Code of Maine Rules
18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES
125 - BUREAU OF REVENUE SERVICES
Chapter 201 - RULES OF PROCEDURE USED TO DEVELOP STATE VALUATION
Section 125-201-4 - Computation of State Valuation

Universal Citation: 18 ME Code Rules ยง 125-201-4

Current through 2024-38, September 18, 2024

Specific adjustments to Municipal Assessed Value to determine State Valuation are described in this section. Not all of the adjustments described below pertain to all Municipalities, and the State Tax Assessor may make adjustments to classes of property not listed below to determine State Valuation.

A. Transmission and Distribution Property. The State Valuation for Transmission and Distribution Property is based on the declared value submitted to the Municipality by the electrical utility, unless the State Tax Assessor determines the electrical utility has significantly undervalued, overvalued, or omitted property.

B. Current Use Programs

1. Tree Growth. The Equalized Value of land that is properly classified as forest land under the provisions of the Maine Tree Growth Tax Law is 100% of the applicable per-acre values determined by the State Tax Assessor in accordance with 36 M.R.S. §§576 - 577.

2. Farmland. The Equalized Value of land that is properly classified as farmland is based on the per-acre rates prescribed by 36 M.R.S. §§1105 and 1119.
(a) Except for farm woodland, the Equalized Value of farmland is the applicable full value per-acre farmland rate established by the Assessor.

(b) The Equalized Value of farm woodland is 100% of the applicable per-acre values determined by the State Tax Assessor in accordance with 36 M.R.S. §§ 576 - 577.

3. Open Space. The Equalized Value of land that is properly classified as open space, as defined under 36 M.R.S. §1102(6), is based on the greater of:
(a) The value of open space land using one of the valuation methods under 36 M.R.S. §1106-A; or

(b) The state rate for Undeveloped Land as described in subsection E below.

C. Commercial, Industrial, and Personal Property. The Equalized Value of Commercial Property, Industrial Property, and Personal Property is calculated by dividing the Municipal Assessed Value by the:

1. Certified Ratio, provided that ratio is not greater than 110% of the Average Ratio, or

2. Average of the Certified Ratio and the Average Ratio, if the Certified Ratio is greater than 110% of the Average Ratio.

D. Residential Property

1. Non-segregated. In cases where Residential Property in a Municipality is not segregated into subclasses, the Equalized Value of Residential Property is calculated by dividing the Municipal Assessed Value of the Residential Property by the Average Ratio.

2. Segregated. In cases where Residential Property in a Municipality is segregated into two or more subclasses (e.g., Nonwaterfront Property, Waterfront Property, or Condominium), the State Valuation for each subclass is calculated by dividing the Municipal Assessed Value for that subclass of Residential Property by its corresponding Average Ratio as determined by the Segregated Ratio Study.

3. Waterfront Property. When a review of a Municipality's assessment records reveals either an underassessment or a failure to assess Waterfront Property, the Bureau may estimate the Equalized Value of such property based on local or regional sales data.

E. Undeveloped Land, Wasteland, Cropland, and Blueberry Land. The Equalized Value for Undeveloped Land is calculated by multiplying the number of acres in that category by the average per-acre sale price of Undeveloped Land as determined for each county or area through annual studies conducted by the Bureau. These studies will involve sales data for the three most recent years. The Equalized Value for Wasteland is calculated by multiplying the number of acres in that category by the per-acre Equalized Value of Undeveloped Land, then multiplying the resulting product by 12.5%. The Equalized Value for cropland and blueberry land not enrolled in the farmland program is determined through analysis of recent sales in the region of property in those categories. Cropland and blueberry land are defined in the Bureau's Property Tax Bulletin No. 20 - Farmland Tax Law.

F. Estimate of State Valuation. In instances where the State Tax Assessor determines there has been concealment or nondisclosure of taxable property, or failure of the Assessor to assess taxable property, the Bureau may include a reasonable estimate of the Equalized Value of such property in the State Valuation report.

G. Adjustments. The net adjustments in Equalized Value due to valid property tax abatements (excluding hardship/poverty abatements) and supplemental assessments (excluding Current Use program penalties) for the tax year under review are calculated by dividing the Municipal Assessed Value associated with the adjustments by the applicable Average Ratio or the Certified Ratio, if the Average Ratio does not accurately reflect the relationship to Just Value.

H. Base Lots. When the State Tax Assessor determines that a Municipality has not reasonably attributed the value of a Base Lot in the assessment of land, the Bureau may use local or regional sales data to estimate the value of a Base Lot for that Municipality and include in the State Valuation for that Municipality an estimate of the amount by which that Municipality's assessments understate the Equalized Value of land.

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