On April 16, 2014, Attorney Dana Hanley presented a two-hour symposium on incorporating small businesses in Maine through the “Quick Start Class” sponsored by Community Concepts Finance Corporation. The meeting was held at the conference center of Community Concepts located in Market Square, South Paris, Maine. Continue reading
The firm’s senior attorney Dana C. Hanley, in his capacity as Judge of Probate for Oxford County as well as Chair of the Maine Supreme Court’s Advisory Committee on Probate Rules, presented two separate sessions on “E-filing in the Probate Courts” at the two-day Elder Law Estate Planning Institute held on September 28th and 29th. While e-filing is not yet possible in the other state courts in Maine, the Probate Courts have already initiated a pilot program in Oxford, Cumberland, Penobscot and York counties which has been ongoing since May 1, 2012. The remaining twelve counties will be able to start the pilot program on May 1, 2013, at which time the original four counties will have mandatory e-filing for attorneys and it will remain optional for pro-se petitioners.
Owners of Maine forest land should be aware of recent changes to the Maine Tree Growth Tax Law and Open Space Tax Law recently enacted by the 125th Maine Legislature.
LD 1138 (Public Law, Chapter 618) – An Act to Amend the Maine Tree Growth Tax Law and Open Space Tax Law
Beginning August 1, 2012, landowners in the Maine Tree Growth Tax Law program will have to attest at the time of enrollment and at each update of the forest management and harvest plan that the primary use of the enrolled property is commercial timber harvesting or other permissible purposes.For parcels of land that contain structures with minimum lot size requirements, the owner must exclude from the Tree Growth schedule at least 1/2 acre containing the structure. In a shoreland area, the excluded parcel must include 100 feet of shoreland frontage or the minimum shoreland frontage required by applicable law.
The law creates a multiple-step process for notification and imposing penalties when a landowner fails to comply with the requirement to update the forest management and harvest plan every 10 years. It allows the assessor to impose a $500 fine if the landowner misses the initial deadline and subsequent $500 penalty if the landowner has not met the requirement within 6 months. If the landowner has not complied with the requirement to update the plan or transferred the land to open space classification within an additional 6 months, the land will be withdrawn from the Maine Tree Growth Tax Law program and a penalty assessed.
One option created by the new law is a new category under the alternative valuation method in the Farm and Open Space Tax Law providing for an additional reduction of 10% for a landowner who provides and complies with a forest management and harvest plan. A landowner who fails to comply with the plan required under the Farm and Open Space Tax Law, however, loses the additional percentage reduction for 10 years. Also, if the landowner switches from Tree Growth to Open Space classification and then removes the property from current use tax programs entirely, the tree growth withdrawal penalty rather than the open space withdrawal penalty applies for the first 10 years after transfer.
Click here for the full text of the enacted legislation.
|Synopsis by Kirk G. Siegel, Esq. This communication is not intended as a substitute for legal or tax advice, and should not be relied on as such. Competent legal or tax counsel should be retained for any particular situation, as each is fact-specific.|