“Dark Stores” bill passes House

Maine State Chamber opposes bill

The Maine House of Representatives voted 77 to 55 “ought-to-pass as amended” on LD 1129, An Act Relating to the Valuation of Improved Real Property,  sponsored by Rep. Ann Matlack (D-St. George). The Maine State Chamber testified in opposition to LD 1129 at the public hearing.

The Maine House of Representatives voted 77 to 55 “ought-to-pass as amended” on LD 1129, An Act Relating to the Valuation of Improved Real Property,  sponsored by Rep. Ann Matlack (D-St. George). The Maine State Chamber testified in opposition to LD 1129 at the public hearing.
 
As drafted, the bill would prohibit an assessor from being able to consider issues like deed restrictions, easements, and encumbrances (potentially including zoning restrictions) when valuing similar property with no such restrictions. The amendment to LD 1129 will impact all improved property in Maine, including residential. This bill attempts to solve what is essentially a litigation issue at the municipal level through legislation and would trample a taxpayer’s ability to challenge certain assessments.
 
This bill automatically favors municipalities at the expense of the property taxpayer’s rights. The valuation of real property is a complex issue that is intricately woven with Maine’s Constitutional mandate that all taxes be apportioned evenly according to just value. This legislation deviates substantially from judicial precedent. The amendment to LD 1129 attempts, unsuccessfully, to codify judicial precedent from a recent Law Court case.
 
Municipal assessors should not be receiving special treatment with respect to how certain properties are valued. Other marketplace participants will not be able to disregard deed restrictions or property encumbrances in valuing the sale or purchase price of property. Ultimately, this could impact an individual’s negotiating power. Assessments are best left to the assessor for determining values of property both improved and unimproved.
 
The bill is expected to be on the Senate calendar next week for their consideration. The Maine State Chamber urges its members to contact their legislators and ask them to vote no on LD 1129. We have prepared talking points for you here.
 
If you have any questions, please contact Linda Caprara, senior government relations specialist, by calling (207) 623-4568, ext. 106, or by emailing [email protected].