Sec. 1. 36 MRSA §1102, sub-§4, as amended by PL 1999, c. 449, §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 the applicant's qualification.

Sec. 2. 36 MRSA §1112, first ¶, as repealed and replaced by PL 1987, c. 728, §9, is amended to read:

Any change in use disqualifying land for classification under this subchapter shall cause requires a penalty to be assessed by the assessors of the municipality in which the land is located, or by the State Tax Assessor if the land is not within a municipality, in addition to the annual tax in the year of disqualification except when the change is occasioned by a transfer resulting from the exercise or the threatened exercise of the power of eminent domain.

Sec. 3. 36 MRSA §1112, 2nd ¶, as amended by PL 1995, c. 603, §2, is further amended to read:

For land classified as farmland or horticultural land under this subchapter for less than 5 full years, the penalty is equal to the greater of 20% of its assessed fair market value at the time the land is removed from the program or the amount necessary to meet the requirements of the Constitution of Maine, Article IX, Section 8. For land that has been classified as farmland under this subchapter for 5 full years or more, the penalty is the recapture of the taxes that would have been paid on the land for the past 5 years if it had not been classified under this subchapter, less all taxes that were actually paid during those 5 years and interest at the rate set by the town during those 5 years on delinquent taxes. An owner of farmland or horticultural land that has been classified under this subchapter for 5 full years or more may pay any penalty owed under this paragraph in up to 5 a number of equal annual installments equal to the number of years the farmland or horticultural land has been classified under this subchapter with interest at the rate set by the town to begin 60 days after the date of assessment. Notwithstanding