Sec. 1. 36 MRSA c. 105, sub-c. 2-C is enacted to read:

SUBCHAPTER 2-C

PENALTY ON GAINS FROM THE SALE OR EXCHANGE

OF LAND FOR TIMBER HARVESTING

§595.__Definitions

As used in this subchapter, unless the context otherwise indicates, the following terms have the following meanings.

1.__Land for timber harvesting.__"Land for timber harvesting" means all land, whether or not improved, greater than 100 acres.__"Land for timber harvesting" also means timber or rights to timber on land greater than 100 acres when that timber or those timber rights are sold within 10 years of purchase, provided the underlying land is also sold within 10 years.

2.__Sale or exchange.__"Sale or exchange" means any transfer of title to land for a consideration.

3.__Title.__"Title" means interest in property that endures for an unlimited period of time, including, but not limited to, an estate in fee simple, a life estate, a perpetual leasehold and a perpetual easement, except as modified or enlarged by explicit provisions of this subchapter and as limited in this subchapter to land for timber harvesting.__The transfer of an option for the sale or exchange of land for timber harvesting is considered a transfer of title to land for timber harvesting for the purposes of this subchapter.

4.__Transfer.__"Transfer" means a grant, assignment, conveyance, will, trust, decree of court or any other means of transferring title to property or vesting title to property in any person.

5.__Underlying land.__"Underlying land" means the land for timber harvesting from which timber or timber rights have been separated.

§596.__Penalty imposed

1.__Penalty imposed.__There is imposed, in addition to all other taxes imposed by this Title, a penalty on gains from the sale or exchange of land for timber harvesting.