An Act To Amend the Farm and Open Space Tax Law
Sec. 1. 36 MRSA §1102, sub-§4-A is enacted to read:
Sec. 2. 36 MRSA §1105-A is enacted to read:
§ 1105-A. Valuation of farm-related structures
The municipal assessor, chief assessor or State Tax Assessor for the unorganized territory shall establish the 100% valuation of a farm-related structure based on the current use value of the farm-related structure as established by the Department of Agriculture, Food and Rural Resources as provided in section 1119. The values may not reflect development or market value for purposes other than agricultural or horticultural use. The values may not reflect value attributable to road frontage or shore frontage.
Sec. 3. 36 MRSA §1109, sub-§1, as amended by PL 1987, c. 728, §6, is further amended to read:
The assessor shall record, in the municipal office of the town in which the farmland is located, the value of the farmland and any farm-related structures as established under this subchapter and the value at which the farmland and any farm-related structures would have been assessed had it they not been classified under this subchapter.
Sec. 4. 36 MRSA §1109, sub-§4, as amended by PL 2007, c. 438, §27, is further amended to read:
The assessor or the assessor's duly authorized representative may enter and examine lands or farm-related structures subject to taxation under this subchapter and may examine any information submitted by the owner or owners.
The assessor may require the owner to respond within 60 days of the receipt of notice in writing by certified mail, return receipt requested, to written questions or interrogatories the assessor considers necessary to obtain material information about those lands or farm-related structures. If the assessor determines that the required material information regarding those lands or farm-related structures cannot reasonably be obtained through written questions or interrogatories, the assessor may require the owner, upon notice in writing by certified mail, return receipt requested, or by another method that provides actual notice, to appear before the assessor at a reasonable time and place designated by the assessor and answer questions or interrogatories the assessor considers necessary to obtain material information about those lands or farm-related structures.
If the owner of a parcel of land subject to taxation under this subchapter fails to submit the schedules required by this section, fails to respond to written questions or interrogatories of the assessor as provided in this subsection or fails to appear before the assessor to respond to questions or interrogatories as provided in this subsection, that owner or owners are deemed to have waived all rights of appeal.
Sec. 5. 36 MRSA §1109, sub-§5, as repealed and replaced by PL 2007, c. 438, §28, is amended to read:
If the owner fails to report to the assessor as required by this subsection, the assessor shall assess those taxes that should have been paid, shall assess the penalty provided in section 1112 and shall assess an additional penalty equal to 25% of the penalty provided in section 1112. The assessor may waive the additional penalty for cause.
Sec. 6. 36 MRSA §1109, sub-§6, as amended by PL 1977, c. 467, §11, is further amended to read:
Sec. 7. 36 MRSA §1110, as repealed and replaced by PL 1977, c. 696, §269, is amended to read:
§ 1110. Reclassification
Land or a farm-related structure subject to taxes under this subchapter may be reclassified as to land classification by the municipal assessor, chief assessor or State Tax Assessor upon application of the owner with a proper showing of the reasons justifying that reclassification or upon the initiative of the respective municipal assessor, chief assessor or State Tax Assessor where the facts justify the same. In the event that the municipal assessor, chief assessor or State Tax Assessor determines, upon his such assessor's own initiative, to reclassify land or a farm-related structure previously classified under this subchapter, he such assessor shall provide to the owner or owners of the land by certified mail, return receipt requested, notice of his the intention to reclassify that land or a farm-related structure and the reasons therefor : .
Sec. 8. 36 MRSA §1112, first ¶, as repealed and replaced by PL 1987, c. 728, §9, is amended to read:
Any change in use disqualifying land or a farm-related structure for classification under this subchapter shall cause causes 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. 9. 36 MRSA §1112, 2nd ¶, as amended by PL 1999, c. 731, Pt. Y, §5, is further amended to read:
For land that has been classified as farmland under this subchapter, 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. For a farm-related structure that has been classified under this subchapter, the penalty is the recapture of the taxes that would have been paid on the farm-related structure 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 a farm-related structure 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 equal annual installments with interest at the rate set by the town to begin 60 days after the date of assessment. Notwithstanding section 943, for an owner paying a penalty under this procedure, the period during which the tax lien mortgage, including interest and costs, must be paid to avoid foreclosure and expiration of the right of redemption is 48 months from the date of the filing of the tax lien certificate instead of 18 months.
Sec. 10. 36 MRSA §1119, as amended by PL 2001, c. 652, §8, is further amended to read:
§ 1119. Valuation guidelines
By December 31, 2000 and biennially thereafter, the Department of Agriculture, Food and Rural Resources working with the Bureau of Revenue Services, representatives of municipal assessors and farmers shall prepare guidelines to assist local assessors in the valuation of farmland and a method for determining the current use value of farm-related structures. The department shall also deliver these the guidelines and method in training sessions for local assessors throughout the State. These guidelines must include recommended values for cropland, orchard land, pastureland and horticultural land, differentiated by region where justified. Any variation in assessment of farmland from the recommended values must be substantiated by the local assessor within the parameters allowed within this subchapter.
summary
This bill allows a farm-related structure on land enrolled in the farm and open space tax program to be taxed at a current use value established by a method determined by the Department of Agriculture, Food and Rural Resources working with the Department of Administrative and Financial Services, Bureau of Revenue Services, representatives of municipal assessors and farmers.