| | | Be it enacted by the People of the State of Maine as follows: |
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| | | Sec. 1. 36 MRSA §581, 3rd ¶, as amended by PL 1983, c. 400, §§1 and | | 3, is repealed and the following enacted in its place: |
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| | | In either case, and except when the change in classification | | is occasioned by a transfer to the State or other entity holding | | the power of eminent domain, resulting from the exercise or | | threatened exercise of that power, the withdrawal of land | | subjects the owner to a penalty that is the greater of: |
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| | | 1.__Taxes that would have been assessed.__An amount equal to | | the taxes that would have been assessed on the first day of April | | for the 5 tax years, or any lesser number of tax years starting | | with the year in which the property was first classified, | | preceding such withdrawal had that real estate been assessed in | | each of those years at its fair market value on the date of | | withdrawal minus all taxes paid on that real estate over the | | preceding 5 years, and interest at the legal rate from the date | | or dates on which those amounts would have been payable; or |
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| | | 2.__Fair market value.__An amount computed by multiplying the | | amount, if any, by which the fair market value of the real estate | | on the date of withdrawal exceeds the 100% valuation of the real | | estate pursuant to this subchapter on the preceding April 1st, by | | the following rates: |
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| | | A.__If the real estate was subject to valuation under this | | subchapter for 10 years or less prior to the date of | | withdrawal, the rate is 30%; and |
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| | | B.__If the real estate was subject to valuation under this | | subchapter for more than 10 years prior to the date of | | withdrawal, the rate of the percentage is obtained by | | subtracting 1% from 30% for each full year beyond 10__years | | that the real estate was subject to valuation under this | | subchapter prior to the date of withdrawal until a rate of | | 20% is reached. |
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| | | Fair market value at the time of withdrawal is the assessed value | | of comparable property in the municipality adjusted by the | | municipality's certified assessment ratio. |
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| | | Notwithstanding the provisions of subsections 1 and 2, if the | | land has met the requirements of this subchapter for at least 5 | | years, the assessor has the option of imposing the penalty | | specified in subsections 1 and 2. |
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| | | Sec. 2. 36 MRSA §1112, 2nd ¶, as amended by PL 1995, c. 603, §2, is | | further amended to read: |
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