Forest Incentive Programs - Property Taxes for Maine

Type of Tax

Current Use Value Tax based on the productivity of timber growth

Law

Tree Growth Tax Law, Maine Revenue Station Annual 36-572. Sec 571-584-A, PL 1994, c. 576 (amended)

Objective

To provide an adequate incentive to manage the land on a sustained yield basis and discourage development

Requirements

Minimum of 10 acres

Forest management and harvest plan prepared by a licensed forester are required. There is a $100 penalty if no plan is provided within 1 year of application.

Must update management plan once every 10 years. Landowners may receive a $200 income tax credit once every 10 years for the cost of the management plan.

If the use changes or the owner withdrawals from the program, the penalty is 30% of the difference between the fair market value of the land and the valuation under the Tree Growth Tax Law. If the owner does not report the change in land use the penalty is increased 25%.

Program Administration

State Department of Revenue handles appeals to state tax assessor on 100% valuations. The State Department of Forestry provides information on the program. The county tax assessor handles applications and determines values. Private licensed foresters prepare management plan.