HP1018
LD 1479
Session - 128th Maine Legislature
 
LR 1634
Item 1
Bill Tracking, Additional Documents Chamber Status

An Act To Modernize and Improve Maine's Property Tax System

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

Sec. 1. 36 MRSA §271, sub-§1,  as amended by PL 1989, c. 503, Pt. B, §165, is further amended to read:

1. Organization; meetings.   The State Board of Property Tax Review, as established by Title 5, section 12004-B, subsection 6, shall consist consists of 15 members appointed by the Governor for terms of 3 years , except for initial appointments which shall be 1/3 of the membership for one year, 1/3 of the membership for 2 years and 1/3 of the membership for 3 years. Vacancies on the board shall must be filled for the remainder of the unexpired term. The membership shall must be equally divided among attorneys, real estate brokers, engineers representatives of business and industry who are experienced in taxation, finance or valuation matters, retired assessors and public members. A public member may not be an assessor, former assessor, municipal official or former municipal official. The board shall annually elect a chair and secretary. The secretary need not be chosen from the members of the board.

Sec. 2. 36 MRSA §271, sub-§7,  as enacted by PL 1985, c. 764, §8, is amended to read:

7. Appeal.   Decisions of the board may be appealed pursuant to the Maine Administrative Procedure Act, Title 5, chapter 375 directly to the Law Court in the same manner as an appeal taken from a judgment of the Superior Court in a civil action.

Sec. 3. 36 MRSA §305, sub-§5,  as amended by PL 2001, c. 564, §3, is further amended to read:

5. Rules.   Promulgate Adopt, after appropriate notice and hearing, all rules and regulations necessary to carry into effect any of its duties and responsibilities; and

Sec. 4. 36 MRSA §305, sub-§6,  as amended by PL 2011, c. 655, Pt. II, §8 and affected by §11 and amended by c. 657, Pt. W, §6, is further amended to read:

6. Report on changes in land ownership.   On or before September 1st of each year, report to the Commissioner of Agriculture, Conservation and Forestry, the Commissioner of Inland Fisheries and Wildlife and the joint standing committee of the Legislature having jurisdiction over public lands on the transfer in ownership of parcels of land 10,000 acres or greater within the unorganized territory of the State. Using information maintained by the State Tax Assessor under section 1602 and section 4641-D, the bureau shall provide information for each transfer that includes:
A. Name of the seller;
B. Name of the buyer;
C. Number of acres transferred;
D. Classification of land;
E. Location by township and county;
F. Sale price; and
G. A brief description of the property . ; and

Sec. 5. 36 MRSA §305, sub-§7  is enacted to read:

7 Valuation of industrial facilities.   Notwithstanding any other provision of this Title to the contrary, determine the just value of real and personal property located at industrial facilities as of the first day of each April beginning in 2018 and provide those just values to each municipality in which an industrial facility is located no later than June 1st of each property tax year. In the bureau's determination of the just value of an industrial facility, the State Tax Assessor may utilize section 706 or any other powers granted to the assessor under this Title to obtain necessary information from the taxpayer. The just value of an industrial facility determined by the bureau is binding on local assessors, subject to equalization. A municipality that is aggrieved by the bureau’s determination of just value of an industrial facility may petition for reconsideration pursuant to section 151. A taxpayer that is aggrieved by the bureau’s determination of just value of an industrial facility may seek an abatement of the municipal assessment pursuant to sections 841, 843 and 844. For purposes of this subsection, "industrial facility" means a manufacturing facility that has or is anticipated by the bureau to have a total just value exceeding $10,000,000 in any municipality for all real and personal property located in that municipality.

Sec. 6. 36 MRSA §706,  as amended by PL 2013, c. 544, §5 and affected by §7, is further amended to read:

§ 706. Taxpayers to list property; notice; verification

Before making an assessment, the assessor or assessors, the chief assessor of a primary assessing area or the State Tax Assessor in the case of the unorganized territory may give seasonable notice in writing to all persons liable to taxation or qualifying for exemption pursuant to subchapter 4-C in the municipality, primary assessing area or the unorganized territory to furnish to the assessor or assessors, chief assessor or State Tax Assessor true and perfect lists of all their estates of which they were possessed on the first day of April of the same year.

The notice to owners may be by mail directed to the last known address of the taxpayer or by any other method that provides reasonable notice to the taxpayer.

If notice is given by mail and the taxpayer does not furnish the list, the taxpayer is barred of the right to make application to the assessor or assessors, chief assessor or State Tax Assessor or any appeal from an application for any abatement of those taxes, unless the taxpayer furnishes the list with the application and satisfies the assessing authority or authority to whom an appeal is made that the taxpayer was unable to furnish the list at the time appointed.

The assessor or assessors, chief assessor or State Tax Assessor may require the person furnishing the list to make oath to its truth, which oath any of them may administer.

The assessor or assessors, chief assessor or State Tax Assessor may require the taxpayer to answer in writing all proper inquiries a total of no more than 30 interrogatories or document requests or a combination of interrogatories and document requests not exceeding 30 in the aggregate seeking information as to the nature, situation and value of the taxpayer's property liable to be taxed in the State or subject to exemption pursuant to subchapter 4-C. Each distinct subpart in an interrogatory or document request is considered a separate interrogatory for the purpose of the 30-request limit. A taxpayer may make reasonable objections to responding to interrogatories or document requests to the same extent as objections may be made under the Maine Rules of Civil Procedure. As may be reasonably necessary to ascertain the value of property according to the income approach to value pursuant to the requirements of section 208-A or generally accepted assessing practices, these inquiries interrogatories and document requests may seek information about income and expenses, manufacturing or operational efficiencies, manufactured or generated sales price trends or other related information. A taxpayer has 30 days from receipt of such an inquiry interrogatories and document requests to respond. Upon written request, a taxpayer is entitled to a 30-day extension to respond to the inquiry interrogatories and document requests and the assessor may at any time grant additional extensions upon written request. Information provided by the taxpayer in response to an inquiry interrogatory or document request that is proprietary information, and clearly labeled by the taxpayer as proprietary and confidential information, is confidential and is exempt from the provisions of Title 1, chapter 13. An assessor of the taxing jurisdiction may not , without the taxpayer's written consent, allow the inspection of or otherwise release such proprietary information to anyone other than the State Tax Assessor, who shall treat such proprietary information as subject to section 191, subsection 1, except that the exemption provided in section 191, subsection 2, paragraph I does not apply to such proprietary information. As used in this subsection, "proprietary information" means information that is a trade secret or production, commercial or financial information the disclosure of which would impair the competitive position of the person submitting the information and would make available information not otherwise publicly available and information protected from disclosure by federal or state law or regulations. A person who knowingly violates the confidentiality provisions of this paragraph commits a Class E crime.

A taxpayer's refusal or neglect to answer inquiries bars an appeal, but the answers are not conclusive upon the assessor or assessors, chief assessor or State Tax Assessor.

If the assessor or assessors, chief assessor or State Tax Assessor fail to give notice by mail, the taxpayer is not barred of the right to make application for abatement; however, upon demand the taxpayer shall answer in writing all proper inquiries as to the nature, situation and value of the taxpayer's property liable to be taxed in the State. A taxpayer's refusal or neglect to answer the inquiries and subscribe the same bars an appeal, but the list and answers are not conclusive upon the assessor or assessors, chief assessor or the State Tax Assessor.

Sec. 7. 36 MRSA §708,  as amended by PL 1973, c. 620, §17, is further amended to read:

§ 708. Assessors to value real estate and personal property

The Except as provided in section 305, the assessors and the chief assessor of a primary assessing area shall ascertain as nearly as may be the nature, amount and value as of the first day of each April of the real estate and personal property subject to be taxed, and shall estimate and record separately the land value, exclusive of buildings, of each parcel of real estate.

Sec. 8. 36 MRSA §843, sub-§1,  as amended by PL 1995, c. 262, §4, is further amended to read:

1. Municipalities.   If Except as otherwise provided in subsection 1-A, if a municipality has adopted a board of assessment review and the assessors or the municipal officers refuse to make the abatement asked for, the applicant may apply in writing to the board of assessment review within 60 days after notice of the decision from which the appeal is being taken or after the application is deemed to have been denied, and, if the board thinks the applicant is over-assessed, the applicant is granted such reasonable abatement as the board thinks proper. Except with regard to nonresidential property or properties with an equalized municipal valuation of $1,000,000 or greater either separately or in the aggregate, either Either party may appeal from the decision of the board of assessment review directly to the Superior Court, in accordance with Rule 80B of the Maine Rules of Civil Procedure. If the board of assessment review fails to give written notice of its decision within 60 days of the date the application is filed, unless the applicant agrees in writing to further delay, the application is deemed denied and the applicant may appeal to Superior Court as if there had been a written denial.

Sec. 9. 36 MRSA §843, sub-§1-A,  as amended by PL 1995, c. 262, §4, is repealed and the following enacted in its place:

1-A Nonresidential property of $1,000,000 or greater.   The following provisions apply to real property or properties that are used primarily for commercial, industrial or business purposes, excluding unimproved land that is not associated with a commercial, industrial or business use, with an equalized municipal valuation of $1,000,000 or greater either separately or in the aggregate, referred to in this subsection as "nonresidential property."
A The taxpayer may waive consideration of a decision involving nonresidential property by a local board of assessment review by:

(1) Appealing the decision of the assessor or municipal officers directly to the State Board of Property Tax Review within 60 days after notice of the decision from which the appeal is taken or after the abatement application is deemed denied; or

(2) Appealing the decision of the assessor or municipal officers directly to the Superior Court within 60 days after notice of the decision from which the appeal is taken or after the abatement application is deemed denied, in accordance with Rule 80B of the Maine Rules of Civil Procedure.

The State Board of Property Tax Review or Superior Court, as the case may be, shall conduct a de novo hearing and make a de novo determination of the merits of the case. If the board or Superior Court determines that the applicant is over-assessed, it shall grant such reasonable abatement as the board or Superior Court thinks proper.

B If the owner of nonresidential property elects to appeal the decision of the assessors or municipal officers to a local board of assessment review, either party may appeal the decision of the local board of assessment review or the primary assessing area board of assessment review to:

(1) The State Board of Property Tax Review within 60 days after notice of the decision from which the appeal is taken or after the application is deemed denied, as provided in subsections 1 and 2; or

(2) The Superior Court within 60 days after notice of the decision from which the appeal is taken or after the abatement application is deemed denied, in accordance with Rule 80B of the Maine Rules of Civil Procedure.

The State Board of Property Tax Review or Superior Court, as the case may be, shall conduct a de novo hearing and make a de novo determination of the merits of the case. If the board or Superior Court determines that the applicant is over-assessed, it shall grant such reasonable abatement as the board or Superior Court thinks proper.

Sec. 10. 36 MRSA §843, sub-§2,  as amended by PL 2001, c. 396, §17, is further amended to read:

2. Primary assessing areas.   If Except as provided in subsection 1-A, if a primary assessing area has adopted a board of assessment review and the assessors or municipal officers refuse to make the abatement asked for, the applicant may apply in writing to the board of assessment review within 60 days after notice of the decision from which the appeal is being taken or after the application is deemed to have been denied, and if the board thinks the applicant is over-assessed, the applicant is granted such reasonable abatement as the board thinks proper. Except with regard to nonresidential property or properties with an equalized municipal valuation of $1,000,000 or greater, either separately or in the aggregate, either Either party may appeal the decision of the board of assessment review directly to the Superior Court, in accordance with the Maine Rules of Civil Procedure, Rule 80B. If the board of assessment review fails to give written notice of its decision within 60 days of the date the application was filed, unless the applicant agrees in writing to further delay, the application is deemed denied and the applicant may appeal to the Superior Court as if there had been a written denial.

Sec. 11. 36 MRSA §844, sub-§2,  as amended by PL 2011, c. 548, §13, is repealed and the following enacted in its place:

2 Nonresidential property of $1,000,000 or greater.   Notwithstanding subsection 1, the applicant may appeal the decision of the assessors or the municipal officers on a request for abatement with respect to nonresidential property or properties having an equalized municipal valuation of $1,000,000 or greater, either separately or in the aggregate, to:
A The State Board of Property Tax Review within 60 days after notice of the decision from which the appeal is taken or after the application is deemed denied; or
B The Superior Court within 60 days after notice of the decision from which the appeal is taken or after the abatement application is deemed denied, in accordance with Rule 80B of the Maine Rules of Civil Procedure. The State Board of Property Tax Review or Superior Court, as the case may be, shall conduct a de novo hearing and make a de novo determination of the merits of the case. If the board or Superior Court determines that the applicant is over-assessed, it shall grant such reasonable abatement as the board or Superior Court thinks proper.

For the purposes of this subsection, "nonresidential property" means property that is used primarily for commercial, industrial or business purposes, excluding unimproved land that is not associated with a commercial, industrial or business use.

summary

This bill amends Maine's property tax laws by:

1. Requiring centralized assessment by the Department of Administrative and Financial Services, Maine Revenue Services of complex manufacturing facilities valued at more than $10,000,000;

2. Allowing appeals of decisions of an assessor or municipal officers involving nonresidential property with a value of more than $1,000,000 directly to the Superior Court and decisions of the State Board of Property Tax Review directly to the Law Court;

3. Limiting to 30 the number of interrogatories or document requests that an assessor may require a taxpayer with property liable to taxation or seeking an exemption under the business equipment tax exemption program to answer in writing; and

4. Changing the membership specifications of the State Board of Property Tax Review to remove the requirement that a member be an engineer and instead requires members who are representatives of business and industry who are experienced in taxation, finance or valuation matters.


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