Sec. 1. 36 MRSA §1102, sub-§4, as amended by PL 1987, c. 728, §1, is further amended to read:

4. Farmland. "Farmland" means any tract or tracts of land, including woodland and wasteland, of at least 5 contiguous acres on which farming or agricultural activities, either by the owner or a lessee, have produced a gross income of at least $2,000 per year in one of the 2, or 3 of the 5, calendar years preceding the date of application for classification.

Gross income as used in this section includes the value of commodities produced for consumption by the farm household. Any applicant for assessment under this subchapter bears the burden of proof as to his the applicant's qualification.

SUMMARY

Current law provides a tax basis reduction to farmland by basing the value of the land on its use as a farm rather than on the just value of the property. In order to qualify, the farm must have produced a gross income of at least $2,000 per year in one of the 2, or 3 of the 5, previous years.

This bill clarifies that the yearly income of at least $2,000 may be met by farming or agricultural activities of either the owner or a lessee of the farm.