or federal level, as particular areas, 
parcels, land types or natural resources for protection, including, but not limited to, the 
register of critical areas under Title 12, section 544‑B; the laws governing wildlife 
sanctuaries and management areas under Title 12, section 10109, subsection 1 and 
sections 12706 and 12708; the laws governing the State's rivers under Title 12, chapter 
200; the natural resource protection laws under Title 38, chapter 3, subchapter 1, article 
5‑A; and the Maine Coastal Barrier Resources Systems under Title 38, chapter 21;
N.  Whether the land contains historic or archeological resources listed in the National 
Register of Historic Places or is determined eligible for such a listing by the Maine 
Historic Preservation Commission, either in its own right or as contributing to the 
significance of an adjacent historic or archeological resource listed, or eligible to be 
listed, in the National Register of Historic Places; or
O.  Whether there is a written management agreement between the landowner and the 
Department of Inland Fisheries and Wildlife or the Department of Agriculture, 
Conservation and Forestry as described in section 1102, subsection 10. 1106-B, 
subsection 3, paragraph A, subparagraph (1) or (2); or
P.  Whether the land is currently enrolled in the Maine Tree Growth Tax Law.
If a parcel of land for which the owner or owners are seeking classification as open space 
contains any principal or accessory structures or any substantial improvements that are 
inconsistent with the preservation of the land as open space, the owner or owners in their 
schedule shall exclude from their application for classification as open space a parcel of 
land containing those buildings or improvements at least equivalent in size to the state 
minimum lot size as prescribed by Title 12, section 4807‑A or by the zoning ordinances or 
zoning map pertaining to the area in which the land is located, whichever is larger.  For the 
purposes of this section, if any of the buildings or improvements are located within 
shoreland areas as defined in Title 38, chapter 3, subchapter 1, article 2‑B, the excluded 
parcel must include the minimum shoreland frontage required by the applicable minimum 
lot standards under the minimum guidelines established pursuant to Title 38, chapter 3, 
subchapter 1, article 2‑B or by the zoning ordinance for the area in which the land is located, 
whichever is larger.  The shoreland frontage requirement is waived to the extent that the 
affected frontage is part of a contiguous shore path or a beach for which there is or will be, 
once classified, regular and substantial use by the public.  The shoreland frontage 
requirement may be waived at the discretion of the legislative body of the municipality if 
it determines that a public benefit will be served by preventing future development near the 
shore or by securing access for the public on the particular shoreland area that would 
otherwise be excluded from classification.
Sec. 6.  36 MRSA §1114, as enacted by PL 1975, c. 726, §2, is amended to read:
§1114.  Application
No person can apply for classification for more than an aggregate total of 15,000 acres 
under this subchapter. The classification of farmland or open space land hereunder shall 
continue under this chapter continues until the municipal assessor, or State Tax Assessor 
in the unorganized territory, determine determines that the land no longer meets the 
requirements of such classification.
Sec. 7.  36 MRSA §1118, as amended by PL 1993, c. 452, §14, is further amended 
to read:
§1118.  Appeals and abatements
The denial of an application or an assessment made under this subchapter is subject to 
the abatement procedures provided by section 841.  Appeal from a decision rendered under 
section 841 or a recommended current use value valuation or additional reduction 
established under section 1106‑A 1106-B must be to the State Board of Property Tax 
Review.
Sec. 8.  Application. This Act applies to property tax years beginning on or after 
April 1, 2024.
SUMMARY
This bill establishes a new method for the valuation of land under the farm and open 
space tax law.  It extends eligibility for a reduced valuation to land managed under a carbon 
conservation management plan, which is a written agreement between the landowner and 
the Department of Agriculture, Conservation and Forestry that describes strategies to be 
used on a parcel of land at least 10 acres in size to increase carbon storage or improve 
carbon conservation.
It removes the requirement that wildlife habitat land meet specific criteria to be eligible 
for a reduced valuation, such as being designated by the Department of Inland Fisheries 
and Wildlife as supporting important wildlife habitat or identified by the Department of 
Agriculture, Conservation and Forestry as supporting a natural vegetation community.  
Instead, such land is eligible for a reduced valuation if the landowner establishes and 
complies with a written management agreement between the landowner and either the 
Department of Inland Fisheries and Wildlife or the Department of Agriculture, 
Conservation and Forestry to ensure that the habitat benefits provided by the land are not 
lost.
This bill establishes specific criteria for management plans, including requiring them 
to contain specific strategies for compliance, be sworn to and complied with by the 
landowner and renewed at least once every 10 years.
This bill requires the State Tax Assessor to reimburse municipalities for revenue lost 
as a result of being enrolled under the farm and open space tax law in a manner similar to 
the method of reimbursement under the Maine Tree Growth Tax Law.
This bill also removes the provision limiting to no more than 15,000 acres the amount 
of land that may be enrolled by a landowner under the farm and open space tax law.