Maine’s Tree Growth Tax Law Worth a Consideration by Lakefront Property Owners

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April 7, 2013

Maine’s Tree Growth Tax Law Worth a Consideration by Lakefront Property Owners

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Inviting Waters of Messalonskee Lake in the Belgrade Lakes Region of Maine

In 1972, the Maine Legislature passed the Tree Growth Tax Law with the intention of providing an incentive for landowners to maintain their forestland, while supporting timber production to supply forest products.

Lakefront property owners should take a look at this law and see if it is appropriate for them to apply.



According to the law, which has seen 86 changes over the last four decades,  landowners with a minimum of ten acres of forestland may see up to a 95% reduction on their property taxes. In order to qualify, property owners must develop a Woodland Management Plan that includes well-planned harvests.
To enroll, landowners must develop a ten-year management plan that is certified by a licensed forester, seek approval from the town assessor and meet other criteria. The forester creates an inventory of the types of wood available and helps the landowner develop steps to improve the land for commercial harvest. Every ten years the plan must be re-certified by a forester.
As I stated earlier, the law has undergone numerous changes over the years. Most recently, some standards were tightened to maintain the tax exemption.
According to the Maine Tax Blog, in 2012, the law again came under legislative scrutiny. LD1138 was An Act to Amend the Maine Growth Tax Law and Open Space Tax Law, Chapter 118. To this end, “beginning August 1, 2012, when asked to provide evidence of compliance with a forest management and harvest plan, a landowner will be required to attest that the property is being used to grow trees to be harvested for commercial use or for other allowable purposes.  The Act creates a multi-step process for notifying a landowner of failure to comply with the Law, and imposes new penalties for such failure. Property eligible for Tree Growth classification under the Law will now be reduced if it has a structure on it or if it is in a shoreland area.”
Also, according to LD1470,  An Act to Evaluate the Harvesting of Timber on Land Taxed Under the Maine Growth Tax Law, Chapter 119, “the Director of the Bureau of Forest will conduct periodic random samplings of enrolled land to ensure compliance with the management plan.”
This is a long-term decision. The land is intended to remain in tree growth forever, even if it is sold. The landowner receives a tax credit for the portion of the property in tree growth (you may decide to manage a minimum of ten acres of your property for tree growth and manage the rest of your land for other purposes), and has the ability to generate income from the sale of thinned pulp and cordwood. It’s important to note that there are stiff penalties, which may result in much more than the taxes saved, if the land is removed from the program.
Applications are available from the town’s tax assessor and the Maine Forest Service.
To view lakefront properties for sale on Messalonskee Lake click on the green box above.
To learn more about the Belgrade Lakes Region of Maine, check out the blog links below.
Sparkling Messalonskee Lake in Maine’s Belgrade Lakes Chain
The Belgrade Lakes Region of Maine

Sources: Maine Forest Service and Maine Tax Blog

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