Amend the amendment by inserting before section 3 the following:
‘Sec. 3. 36 MRSA §4120 is enacted to read:
Amend the amendment by relettering or renumbering any nonconsecutive Part letter or section number to read consecutively.
This amendment, which is based on Pennsylvania law, excludes from the estate tax farmland transferred to a family member. Farmland is defined as real estate that qualifies as farmland under the farmland and open space tax law and includes personal property, such as agricultural produce, livestock and farm machinery, that is exempt from taxation. Family member is broadly defined to be, whether by blood or adoption, a sibling, parent, spouse, grandparent, ancestor or lineal descendant.
The land must continue to qualify as farmland for the 5 years following the death of the decedent, including producing an annual gross income from farming activities of at least $2,000. If at any time during the 5 years that land does not meet the qualifications, the owner is required to pay the estate tax based on the value of the property at the time of the decedent's death.