LD 827
pg. 1
LD 827 Title Page An Act To Preserve Farmland and Timberland following the Death of an Owner ... Page 2 of 2
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LR 1617
Item 1

 
Be it enacted by the People of the State of Maine as follows:

 
Sec. 1. 36 MRSA §4080 is enacted to read:

 
§4080.__Exemptions

 
1.__Definitions.__As used in this section, unless the context
otherwise indicates, the following terms have the following
meanings.

 
A.__"Eligible farmland" means a tract of land located in the
State, including woodland and wasteland, of at least 5
contiguous acres on which a farming or agricultural activity
has contributed to a gross annual farming income of at least
$2,000 per year in either 1 of the 2 calendar years or 3 of
the 5 calendar years preceding the death of the owner.__The
farming or agricultural activity and the income derived from
that activity may be earned by either the owner or lessee of
the farmland.__For the purposes of this paragraph, "gross
annual farming income" includes the value of commodities
produced for consumption by the farm household.

 
B.__"Eligible timberland" means a tract of land of at least
10 acres used primarily for the growth of trees to be
harvested for commercial use.__Otherwise eligible timberland
may not be excluded from the provision of this section due
to:

 
(1)__Public recreational use of the land;

 
(2)__A statutory or governmental restriction that
prevents commercial harvesting of trees or requires a
primary use of the land other than commercial
harvesting;

 
(3)__A deed restriction, restrictive covenant or
organizational charter that prevents commercial
harvesting of trees or requires a primary use of the
land other than commercial harvesting and was effective
prior to January 1, 1982; or

 
(4)__Past or present mineral exploration on the land.

 
2.__Exemption.__The tax otherwise imposed by this chapter is
reduced by the amount of the tax attributable to eligible
farmland and eligible timberland included in the taxable estate,
including eligible timberland and eligible farmland held by an
entity to the extent that the value of the entity is included in
the taxable estate.__If the value of a decedent's estate minus
the value of eligible farmland and eligible timberland is below
the amount that would incur federal estate tax, then no tax is
owed under this chapter.


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