An Act To Change the Penalty When Land under the Maine Tree Growth Tax Law Is Transferred
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA §581-H is enacted to read:
§ 581-H. Transfer of land
1. Notification by owner. An owner of land classified under this subchapter that intends to transfer all or a portion of the land shall provide the following notifications.
A. The owner shall notify an intended purchaser that the land is subject to a withdrawal penalty if the intended transferee fails to make the notification required under subsection 2 or the use of the land is changed by the transferee so that the land no longer qualifies for classification under this subchapter.
B. The owner shall notify the assessor of the intent to transfer the land.
2. Notification by intended transferee. An intended transferee of land subject to classification under this subchapter who intends to maintain the classification of the land under this subchapter shall notify the assessor of that intent prior to completion of the sale.
3. Assessment of penalty. If land or a portion of land subject to the notification requirements under subsection 1 is transferred, unless the intended transferee of the land notifies the assessor under subsection 2 that the transferee intends to maintain eligibility of the land for classification under this subchapter, the land or portion of the land must be considered withdrawn by the transferor from classification under section 581 prior to completion of the transfer and the penalty assessed under section 581 against the transferor of the land.
summary
This bill provides that if land classified under the Maine Tree Growth Tax Law is to be transferred, the owner must notify the assessor of the intended transfer and the intended transferee of a potential withdrawal penalty. If land is transferred, a withdrawal penalty must be assessed against the transferor unless the intended transferee notifies the assessor of intent to maintain eligibility of the land for tree growth classification.