Heeding the need to maintain fishermen’s access to the water, both houses of the Maine Legislature voted this session to pass a resolution to tax their property at current use.
Because the resolution is to change the constitution to assess at current use “waterfront land used for or that supports commercial fishing activities,” both houses had to pass the resolution by a two-thirds majority. The vote was unanimous in the House and Senate.
Next, the resolution will appear on the November general election ballot. It must be passed by a majority to become effective and change the state constitution.
Several categories of land in Maine already are protected by a “current use” designation: “(1) farms and agricultural lands, timberland and woodlands; (2) open space lands which are used for recreation or the enjoyment of natural beauty; and (3) lands used for game management or wildlife sanctuaries.”
Concerned that fishermen are losing access to the water because of the steep increase in value of coastal real estate, former Rep. David Etnier (D-Harpswell) presented a similar resolution several years ago. A statewide referendum to implement it did not succeed.
Rep. Leila Percy (D-Phippsburg) resurrected the idea and brought it to the attention of Sen. Dennis Damon (D-Trenton) last December. Damon, then Chair of the Special Select Joint Committee on Tax Reform, agreed that tax relief to support fishing communities should be part of the tax package.
Rep. Percy emphasized that “it is crucial that the fishing community start talking to inland family and friends to explain what this resolution means – last time we lost the vote because inland support was lacking.”
In communities all along the coast, fishermen have been forced to sell their waterfront property as taxes have risen due to the increased value of shorefront property.
The legal standard for tax assessment is to value land at its highest and best use. When over time a town’s property values go up, the assessed value on property will be lower than market value. State law requires a town to reassess property when the difference between assessed value and market value reaches a certain percentage.
Lands with current use status for taxation are penalized if changed to a higher use. According to law, the minimum penalty is “equal to the tax which would have been imposed over the 5 years preceding that change of use had that real estate been assessed at its highest and best use, less all taxes” paid the previous five years.