A new law passed by the Maine Legislature earlier this year gives added clarity to the state’s Working Waterfront Current Land Use tax reduction program.
Maine typically assesses property tax based on the most valuable, or best use, of a property. To support Maine’s natural resource industries, Maine has four primary Current Land Use Programs that offer property owners tax reductions in assessed value based on the specific use of their land. These programs are designed to support the preservation of certain types of land, and each has specific eligibility requirements and potential penalties if the land use changes. The four programs are farmland, open space, tree growth, and working waterfront. While this is a state tax relief program, enrollment in these programs is managed at the municipal level.
The Current Land Use Program for working waterfront supports properties that are used for commercial fishing activities, which is now defined in Maine law to include both commercial fishing and aquaculture production.
Why did the program need to be updated?
While working waterfront has been part of the Current Land Use Program since 2007, enrollment has been very low. In 2019, a report titled The State of Maine’s Working Waterfront, produced by the Maine Coast Fishermen’s Association (MCFA), found that there was a need to distinguish between the types of working waterfront necessary for commercial fishing, as well as the fact that the Current Land Use Program for working waterfronts was the least utilized tax reduction program and could benefit from an update. Low enrollment is likely due to the minimal tax reductions the program as written provided, and real concerns about the penalties incurred if property was no longer used as working waterfront, whether temporarily or long-term.
In 2024, MCFA worked with state Representative Dan Ankeles to amend the current use taxation policy to be more in line with other programs. An Act Regarding the Current Use Valuation of Working Waterfront Property was passed in the last legislative session, which outlined several amendments to the program that will improve tax relief and other support for working waterfront property owners.
What do property owners need to know?
The regulations were effective on August 9, 2024. If you’re already enrolled in this program, the changes will automatically apply for calendar year 2025. If you aren’t enrolled, you will need to apply at your town municipal office before April 1, 2025, to see an impact on your 2025 taxes.
Updated definition of Working Waterfront
In prior versions, the definition of “working waterfront land” was vague and could be interpreted any number of ways. The new law is more precise about this definition, which helps landowners, municipalities, and potential buyers ensure they are acting in support of commercial fishing activities. In particular, the new law acknowledges that gear maintenance and storage are critical aspects of commercial fishing activity.
Increased tax reduction to rates in line with other Current Land Use Programs, and a new provision regarding right-of-ways and easements for commercial intertidal harvesters.
Land used predominantly as working waterfront (90% or more for commercial fishing activity) is now eligible for a reduction of 30%.
Land used primarily as working waterfront (50%-89% for commercial fishing activity) is now eligible for a reduction of 20%.
Working waterfront land that is subject to a legally binding right-of-way or easement that permits access to intertidal land for commercial fishing activities is eligible for the same reductions, and an additional reduction of 10%.
Amended penalties
Previously, penalties were imposed if a fisherman did not use the property for fishing for a year. Given the high injury risk in the fishery, this was a significant burden. The regulations have now been amended to extend this period to two years. The regulations also include the ability to request a delay in payment of other penalties (due to change of use) of up to two years.
Updated reporting requirements
Under the revised regulations, the State Tax Assessor must submit a biennial report to the Legislature’s Taxation Committee and make an information bulletin on current use laws publicly accessible. This enhanced reporting provides a solid inventory of protected properties by municipality. This would help communities understand their working waterfront resources, especially public access points.
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