Skip Maine state header navigation
BOARD OF PROPERTY TAX REVIEW
DIGEST OF
Table of Contents
LIST OF CASES
I. Assessment/Collection and Valuation Cases. .
. . . . . . . . . . . . . . . . .2
II.
Exemptions From Taxation Cases. . . . . . . . . . . . . . . . . . . . .
. . . . . 13
Revenue Producing Municipal Facilities (30 M.R.S. § 4262)
Abandoned Railroads (36 M.R.S. § 561)
Public Property (36 M.R.S. § 651)
Institutions and Organizations (36 M.R.S. § 652)
Personal Property (36 M.R.S. § 655)
Real Estate (36 M.R.S. § 656)
III. Classified Property Cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Tree Growth Tax Law (36 M.R.S. §§ 571-584-A)
Farmland and Open Space (36 M.R.S. §§ 1101-1121)
Working Waterfront (36 M.R.S. §§ 1131-1140-B)
Mine Site (36 M.R.S. § 2865)
IMPORTANT POINTS FROM THE DECISIONS
I. General Principles. . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . 20
II. Procedural Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45
III. Assessment/Collection of Taxes . . . . . . . . . . . . . . . . . . . . . . . . . 70
IV. Valuation of Property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .102
V. Exemptions From Taxation. . . . . . . . . . .
. . . . . . . . . . . . . . . . . 132
VI. Classified Properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
Tree Growth Tax Law
Farmland and Open Space
Working Waterfront
Mine Site
VIII. Poverty Abatements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
LIST OF CASES
I. Assessment/Collection and Valuation Cases
Morrell v. Sylvester, 1
Porter v. Whitney, 1
Bussey v. Gilmore, 3
Colby v. Russell, 3
Mussey v. White, 3
Foxcroft v. Nevens, 4
Paine v. Ross, 5
Ford v. Clough, 8
Mosher v. Robie, 11
Inhabitants of School Dist. No. 1, in Greene v. Bailey, 12
Hooper v. Emery, 14
Gould v. Inhabitants of New
Johnson v. Goodridge, 15
Trafton v. Inhabitants of Alfred, 15
Deane v. Washburn, 17
Keene v. Houghton, 19
Kellar v. Savage, 20
City of
Varney v. Stevens, 22
Holton v. City of
Brown v. Veazie, 25
Millett v. Inhabitants of
Shimmin v. Inman, 26
Smith v. Inhabitants of Readfield, 27
Briggs v. Inhabitants of
Payson v. Hall, 30
Stickney v. City of
Smyth v. Titcomb, 31
Andrews v. Senter, 32
Blanchard v. Dow, 32
Williamson v. Dow, 32
Campbell v. Inhabitants of Machias, 33
Hemingway v. Inhabitants of Machias, 33
Inhabitants of School Dist. in Tremont v. Clark, 33
Coombs v. Warren, 34
Williams v. Hilton, 35
Augusta Bank v. City of
Inhabitants of Winslow v.
(1854), overruled
in part, Perry v. Inhabitants of the Town of
Powers v. Inhabitants
of
Phillips v. Phillips, 40
Caldwell v. Hawkins, 40
Trim v. Inhabitants of
Inhabitants of
Patterson v. Creighton, 42
Herriman v. Stowers, 43
Inhabitants of Orono v. Wedgewood, 44
Adams v. Larrabee, 46 Me. 516 (1859), overruled, Millett v. Mullen, 95
400, 420, 49 A. 871, 875 (1901)
Inhabitants of Hartland v. Church, 47
Inhabitaants of Porter v. Stanley, 47
Judkins v. Reed, 48
Lovejoy v. Lunt, 48
Hathaway v. Inhabitants of Addison, 48
Allen v. Archer, 49
Brackett v. Vining, 49
Desmond v. Inhabitants of
Church v. Rowell, 49
Bowker v. Lowell, 49
Inhabitants of Readfield v. Shaver, 50
Inhabitants of Trescott v. Moan, 50
Packard v. Tisdale, 50
Littlefield v. Inhabitants of Brooks, 50
Look v. Inhabitants of Industry, 51
Inhabitants of
Lowe v. Weld, 52
Inhabitants of Scarborough v. Parker, 53
Lambard v.
Inhabitants of
Ellsworth v. Brown, 53
Inhabitants of
Egery v. Woodard, 56
Inhabitants of Orono
v. Veazie, 57
Inhabitants of Gorham
v. Hall, 57
Gilpatrick v. Inhabitants of Saco, 57
Gould v.
City of
Larrabee v. Hodgkins, 58
Greene v. Lunt, 58
French v. Patterson, 61
Stockwell v.
Inhabitants of Brewer, 59
Carter v. Allen, 59
Gilman v. Inhabitants
of
Nowell v. Tripp, 61
Inhabitants of Orono v. Veazie, 61
Portland, Saco & Portsmouth R.R. Co. v. City of
Seekins v. Goodale, 61
Parsons v. City of
Phillips v.
Inhabitants of Orneville v. Pearson, 61
Hayford v. City of
Carville v. Additon, 62
Greene v.
Nason v. Ricker, 63
Pearson v. Canney, 64
Farnsworth Co. v.
Rand, 65
Inhabitants of Freedom v.
(1876)
Inhabitants of
Inhabitants of
Waite v. Inhabitants of Princeton, 66
Inhabitants of
Inhabitants of Levant
v.
(1877)
Porterfield v. City of
Inhabitants of Bucksport v. Woodman, 68
Inhabitants of Boothbay v. Giles, 68
Tolman v.
Inhabitants of Boothbay v. Race, 68
Treat v. Smith, 68
Inhabitants of Elliot v. Spinney, 69
Dyar v. Farmington Village Corp., 70
Inhabitants of Harpswell v. Orr, 69
Hall v. Inhabitants of
Whitmore v. Learned, 70
Inhabitants of Norridgewock v. Walker, 71
Briggs v. Johnson, 71
Snow v. Inhabitants of
Inhabitants of
Wiggin v.
Inhabitants of
Snow v. Winchell, 74
Inhabitants of
Cressey v. Parks, 75
Moulton v. Egery, 75
Inhabitants of Orland v.
(Inhabitants of Orland I)
Inhabitants of Orland v.
(Inhabitants of Orland II)
Cressey v. Parks, 76
Inhabitants of
Inhabitants of Machiasport v. Small, 77
Inhabitants of
Snow v. Weeks, 77
Inhabitants of
2 A. 847 (1886), overruled in part, Stevens v. Dixfield &
Mexico
Bridge
Co., 115
City of
City of
Inhabitants of Orneville v. Palmer, 79
Libby v. Mayberry, 80
Martin v. City of
Thorndike v. Inhabitants of
Inhabitants of Topsham
v. Blondell, 82
Gower v. Inhabitants of
City of
(Mary Farnsworth)
Lord v. Parker, 83
Ladd v. Dickey, 84
City of
Bowler v. Brown, 84
Bragdon v. Inhabitants of Freedom, 84
City of
Jordan v.
Whiting v. City of
United Copper Mining & Smelting Co. v. Franks, 85
(1893)
Inhabitants of Embden v. Bunker, 86
Inhabitants of
Inhabitants of Orono v. Emery, 86
Skowhegan Savings Bank v. Parsons, 86
Howe v. Moulton, 87
City of
Wheeler v.
Miller v.
Inhabitants of
Maddocks v. Stevens, 86
Mason v. Belfast Hotel Co, 89
(Belfast Hotel Co. I)
Mason v. Belfast Hotel Co, 89
(Belfast Hotel Co. II)
Farnsworth v. City of
(Lucy Farnsworth I)
Inhabitants of
Union Water Power Co. v. City of
(Union Water Power Co. I)
City of
(Union Water Power Co. II)
Bennett v.
Rowe v. Friend, 90
Inhabitants of
Creamer v. Inhabitants
of
City of
Emery v. Inhabitants
of Sanford, 92
Green v. Alden, 92
City of
(Lucy Farnsworth II)
Inhabitants of Farmingdale v. Berlin Mills Co., 93
Inhabitants of Topsham
v. Purinton, 94
Burgess v. Robinson, 95
Morrill v. Lovett, 95
Millett v. Mullen, 95
Jacques v. Parks, 96
Mayo v. Dover &
Foxcroft Village Fire Co., 96
Stafford v. Morse, 97
Milliken v. Houghton, 97
Opinion of the Justices (In re state Taxation), 97 Me. 595, 55 A. 827 (1903)
Smith v. Randlette, 98
Inhabitants of Eliot
v. Prime, 98
Sweetsir v.
Inhabitants of
Saco Water Power Co.
v. Inhabitants of Buxton, 98
(1903)
Inhabitants of New
Limerick v. Watson, 98
Inhabitants of
Penobscot Chemical Fibre Co. v. Inhabitants of the Town of
99
Edwards Mfg. Co. v.
Farrington, 102
Baker v. Webber, 102
Inhabitants of
103
Inhabitants of Bradley
v. Penobscot Chemical Fibre Co., 104
71 A. 887 (1908)(Penobscot Chemical Fibre Co. II)
Inhabitants of
Inhabitants of
Roberts v. Moulton, 106
John P. Squire &
Co. v. City of
McCann v. Inhabitants
of Town of
Eden v. Pineo, 108
Bresnahan v. Sherwin
Inhabitants of
Powell v. City of
Inhabitants of
Sawyer v. Glimore, 109
Inhabitants of Boothbay v. E. I. DuPont deNemours Powder Co., 109 Me
236, 83 A.
663 (1912)
Fenlason v. Shedd, 109 Me.326, 84 A. 409 (1912)
Inhabitants of
84 A. 995 (1912)
Inhabitants of
Bayville Village Corp. v. Inhabitants of
110
City of
Kelley v. Jones, 110
City of
(Lucy Farnsworth III)
Paul v. Huse, 112
Clark v. Gray, 113
Morton v.
Stevens v. Dixfield
& Mexico Bridge Co., 115
Talbot v. Inhabitants
of Wesley, 116
Arnold v. City of
Foulkes v. Nevers, 119
Hamilton v.
Murray v. Ryder, 120
Hunt v. Latham, 121
Keyes v. State, 121
Crabtree v. Ayer, 122
Machias Lumber Co. v.
Inhabitants of Machias, 122
(1923)
Stowell v. Blanchard, 122
Campbell v.
Hall v.
Shawmut Mfg. Co. v. Town of
Inhabitants of Brownville v. U. S. Pegwood & Shank Co., 123
123 A. 170 (1924)
See Opinion of the Justices, 123
Desjardins v. Jordan Lumber Co., 124
Spear v. City of
Cumberland County
Power & Light Co. v. Inhabitants of the Town of
Inhabitants of the
Town of
145 A. 241 (1929)
Central Maine Power
Co. v. Inhabitants of the Town of
148 A. 799 (1930)
Portland Terminal Co.
v. City of
Gilmartin v. Emery, 131
McKay Radio &
Telegraph Co. v. Inhabitants of the Town of
131
Inhabitants of
Bucksport v. Swazey, 132
City of
Inhabitants of the
Town of
132
Inhabitants of Town of
Alfred J. Sweet, Inc.
v. City of
Pejepscot Paper Co. v.
State, 134
City of
In re Estate of
Paradis, 134
Cassidy v. Aroostook
Hotels, Inc., 134
Kelley v. Brunswick
School Dist., 134
City of
Tozier v. Woodworth, 135
Inhabitants of Town of
3 A.2d 429 (1939)
Van Woudenburg v.
Valentine, 136
Lowden v. Graham, 136
Tozier v. Woodworth
& Land, 136
Snell v. Libby, 137
Inhabitants of the
Town of
(1941)
Vigue v. Chapman, 138
S. D. Warren Co. v.
Fritz, 138
part,
Assessors, Town of
Scavone v. Davis, 142
Oceanic Hotel Co. v.
Angell, 143
Kramer v. Inhabitants
of the Town of
(1949)
Sears, Roebuck &
Co. v. City of
Opinion of the
Justices, 144
Perry v. Inhabitants of the Town of
(1950)(Perry I)
McDougal v. Hunt, 146
Baxter v. Waterville
Sewerage Dist., 146
Dolloff v. Gardiner, 148
Perry v. Inhabitants of the Town of
(1953)(Perry II)
Dead River Co. v. Assessors of Houlton, 149
Carlisle v.
Gray v. Hutchins, 150
Sears, Roebuck &
Co. v. City of
(1954)
Gaston v. Townsend, 150
N. J. Gendron Lumber
Co. v. Inhabitants of the Town of
450, 120 A.2d 560 (1956)
Dudley v. Varney, 152
Blake v. Assessors of
Town of
(1957), overruled, Assessors, Town of
Opinion of the
Justices, 155
Emple Knitting Mills
v. City of
Maine Lumber Co., Inc. v. Inhabitants of Town of
347, 172 A.2d 638 (1961)
Public Service Co. of New Hampshire v. Assesors
of Berwick, 158
183 A.2d 205 (1962)
McCarty v.
(1962)
Young v. Johnson, 161
Buckley v.
Northeastern Paving Corp., 161
Kittery Electric Light
Co. v. Assessors of the Town of
(
Kittery Electric Light
Co. v. Assessors of the Town of
(
Ouellette v. Daigle, 219
A.2d 545 (
219 A.2d 748 (
Bangor
Inhabitants of Town of
274 A.2d 439 (
Arsenault v. Inhabitants of the Town of
Eastport Water Co. v.
City of
Hann v. Merrill, 305
A.2d 545 (
Martel v. Bearce, 311
A.2d 540 (
City of
810 (1974)
Frank v. Assessors and
Inhabitants of the Town of
167 (
Opinion of the
Justices, 339 A.2d 492 (
Capitol Bank &
Trust Co. v. City of
Sevigny v. City of
Morrissette v.
Connors, 350 A.2d 332 (
Town of
Edgerly v. Honeywell
Information Systems, Inc., 377 A.2d 104 (
Harrington v.
Inhabitants of Town of
Fickett v. Hohlfeld, 390
A.2d 469 (
Assessors, Town of
Tax Assessors of the
Town of
(
Inhabitants of the
Town of
Isle,
403 A.2d 1181 (
Farrelly v.
Inhabitants of the Town of
State v. Richard L.
Hodges, Inc., 420 A.2d 247 (
Shawmut Inn v.
Inhabitants of the Town of
(
Cummings v. Town of Oakland, 430 A.2d 825 (
454
Rice v. Amerling, 433
A.2d 388 (
Freeport Minerals Co.
v. Inhabitants of the Town of
642 (
City of
Delta Chemicals, Inc.
v. Inhabitants of the Town of
483 (
P. H. Chadbourne & Co. v. Town of
(forest land)
Blaney v. Inhabitants
of Town of
Seaborne v. Look, 464
A.2d 221 (
Magno v. Town of
Harwood v. Town of
Town of
Johnson v. Town of
Eastler v. State Tax
Assessor, 499 A.2d 921 (
Drebelbis v. Town of
Great
(
(
Moser v. Town of
Brackett v. Larrivee, 562
A.2d 138 (
Aucella v. Town of
Eastabrook v. Town of
Nadeau v. Town of
Aucella v. Town of
Town of
Jordan
Town of
Aucella v. Town of
Flower v. Town of
Central Maine Power
Co. v. Town of
(BPTR)
City of
(BPTR)
Glenridge Development
Co. v. City of
(BPTR)
Muirgen Properties,
Inc. v. Town of
IBM Credit Corp. v.
City of
Wesson v. Town of
Champion Intl. Corp.
v. Town of
City of
Weekley v. Town of
Bangor Publishing Co.
v. Town of
McCullough v. Town of
Finance Authority of
Town of
McNaughton v. Kelsey, 1997 ME 182, 698 A.2d 1049
Interstate Food
Processing Corp. v. Town of
698 A.2d 1074
Quoddy Realty Corp. v.
City of
Mobile Imaging Consortium v. City of
(BPTR)
S. D. Warren Co. v.
Town of
Nugent v. Town of
Ellen M. Leach Memorial Home v. City of
149 (BPTR)
Rackliffe v. Northport Village Corp., 1998 ME 114, 711 A.2d 1282
Delogu v. City of
Goldstein v. Town of
Town of
City of
Fitzgerald v. City of
Town of
Capodilupo v. Town of
Pepperman v. Town of
See Stewart v. Town of
Town of
Trust,
2000 ME 213, 763 A.2d 115
Forbes v. Town of
Yusem v. Town of
Ocwen Federal Bank, FSB v. Gile, 2001 ME 120, 777 A.2d 275
Northeast Empire Ltd.
Partnership #2 v. Town of
818 A.2d 1021 (BPTR)
International Woolen
Co. v. Town of
(BPTR)
Ram’s Head Partners, LLC v. Town of Cape Elizabeth, 2003 ME 131,
834 A.2d 916
Delogu v. City of
Opinion of the Justices, 2004 ME 54, 850 A.2d 1145
Roberts v. Town of
Town of
State v. Falcone &
Jannetti, 2006 ME 90, 902 A.2d 141, cert.
denied,
549
UAH-Hydro Kennebec, LP
v. Town of
(BPTR)
Stevenson v. Town of
Kennebunk, 2007 ME 55, 930 A.2d 1046, motion
for
reconsideration denied, 2007 ME 135, 930 A.2d 1051
Peaker v. City of
Peaker v. City of
Town of
Town of
Revenue Producing
Municipal Facilities (30 M.R.S. § 4262)
Town of
Abandoned
Railroads (36 M.R.S. § 561)
Maine Central R.R. Co. v. Town of
Public
Property (36 M.R.S. § 651)
Brewer Brick Co. v.
Inhabitants of Brewer, 62
State v. Maine Central
R.R. Co., 66
City of
Inhabitants of
(1885)
City of
(also section 656)
City of
Laughlin v. City of
City of
Inhabitants of Whiting
v. Inhabitants of Lubec, 121
(1922)
Inhabitants of
Greaves v. Houlton
Water Co., 140
(Greaves I)
City of
Greaves v. Houlton
Water Co., 143
(Greaves II)
Inhabitants of
Boothbay v. Inhabitants of
88 A.2d 820 (1952)
Inhabitants of Owl’s
Head v. Dodge, 151
Marshall v.
Inhabitants of Town of
687 (1959)
Opinion of the
Justices, 231 A.2d 431 (
Howard D. Johnson Co.
v. King, 351 A.2d 524 (
Exxon Corp. v.
Town of
Town of
Passamaquoddy Water Dist. v. City of
Town of
(BPTR)
Portland Water Dist.
v. Town of
Institutions
and Organizations (36 M.R.S. § 652)
Inhabitants of Baldwin
v. Trustees of Ministerial Fund, 37
(also section 655)
City of
73
Inhabitants of
Foxcroft v. Straw, 86
Inhabitants of Foxcroft v.
29 A. 951 (1893)
City of
State v. Hamlin, 86
Curtis v.
99
Inhabitants of Orono v. Sigma Alpha Epsilon Society, 105
(1909)
Inhabitants of Orono
v. Kappa Sigma Society, 108
(1911)
Inhabitants of Gorham
v. Trustees of Ministerial Fund, 109
82 A. 290 (1912)
142 A. 65
(1928)(
(1933)
7 A.2d 428 (1939)(Ferry Beach Park II)
City of
Osteopathic
(1942)
MacDonald v. Stubbs, 142
O’Connor v. Wassookeag
School, Inc., 142
Green Acre Baha’i
Institute v. Town of
(1954)(Green
Green Acre Baha’i
Institute v. Town of
(1963)(Green
161
See Johnson v.
State Y.M.C.A. v. Town
of
(1977)
Nature Conservancy,
Pine Tree State, Inc. v. Town of
(1978)
Pentecostal Assembly
of
Silverman v. Town of
Alpha
(
Christian Schools,
Inc. v. Town of
Maine AFL
523 A.2d 581 (
Advanced Medical
Research Foundation v. Town of
1040 (
Camps
Newfound/Owatonna, Inc. v. Town of
(
American Martial Arts
Foundation v. City of
(
Town of
(
Camps
Newfound/Owatonna, Inc. v. Town of
(
(1997)
Episcopal Camp
Foundation, Inc. v. Town of
(
City of
(
Camps
Newfound/Owatonna, Inc. v. Town of
705 A.2d 1109
(Camps Newfound/
The Salvation Army v.
Town of
City of
(BPTR)
Christian Fellowship & Renewal Center v. Town of
16, 769 A.2d 834 (
Cushing Nature &
Preservation Center v. Town of
149, 785 A.2d 342 (also farm and open space case)
Credit Counseling
Centers, Inc. v. City of
A.2d 458
Christian Fellowship & Renewal Center v. Town of
44, 896 A.2d 287 (Christian Fellowship & Renewal Center II)
Humboldt Field Research Institute v. Town of
___ A.3d ___
Estates of Veterans (36 M.R.S. § 653)
Inhabitants of
Inhabitants of
Inhabitants of the Town of
(1931)
Stockman v. City of
Dillon v. Johnson, 322 A.2d 332 (
Lambert v. Wentworth, 423 A.2d 527 (
Personal
Property (36 M.R.S. § 655)
(not including cases considered by the Board of
Environmental Protection pursuant to section 655(1)(N))
Gardiner Cotton & Woolen Factory Co. v.
Inhabitants of Gardiner, 5
133 (1827)
Inhabitants of Baldwin
v. Trustees of Ministerial Fund, 37
(also section 652)
Farnsworth Co. v.
Inhabitants of
Donnell v. Inhabitants
of Webster, 63
See Opinion of the
Justices, 102
Inhabitants of Leeds
v.
141 A. 73 (1928)
Inhabitants of Town of
(1930)(Milo Water Co. I)
Inhabitants of Town of
(1932)(Milo Water Co. II)
Milo Water Co. v. Inhabitants of Town of
(Milo Water Co. III)
Inhabitants of Town of
Opinion of the
Justices, 141
See Bridges Bros.,
Inc. v. Board of Assessors of the City of
223 A.2d 71 (
Depositors Trust Co.
v. City of
Inhabitants of Town of
Farmington v. Hardy’s Trailer Sales, Inc.,
410 A.2d 221 (
Roberta, Inc. v.
Inhabitants of Town of
(
Jordan
Eagle Rental, Inc. v.
City of
Handyman Equipment
Rental Co., Inc. v. City of
724 A.2d 605
Real Estate (36 M.R.S. § 656)
(not including cases considered by the Board of
Environmental Protection pursuant to section 656(1)(E))
Portland, Saco & Portsmouth R.R. Co. v. City of
Plaisted v. Inhabitants of Lincoln, 62
City of
(also section 651)
Town of
Inhabitants of
1040 (1907)
Portland Terminal Co.
v. City of
In re Maine Central
R.R. Co., 134
Portland Terminal Co.
v. Hinds, 134
Portland Terminal Co.
v. Hinds, 141
Connecticut Bank & Trust Co. v. City of
III. Classified
Property Cases
See Knox Lime Co. v.
(condemnation case,, and not a mine site case, but discusses valuing mineral resources)
See Opinion of the Justices, 335 A.2d 904 (
Augusta Water Dist. v. Town of
(open space)
Dubois v. City of Saco, 645 A.2d 1125 (
McBreairty v. Comm’r of Administrative & Financial Services, 663 A.2d 50
(
Chase v. Town of Machiasport, 1998 ME 260, 721 A.2d 636 (tree growth)
Cushing Nature &
Preservation Center v. Town of
785 A.2d 342 (farmland and open space; also section 652)
Town of
Bureau of Taxation v.
Town of
Bureau of Taxation v.
Town of
(not including ancient pauper cases)
Macaro v. Town of
Joyce v. Town of
Dodge v. Town of
Gilmore v. City of
Mason v. Town of
Sager v. Town of
Hustus v. Town of
IMPORTANT POINTS FROM THE
DECISIONS
I. General Principles
Act of Separation by which
Trustees of Ministerial Fund, 109
92
Delogu II, 2004 ME 18, ¶ 17 n.4, 843 A.2d at 37 n.4
Taxation is an inherent attribute of sovereignty essential to the existence of government and exercised for the public good
Littlefield, 50
paid for the protection which government gives to person and to property”)
Portland, Saco & Portsmouth R.R. Co., 60
Maine Central R.R. Co., 66
Camden Village Corp., 77
Inhabitants of Whiting, 121
Waldo Lumber Co., 128
Milo Water Co. II, 131
MacDonald, 142
Dolloff, 148
Mandarelli, 320 A.2d at 27 (“Taxation is
the life
process to government itself . . . Taxation is recognized as a sovereign right. As such it is an attribute of sovereignty. It is essential to the very existence of government”)
Alpha
Paul I, 84
constitutional provision is to equalize public burdens and not to assume those of individuals”)
Sawyer, 109
Opinion of the Justices, 339 A.2d at 508-10 (excess
apportionment law to reimburse school districts for school construction is unconstitutional because effectively higher in some districts than others)
Eastler, 499 A.2d at 927 (
M.R.S. §§ 2711
Delogu I, 1998 ME 246, ¶ 17, 720 A.2d at 1156 (“all property
taxes assessed must be assessed on an equal basis”)
Delogu II, 2004 ME 18, ¶ 12, 843 A.2d at 36 (“Article IX,
Section 8 mandates equality” and “prohibits munici-palities from engaging in unjust discrimination in the assessment of real estate taxes or the apportionment of real estate tax burdens”)
Opinion of the Justices, 2004 ME 54, ¶ 9, 850 A.2d at 1148-
49 (initiated bill that would tax property on “full cash value” would violate Art. IX, § 8 by not taxing property at just value); ¶¶ 16-19, 850 A.2d at 1150-51 (initiated bill that would tax property differently according to date or purchase, depending on date of purchase—on either “full cash value” or “appraised value”—would violate Art. IX,
§ 8)
UAH-Hydro
(Constitution requires uniformity in mode of assessment
and rate of taxation to ensure that all property owners
share property tax burden equitably)
Historical changes to Art. IX, § 8
Hamlin, 86
Delogu II, 2004 ME 18, ¶ 16 & n.3, 843 A.2d at 37 & n.3
Art. IX, § 8 does not require that all property be taxed, but that whatever is taxed shall be assessed equally
Brewer Brick Co., 62
Portland Water Co., 67
Opinion of the Justices, 102
Opinion of the Justices, 141
Opinion of the Justices, 155
unlike property taxes, in cases of intangible personal property, Legislature may provide one mode of assessment as to one class and another mode as to another class)
Passamaquoddy Water Dist., 1998 ME 94, ¶ 11, 710 A.2d at
900
Northport Village Corp., 1998 ME 114, ¶ 8, 711 A.2d at 1284
Art. IX, § 8 establishes two requirements for a valid property tax: a valuation requirement and an apportionment requirement
Hamlin, 86
for an equal apportionment and assessment according to value”)
Eastler, 499 A.2d at 924 (valuation requirement is to deter-
mine just or market value; apportionment requirement
is to asses equally according to just value)
Chase, 1998 ME 260, ¶ 11, 721 A.2d at 640 (Art. IX, § 8
incorporates two concepts for assessing property: (1) fair market value and (2) equity—that is, relative uniformity with comparable properties)
Yusem, 2001 ME 61, ¶ 9 n.6, 769 A.2d at
870 n.6 (quoting
Chase)
Opinion of the Justices, 2004 ME 54, ¶ 14, 850 A.2d at 1150
(quoting Eastler); ¶ 15, 850 A.2d at 1150 (“property taxes must be based on market value and must be apportioned equally according to that value”)
To assess property according to its just value is a fundamental requirement of law
Pejepscot Paper Co., 134
incumbent on the assessors not to tax on an assessment above a just and fair value”)
Kittery Electric Light Co. I, 219 A.2d at 734
Shawmut Inn, 428 A.2d at 389
Assessment is to represent the owner’s equal portion or just proportion of the public burden of taxation
Patterson, 42
Gower, 83
Paul I, 84
Eastler, 499 A.2d at 924
J & N Sanford Trust, 1997 ME 97, ¶ 13, 694 A.2d at 459
Adams, 1999 ME 49, ¶ 14, 727 A.2d at 349
The only permissible variation in the amount of tax is that resulting from the difference in value
Opinion of the Justices (In re State Taxation), 97
55 A. at 827
Passamaquoddy Water Dist., 1998 ME 94, ¶ 11, 710 A.2d at
901
To single out certain property and impose a tax upon it unequally in comparison to other property is unconstitutional
Opinion of the Justices, 123
Art. IX, § 7: The Maine Constitution requires decennial assessments, proportioned to entire estates with a taxed district to meet continuing and regularly recurring expenses
Hamlin, 86
Art. IX, §§ 7 and 8 are to be construed together; they do not require an absolute equality (given that the Legislature may exempt certain properties)
Hamlin, 86
Property taxes, authorized by the Legislature and assessed locally, are among the oldest sources of revenue to maintain local governments
A state property tax that the Legislature has directed municipalities to collect cannot lawfully be held by the municipalities even if the law were to be declared unconstitutional
McGary, 356 A.2d at 707-08
Statutory implementation of constitutional provision
Kittery Electric Light Co. I, 219 A.2d at 733 (section 708)
Shawmut Inn, 428 A.2d at 389
Taxation is legislative
Brewer Brick Co., 62
mine the amount of taxation and select the object”)
Paul I, 84
levied by the legislature. . . .”)
Prime, 98
assessed only by authority of the statute”)
Livermore Falls Trust & Banking Co., 103
69
A. at 308
imposed without express statutory authority”)
In re Maine Central R.R. Co., 134
Hinds II, 141
Greaves II, 143
Green Acre Baha’i II, 159
Depositors Trust Co., 295 A.2d at 30
Delogu II, 2004 ME 18, ¶ 25, 27, 843 A.2d at 39, 40
The Legislature is never presumed to have relinquished its power of taxation
Portland, Saco & Portsmouth R.R. Co., 60
The Legislature cannot suspend its powers of taxation, Art. IX., § 9, or bind itself never to repeal or change a tax law in the future
Paul I, 84
Waldo Lumber Co., 128
Greaves II, 143
Dolloff, 148
Opinion of the Justices, 155
Delogu II, 2004 ME 18, ¶ 28, 843 A.2d at 40
The Legislature has the same power to repeal a tax as to impose it
North, 57
The state can tax every person subject to its jurisdiction for all of his property wherever situated
Kimball, 91
The state can tax persons outside its jurisdiction for all their property within its jurisdiction
Kimball, 91
The taxing power of the state stops at the state’s boundary line
Kimball, 91
Pejepscot Paper Co., 134
Essential elements of taxation are (1) jurisdiction over the property; (2) property subject to taxation; (3) duly elected and qualified assessors; (4) property belonging to the party; and (5) a written order of selectmen that suit be brought in the name of the municipality
Emery, 86
Ulmer II, 87
Lawry, 89
Butterfield, 98
Whittier, 122
Vigue, 138
Hinds II, 141
Hardy’s Trailer Sales, 410 A.2d at 224 (re all 5)
Taxation involves two solely legislative steps: (1) determining the nature of the tax to be imposed; and (2) determining its effective imposition to insure collection and availability to the state for the purposes for which it is raised
Mandarelli, 320 A.2d at 27
Taxes may be imposed only for public purposes
Hooper, 14
Allen, 60
Brewer Brick Co., 62
Laughlin, 111
Eastler, 499 A.2d at 923, 927 n.9
Northport Village Corp., 1998 ME 114 ¶ 8, 711 A.2d at 1284
Delogu I, 1998 ME 246, ¶ 10, 720 A.2d at 1155
Public purpose is not dependent on voter approval, public ownership of the facilities at issue, or the economic need of the recipient of the aid
Delogu I, 1998 ME 246, ¶ 13, 720 A.2d at 1155
Courts give great deference to legislative findings of public purpose
Delogu I, 1998 ME 246, ¶ 11, 720 A.2d at 1155
What the Legislature calls a tax is entitled to deference, but the characterization is not controlling
Eastler, 499 A.2d at 925
Courts have a more limited role than the Legislature in providing means for citizens to obtain relief from abusive state action
All taxes—state, county, and local—are levied and collected by public officers acting for and under the authority of the state
Thorndike, 82
Ulmer I, 84
Milo Water Co. II, 131
Waldo Lumber Co., 128
In re Maine Central R.R. Co., 134
Dolloff, 148
Under Art. IX, § 9, the Legislature cannot surrender, or wholly delegate to a municipality, the right of taxation (or the right to exempt property from taxation), such that when municipalities tax they do so for the state
Brewer Brick Co., 62
Maine Central R.R. Co., 66
legislatively created corporation, except by the most clear and explicit language)
Waldo Lumber Co., 128
Dolloff, 148
Delogu II, 2004 ME 18, ¶ 26, 843 A.2d at
39
843 A.2d at 41
A municipality has no sovereignty, but is merely an agency of the state, with only those powers granted by the state
Waldo Lumber Co., 128
Dolloff, 148
Municipalities act as agents of the state in the assessment and collection of taxes
Hooper, 14
Thorndike, 82
Ulmer I, 84
Lewis and Maxcey, 109
Waldo Lumber Co., 128
Dolloff, 148
Magno, 486 A.2d at 142
A municipality has no power of taxation absent state legislative authority
Paine, 5
Hooper, 14
Thorndike, 82
Waldo Lumber Co., 128
In re Maine Central R.R. Co., 134
Municipalities are treated very differently in regard to taxation, and do not have the same power as does the Legislature
Delogu II, 2004 ME 18, ¶ 15, 843 A.2d at 37 (they “are
prohibited from taking unilateral actions to adopt exemptions, abatement or repayment schemes that result in unequal apportionment of property tax burdens with their boundaries”); id. ¶ 20, 843 A.2d at 38 (“legislative authorization is a prerequisite for a municipal property tax rebate or repayment program targeting selected properties”)
Powers of municipal corporations
Dover & Foxcroft Village Fire Co., 96
65
Laughlin, 111
Brunswick School Dist., 134
Greaves I, 140
A municipality’s authority to tax is delimited by its boundaries, which are fixed by the Legislature, and cannot be acquired or altered by prescription
Eden, 108
A municipality can tax real estate within its boundaries, whether of residents or nonresidents, but not real estate outside the municipality
Briggs, 29
Church, 47
Judkins, 48
Hathaway, 48
Hall, 69
Blake, 74
Proprietors of
Rockland Water Co., 82
Norway
Water Co., 85
is to be taxed where it is located)
Maine Water Co., 90
Municipalities cannot treat nonresidents and residents differently for taxation purposes, absent legitimate reasons to do so
Aucella III, 628 A.2d at 124
Whether the Legislature may create special districts, or unorganized territories, and provide for taxation of them, and do so differently from other areas so long as there is a special benefit to the taxed district or territory, reasonably proportionate to the tax burden, and taxes are uniformly assessed within the district or territory
Inhabitants of School Dist. No. 1, in
Greene, 12
(passim)(school district is a quasi
Farmington Village Corp., 70
protection corporation)
Dover & Foxcroft Village Fire Co., 96
66
Opinion of the Justices (In re State Taxation), 97
55 A. at 827
Augusta Water Dist., 101
Lewis and Maxcey, 109
(Maine Forestry District)
Crabtree, 122
Brunswick School Dist., 134
(irrelevant that taxing district and town it served had identical territory and inhabitants, so long as they had different taxation purposes)
Opinion of the Justices, 144
(same)
Waterville Sewerage Dist., 146
(same)
Inhabitants of the Town of
(passim)
Eastler, 499 A.2d at 922, 927 (Maine Forestry District taxation
scheme unconstitutional)
McBreairty, 663 A.2d at 54
Northport Village Corp., 1998 ME 114, ¶, 711 A.2d at 1284
(village tax provided improvements for village residents; benefits to nonresidents were only incidental)
Delogu
II, 2004 ME 18, ¶ 17, 843 A.2d at 37
may deviate, on a state
Tax Relief Program violates Art. IX, §§ 8, 9)
A municipality cannot assess taxpayers of a school district to pay for erection of school in excess of that authorized for its construction
A tax cannot be levied on only a portion of real estate of a municipality created as a part of the whole, or on only one piece of real estate but not another similarly situated
Brewer Brick Co., 62
Farmington Village Corp., 70
Dover & Foxcroft Village Fire Co., 96
The Legislature may authorize a municipal corporation to buy, via taxation, an existing waterworks system even though the corporation will be compelled to carry out the obligations of the original water company for some outside the limits of the purchasing municipality
Dover &
Foxcroft Village Fire Co., 96
Where a municipality is granted power to create a municipal debt, it has the right to levy taxes to pay the debt in the absence of any other means
Huse, 112
Municipalities rely on property taxes for revenue
Opinion of the Justices, 2004 ME 54, ¶ 4, 850 A.2d at 1148
The property tax is a tax on the ownership of property (while an excise tax is levied only on use of property, with funds often dedicated to a particular industry)
Eastler, 499 A.2d at 924 & nn. 6, 7, 927
To determine whether a tax is a property tax or an excise tax, look to the method of establishing the tax rate (which is significant but not conclusive) and to what was being taxed (the subject matter of the taxation), which is the central issue
Eastler, 499 A.2d at 924
A property tax may be so unreasonable or oppressive as to be confiscatory
Opinion of the Justices, 123
Double taxation on the same property is against public policy, and is to be avoided
Augusta Bank, 36
Portland, Saco & Portsmouth R.R. Co., 60
Wheeler, 88
corporation to corporation itself and tax on shares of
corporation to shareholders)
Livermore Falls Trust & Banking Co., 103
(passim)(same)
Stevens, 115
Cf. Depositors Trust Co., 295 A.2d at 30 (no double taxation
may be imposed unless applicable statutes clearly require it)
It is not incumbent upon assessors to tax when it is not practicable
Pejepscot Paper Co., 134
example, when determination of existence of property would entail expense incommensurate with the profit of the tax to the state)
Property taxes are usually fixed by dividing the total sum to be raised by the total valuation of the property, the ratio yielding the tax rate
Eastler, 499 A.2d at 925
The Legislature is not required to distribute tax revenues or benefits equally; some private interests may benefit more than others, and the Constitution does not require commensurate contribution so long as there is a rational basis for the difference in treatment
Smyth, 31
Paul I, 84
Bayville Village Corp., 110
Crabtree, 122
taxation to be exactly proportionate to benefits would paralyze the taxing power)
Lambert, 423 A.2d at 531 (distinguishing between classes of
veterans and their eligibility for veterans’ exemption)
McBreairty, 663 A.2d at 54 (distinguishing between
apportionment and assessment of taxes and the distribution of tax revenues)
Delogu I, 1998 ME 246, ¶ 18, 720 A.2d at 1156 (tax increment
financing; distinguishing between assessment and spending of tax revenues)
Tax reimbursement programs
Delogu I, 1998 ME 246, ¶¶ 5, 6, 720 A.2d at 1154 (business
and equipment tax reimbursement
(BETR), 36 M.R.S. §§ 6651
Delogu II, 2004 ME 18, ¶¶ 5
Property Tax Relief Program); id. ¶ 13, 843 A.2d at 37 (under the program, property taxes are apportioned unequally)
Tax increment financing (TIF) districts, 30 M.R.S. § 5253
Delogu I, 1998 ME 246, ¶ 23, 720 A.2d at 1157
Explanation of tax increment financing
Delogu I, 1998 ME 246, ¶ 19, 720 A.2d at 1156
Constitutionality of tax increment financing
Delogu I, 1998 ME 246, ¶¶ 17
A tax is an assessment for a public purpose; assessments for local improvements are not taxes
Farmington Village Corp., 70
Assessments compared to taxes
Farmington Village Corp., 70
A tax is an impost levied by the authority of government, upon its citizens, for support of the state
North, 57
Waldo Lumber Co., 128
A tax is not a debt (an amount due upon an agreement), or a demand
North, 57
Maine Central R.R. Co., 66
Waldo Lumber Co., 128
A tax is not a contract
North, 57
Hall, 123
Waldo Lumber Co., 128
A municipality cannot accept a promissory note in lieu of payment of taxes: a note given for taxes does not discharge them; town treasurer cannot accept a note for payment of taxes, and assessors cannot ratify such acceptance and release one from liability to pay
Bunker, 86
Waldo Lumber Co., 128
Each municipality can determine for itself when taxes and interest on unpaid taxes are due, 36 M.R.S. § 505
Rockland Water Co., 82
Where a municipality did not vote to fix date when taxes should be payable, or that interest should be collected, no interest is due, 36 M.R.S. § 504
Snow, 77
Whittier, 122
Swazey,
132
McKay Radio & Telegraph II, 132
A void tax is no tax, and one is under no obligation to pay it
Hathaway, 48
Lord, 51
Woodman, 76
Bridge, 90
Morrill, 95
Talbot, 116
A tax on a dead person is void
Morrill, 95
Abatement proceedings are the appropriate means
through which to correct impermissible assessments
Shawmut Mfg. Co., 123
(discrimination)
Capodilupo,
1999 ME 96, ¶ 4, 730 A.2d at 1258
(overvaluation)
Adams, 1999 ME 49, ¶¶ 24-25, 727 A.2d at 351
(discrimination)
Ram’s Head Partners, 2003 ME 131, ¶ 15, 834 A.2d at
920-21
(discrimination)
Town of Bristol Taxpayer’s Ass’n, 2008 ME 159, ¶ 6 n.5,
957 A.2d at 979 n.5
(discrimination)
Abatement procedures cannot be used to remedy a void assessment or
where the taxing authority is challenged as invalid
Herriman, 43
Hathaway, 48
Talbot, 116
Edgerly, 392 A.2d at 106
S. D. Warren, 1998 ME 66, ¶ 8, 708 A.2d at 1021
One cannot recover a tax paid on ground it was illegal unless he paid it under protest or duress, which can exist only when a failure to pay produces irreparable injury: arrest or seizure of property
Smith, 27
Rogers, 58
when the challenge is to the constitutionality of a tax)
Exxon Corp., 322 A.2d at 536
McGary, 356 A.2d at 705, 707 (taxpayer has no right to a
refund of a state tax, voluntarily paid, even if the tax is later declared unconstitutional)
As a rule, all real estate is taxable (that is, unless subject to exemption)
Augusta Bank, 36
Portland, Saco & Portsmouth R.R. Co., 60
Camden Village Corp., 77
Sigma Alpha Epsilon Society, 105
Pejepscot Paper Co., 134
Alpha
When land is taxed to a person, the primary obligation is upon the land
Hall, 123
What constitutes real estate, 36 M.R.S. § 551: all lands and all buildings and things erected on or affixed to land; this is a very broad definition
Portland, Saco & Portsmouth R.R. Co., 60
and buildings affixed to land)
Hall, 69
Proprietors
of
(bridge)
Rockland Water Co., 82
conduits, etc.)
Norway Water Co., 85
Pejepscot Paper Co., 134
and all tenements and hereditaments connected thereto)
Stevens, 115
toll house, and land affixed thereto)
Dodge, 151
ings thereon)
Bangor
become telephone poles are personal property subject to sales tax, not real property, even after being set into ground)
PPL Maine, 2006 ME 88, ¶ 6, 901 A.2d at 818 (land, structures
affixed to land, and land with water power appertaining thereto)
What constitutes fixtures
Norway Water Co., 85
conduits, etc. of water company not exempt)
John P. Squire & Co., 106
(lengthy
discussion of fixtures; five
Inhabitants of Whiting, 121
(poles and transmission lines exempt)
Greaves I, 140
outside
jurisdiction of quasi
Commitment of taxes or warrant for collection, imposing liability, relates back to April 1st of the given year
Egery, 56
One’s residence on April 1st of one year is immaterial on the question of residence in another year
Lucy Farnsworth II, 93
Change of ownership after April 1st is irrelevant until next April 1st
Woodman, 68
Finance Authority of
What constitutes residency or domicile, subjecting one to taxation, as of April 1st of tax year
Judkins, 48
municipalities at once when he moves)
Rowell, 49
any place; everyone must have a domicile somewhere, but no more than one; residence depends on presence without present intent to depart)
Littlefield,
50
an inhabitant of some place and has an established residence, or dwelling, somewhere; where one is an inhabitant is where he has his domicile, which is a residence or dwelling at a particular place; this is a question of intent to remain)
Parsons, 61
intent to, and fact of, move; one who leaves city on March 30th, moves out of state, and does not return is not taxable in that city although he wife remained there)
Staples, 66
of town in which he was domiciled and intended to live after his return from sea, not town in which he had previously resided)
Porterfield, 67
tax in
city where he had never lived, and in which his wife has resided temporarily
while he was at sea; she could not change his domicile without intent on his
part to change it)
Walker, 71
another town upon learning that town intended to tax him was taxable in town to which he took goods and where he had taken up residence although he was not present there on April 1st)
Lucy Farnsworth I, 89
(attorney’s describing taxpayer as
“of
Gilmartin, 131
more than one residence, that is, places equipped as dwellings, but can have only one domicile, which is a combination of intent to remain and acts; taxpayer has burden to establish both, and failed to do so here)
Reid, 132
action to recover tax on real estate by showing he is not an inhabitant of taxing town)
Falcone and Jannetti, 2006 ME 90, ¶ 9, 902 A.2d at 143
(domicile has two components: residence and the
intent to remain; 36 M.R.S. § 5102(5) is not
unconstitutionally vague)
That one is an inhabitant of a municipality is a material fact to be pled and proved under statute requiring assessment of property of owners where they are inhabitants, and one who is not an inhabitant is not liable for payment of taxes
Mary Farnsworth, 83
Domicile may be difficult to determine, but assessors must decide
Nowell, 61
How to treat a residence sitting on the line of two towns
Judkins, 48
necessary and indispensable part is located)
Discussion of taxation where the locus of property, as between two adjacent towns, was confused
Blaney, 455 A.2d 1381 (passim)
What constitutes tax liability, 36 M.R.S. § 553: ownership or possession
Varney, 22
assessed taxes during his tenancy)
tenants unless, prior to last assessment, municipality
is notified of change in ownership or occupancy)
Coombs, 34
mortgagee, the latter is the owner, but the former is the owner as regards all others; mortgagee in possession may be taxed; but when ownership of premises is in the mortgager for taxation purposes, a tenant acquires no title by assessment and sale of them as property of the mortgagee)
Williams, 35
owner until possession is taken by the mortgagor, who then is responsible for paying taxes, 36 M.R.S. § 554)
Inhabitants of Baldwin, 37
sufficient for tax liability)
Desmond, 48
assessed taxes during his tenancy)
Wheeler, 88
taxed to the owner or person in possession”; munici-pality must deduct from a shareholder’s preferred stock in a company his proportional share of the value of the company’s real estate which is also taxed to the company)
Kelley, 110
properly assessed taxes during his tenancy)
Murray, 120
required to pay taxes on real estate)
Inhabitants of Whiting, 121
purposes of taxation a person in possession may be considered as the owner”)
Livermore Falls Trust Co., 136
(holder of quitclaim deed may be taxed without further examination by assessors of record title)
Snell, 137
to either owner or person in possession on April 1st, and assessors may continue to tax person to whom land was last assessed, although ownership or occupancy has changed, unless notified of change)
Hinds II, 141
a building is merely contractual it is taxable to the lessor as owner of the entire property; where the interest of the building owner attains the status of a separable and distinct estate the building is taxable to the building owner); id. at 78, 39 A.2d at 9 (owner of building on leased land is owner for tax purposes; lessee of building on leased land is owner for tax purposes during lease)
Dodge, 151
possession of real estate is liable for taxes thereon”; lessee liable for taxes if not otherwise exempt)
Seaborne, 464 A.2d at 222 (“real estate taxes may be assessed
either to the owner or to a nonowner who is in possession”)
Alpha
to title owner or to one having possession and control)
Mason, 1998 ME 201, ¶¶ 6, 8, 715 A.2d at 181 (mortgagors are
owners for property tax purposes, but not one buying the
property under an installment contract)
PPL
(owner of flowage rights holds an easement appurtenant, a non-possessory interest, in submerged land, and so
cannot be taxed as one in possession of such)
A tax can be imposed only on the owner as listed in the tax rolls, not an individual, even though the land to be taxed was described in deeds as being owned by the individual, where the individual had agreed to pay such taxes as the grantors knew they had to pay, and there was none
Tozier I, 135
A joint tenant or tenant in common may be considered the sole owner unless he or she has notified the assessor of one’s interests to the contrary, 36 M.R.S. §§ 555, 557
Blaney, 455 A.2d at 1386
See Brackett, 562 A.2d at 139-40
See Anderson, 1999 ME 70, ¶ 15, 728 A.2d at 1257
Assessment when the assessor has received notice of division of property by devise or names of devisees, 36 M.R.S. § 557
Swazey, 132
Where personal property is to be taxed; see 36 M.R.S. §§ 602, 603
Campbell, 33
taxable there only if owner “occupied” a mill or wharf in that town)
Desmond, 48
where wharf was located and taxpayer occupied wharf, although he lived elsewhere)
Look, 51
inhabitant on April 1st)
Brown, 53
sawmill were taxable in town where owner owns and occupies sawmill, as constructively present there)
Stockwell, 59
wharf, were taxable in city where partnership did business; they did not “occupy” wharf in other town where partners lived, and were not taxable there)
Portland, Saco & Portsmouth R.R. Co., 60
personal property is taxed to the owner where he is an inhabitant; property of a corporation is taxed where the corporation has its place of business)
Waite, 66
town where they were located)
Martin, 81
taxable in city where he maintained an office from which he conducted aspects of his business, but could not be said to have maintained a shop)
Gower, 83
trade taxable where mill was located, not where owner resided; cords of cut and split firewood, ready for sale, taxable where situated)
Creamer, 91
Kimball, 91
intangible property,
annunities, held out of state by trustees
for in
91
may be taxed)
Berlin Mills Co., 93
and Gower; finished logs ready for sale taxable where situated)
Watson, 98
employed in trade and taxable where stored if merely held there for sale elsewhere)
Penobscot Chemical Fibre Co. II, 104
888
Willis,
105
mill to be taxed where it is located)
McCann, 107
Hanscome, 108
did not actually occupy landing place on April 1st, it was taxable in town where landing place was located; follows Brown)
Estate of Charles Forster, 109
(property not employed in trade or in the mechanic arts, and so were not taxable where stored during one step among many in transit to ultimate destination; follows Creamer and Watson)
E. I. duPont deNemours Powder Co., 109
664 (manufacture of lumber into shipping boxes is a mechanic art to be employed where manufacturing was to take place, and taxable there, not where it was situated on April 1st; follows Berlin Mills, Penobscot Chemical Fibre Co. II, Hanscome, and McCann)
Morton, 115
in trade were not taxable in town where stored)
Machias Lumber Co., 122
awaiting arrival in town in which company had its main business were taxable in that town, not where they were located on April 1st and where they were not to be sold, following Watson, McCann, and Morton)
Desjardins, 124
personal property, unlike
permanent mills; all manufac
at 74
Sears, Roebuck & Co., 144
13
Dead River Co., 149
(pulpwood, not a manufactured product, taxable in city of residence of owner; railroad ties, finished and ready for use, are manufactured product taxable where situated)
N. J. Gendron Lumber Co., 151
(manufactured lumber, awaiting shipment for sale, is
taxable at mill site, though employed in trade in the place to which it was to be sent for retail sale)
Hardy’s Trailer Sales, 410 A.2d at 223
were finished products and are taxable where kept for sale)
Richard L. Hodges, Inc., 420 A.2d at 250 (state cannot tax
personal property permanently located outside state)
Jordan-Milton Machinery, Inc., 609 A.2d at 1167 (machinery
of nonresident business taxable where property is situated on April 1st, not where owner does business in state)
Tri
not office equipment is taxable where taxpayer resides, that is, has its principal place of business)
Mobile Imaging Consortium, 1998 ME 15, ¶ 5, 704 A.2d at
416
Assessment of property of estates, 36 M.R.S. §§ 559, 605
Spinney, 69
Bridge, 90
is liable for tax on personal property of decedent)
Prime, 98
Estate of Paradis, 134
devisees are responsible for taxes accruing upon real estate after death of decedent)
Kramer, 144
Gray, 150
II. Procedural Issues
Camps Newfound/
at 1111-12 (and fact that one may have to appeal does not defeat this conclusion)
Tax avoidance by law is not tax evasion
Cf. Boyd, 86
tax is one thing. A failure to pay is another.”)
Alpha
See Falcone & Jannetti, 2006 ME 90, ¶ 29 n.13, 902 A.2d at
151 n.13 (dissenting op.)
36 M.R.S. § 152 gives a property owner the option to pay under protest or not pay an assessed tax without forfeiting the right to apply for an abatement or seek review of the validity of tax
Town of
Maine Central R.R. Co., 588 A.2d at 291 n.3
BPTR or board of assessment review must decide case based only on
evidence in the record
Forbes, 2001 ME 9, ¶ 14, 763 A.2d at 1188 (BAR)
Board of assessment review can rely on evidence from another case, if it makes that evidence a part of the record in the case at issue
Forbes, 2001 ME 9, ¶¶ 15
Board of assessment review can ask parties to shorten their presentations when it has just reviewed similar cases
Harwood, 2000 ME 213, ¶ 12 n.5, 763 A.2d at 118 n.5
Improper for Board of Property Tax Review member to visit the property in litigation without notice to parties
Adams, 1999 ME 49, ¶¶ 7
In the absence of a record of findings, a court will assume assessors considered problems complained of (N. B.: point not to be followed after
Frank, 407 A.2d at 171
Shawmut Inn, 428 A.2d at 394
Lipski, 602 A.2d at 1172
Municipality must state sufficiently its reasons for denying taxpayer’s claim, and may not be conclusory
Dodge, 577 A.2d at 347 (poverty abatement)
769 A.2d at 838 (exemption)
Yusem, 2001 ME 61, ¶ 17, 769 A.2d at 872 (assessment)
(exemption)
Northeast Empire Ltd. Partnership #2, 2003 ME 28, ¶¶ 8, 17,
818 A.2d at 1024, 1026 (assessment; Board may not simply deem an expert’s opinion “not credible,” without more)
Ram’s Head
Partners, 2003 ME 131, ¶ 16, 834 A.2d at 921.
Peaker I, 2007 ME 105, ¶ 13 n.6, 927 A.2d at 1172 n.6
(quoting Ram’s Head Partners)
Assessors cannot reject a party’s evidence without support for doing so; unexplained mental conclusions are not sufficient; otherwise, one has used merely arbitrary guesswork and speculation
Kittery Electric Light Co. I, 219 A.2d at 738-39 (in context of
substantial overvaluation)
Arbitrary assessment will be struck down in discrimination cases
Farrelly, 407 A.2d at 307 (conscious resort to arbitrary
methods, treating like properties differently and
imposing unequal burdens on properties with the
same value, will invalidate assessment)
on “gut feeling”)
Ram’s Head Partners, 2003 ME 131, ¶ 13, 834 A.2d at 920
(noting admission by assessor in cited case that his method of assessment was arbitrary)
Claim that administrative agency relied on incompetent evidence must be accompanied by a showing of prejudice
Fact that there is conflicting evidence in the record, allowing for the drawing of different conclusions, does not mean there is a lack of substantial evidence for the conclusion reached by the local board
Forbes, 2001 ME 157, ¶ 6, 763 A.2d at 1186
Where the record of a hearing is incomplete or inadequate, a remand for a new hearing is required
Inhabitants of Levant, 67
¶ 17 n.6, 769 A.2d at 840 n.6
Ram’s Head Partners, 2003 ME 131, ¶ 18
921-22
Protective orders governing Board prevent the disclosure of confidential documents
Bangor Publishing Co., 682 A.2d at 230
Board of Property Tax Review has only adjudicatory functions and no enforcement authority
Town of
Board of assessment review has no enforcement authority
Freeport Minerals Co., 437 A.2d at 642 n.1
Motions to dismiss, because a taxpayer is arguably barred from the right to pursue relief, may inevitably lead to consideration of the merits of the case
Depositors Trust Co., 295 A.2d at 30
Howard D. Johnson Co., 351 A.2d at 526
Technical defenses are not favored in administrative proceedings
Kellar, 20
Moan, 50
and though the defects in the proceedings of the town are numerous, they are not of such a character as will authorize the defendants to take refuge behind them”)
Reed, 78
Whitmore, 79
Thorndike, 82
collection of taxes)
Ulmer I, 84
properties for single assessment; but see now 36 M.R.S. § 708)
Ulmer II, 87
liability)
Belfast Hotel Co. I, 89
joined in his declaration school district tax with state, county, and city taxes)
Lawry, 89
tax collector need not contain exact description of real estate; “If the collector made no objection, it is difficult to see on what ground the defendant can base his complaint”)
Blair, 104
Sherwin
possible harm could result to taxpayer over question whether there was a vacancy in the office of tax collector; “the tax is neither increased nor diminished”)
Lewis and Maxcey, 109
and qualification of assessors)
Lucy Farnsworth III, 111
naming person to be assessed)
Huse, 112
copying previous assessment of town rather than making an original and independent assessment)
Whittier, 122
supplemental list of taxes not covered by original
warrant, and signed in name of selectmen rather than assessors)
U. S. Pegwood & Shank Co., 123
(lack of uniformity of names of town officials; sufficiency of return of warrant for town meeting; sufficiency of oaths administered to assessors, tax collector, and town treasurer; qualification of tax collector, and name of party taxed)
Tozier I, 135
land or lake association when it was know as well by one name as the other)
Dodge, 151
supplemental assessment)
South Portland Associates, 550 A.2d at 364 (city’s reliance
on typographical error regarding tax years at issue
is “unworthy of modern, simplified administrative procedure”)
Lesser standards of due process apply to tax collections than to laws of general application
Flexibility is required in administrative proceedings
Kokernak, 612 A.2d at 874
Wesson, 667 A.2d at 599 n.6
Comments by board of assessment review are not evidence of wrong legal standard
McCullough, 687 A.2d at 630
But courts may examine them to shed light on incomplete or ambiguous findings
Ram’s Head Partners, 2003 ME 131, ¶ 14 n.1, 834 A.2d at
920 n.1
Administrative proceedings are (generally) not governed by the Maine Rules of Civil Procedure
Application of now-M.R. Civ.P. 6(a)
Cressey I, 75
on a Sunday, the act must be done by the next day)
Fenlason, 109
specifying when legal action can be taken begins on
day after precipitating event)
Administrative proceedings are (generally) not controlled by the Maine Rules of Evidence
Decision of the State Board of Assessment Review or BPTR is final agency action under APA, 5 M.R.S. § 11001
Rice, 433 A.2d at 389, 391 (State Board of Assessment
Review)
Glenridge Development Co., 662 A.2d at 931 n.6 (BPTR)
Decisions of municipal and state administrative agencies are accorded finality of judicial decisions
Maine Central R.R. Co., 588 A.2d at 292
Tax abatement appeals are judicial proceedings
Wheeler, 88
S. D. Warren Co., 138
To permit tax proceedings to be extended without just cause is against public interest, for municipalities depend upon prompt action by tax officials and prompt payment of taxes for their maintenance, and this is hampered by long, unjustified delays
Smyth, 31
S. D. Warren Co., 138
Effect of wrong characterization or designation of person to be assessed
Farnsworth Co. II, 65
from a corporation whose name is misstated in the assessment and tax list only through mistake of the assessors)
Spinney, 69
heirs when it has been given to devisees)
Woodman, 76
against an estate when there was an administratrix)
Reed, 78
trators of no consequence)
Thorndike, 82
collection of taxes)
Lucy Farnsworth III, 111
an administratrix an executrix of no consequence)
U. S. Pegwood & Shank Co., 123
(assessment against “United States Pegwood . . .” rather than “U. S. Pegwood . . .” of no consequence)
Tozier I, 135
“
Who may bring suit in the name of a municipality, see now 36 M.R.S. § 1032
Goodwin, 67
brought in name of inhabitants of town)
Boyd, 86
exercise discretion in each case, and cannot simply
give blanket authorization to tax collector)
Emery, 86
tax collector in writing to bring action of debt)
Small, 89
suit need not include time and place of direction)
Milo Water Co. I, 129
collector had no right to bring suit to recover taxes
for town without written directive from selectmen)
Cleary, 132
treasurer, not order of board of alderman and common council with mayor’s approval)
Jonah, 134
not city manager whose role is only administrative)
PPL Maine, 2006 ME 88, ¶ 6, 901 A.2d at 818 (municipality
may bring suit for collection of taxes)
Abatement appeals should not be captioned as against a municipal board of assessment review because such a board has no enforcement authority
(although this rule has not been followed religiously by the
Freeport Minerals Co., 437 A.2d at 642 n.1
Abatement proceedings against the tax collector and assessor are really suits against the municipality
Camps Newfound/
at 1114
Unnecessary to caption cases as “Inhabitants of the Town of . . . ,” etc.
(although this rule has not been followed religiously by the
Town of
Tax warrants need not be captioned “In the name of the State
of
Mussey, 3
Scope of judicial review
Wheeler, 88
review only the exercise of
judgment of
Penobscot Chemical Fibre Co. I, 99
(courts are not boards of equalization)
Alfred J. Sweet, 134
sit to review or correct mere errors)
Gaston, 150
Kittery Electric Light Co. I, 219 A.2d at 739 (same)
Judicial review of administrative decision is limited: complete re law, but only as to reasonableness of conclusions
Frank, 322 A.2d at 170
Judicial deference to administrative agency’s interpretation of statute or procedure
Roberta, 449 A.2d at 1140
Town of
Delogu I, 1998 ME 246, ¶ 21, 720 A.2d at 1157
Commissioners/boards of assessment review are to give no deference to tax assessors, but are to review independently the assessment
Dodge, 577 A.2d at 347
Kokernak, 612 A.2d at 873
Quoddy Realty Corp., 1998 ME 14, ¶¶ 4, 7, 704 A.2d at 408,
409
Chase, 1998 ME 260, ¶ 13, 721 A.2d at 640
Harwood, 2000 ME 213, ¶ 8, 763 A.2d at 118
Yusem, 2001 ME 61, ¶ 8, 769 A.2d at 870
Courts likewise review commissioners/boards of assessment and State
Board of Property Tax Review directly
Lipski, 602 A.2d at 1172
Camps Newfound/
Kokernak, 612 A.2d at 873
Central Maine Power Co., 649 A.2d at 322
Waterville Homes, 655 A.2d at 366
Glenridge Development Co., 662 A.2d at 931
Muirgen Properties, 663 A.2d at 58
Marcotte Congregate Housing, 673 A.2d at 211
Weekley, 676 A.2d at 933
Wesson, 677 A.2d at 598
Finance Authority of
Interstate Food Processing, 1997 ME 193, ¶ 3, 698 A.2d at 1075
Nugent, 1998 ME. 92, ¶ 7, 710 A.2d at 247
Salvation Army, 1998 ME 98, ¶ 5, 710 A.2d at 915
Madison Water Dist., 1998 ME 154, ¶ 4, 713 A.2d at 329
Chase, 1998 ME 260, ¶ 14, 721 A.2d at 640
Goldstein, 1998 ME 261, ¶ 5, 721 A.2d at 181
Pepperman, 1999 ME 157, ¶ 3, 739 A.2d at 852
Harwood, 2000 ME 213, ¶ 6, 763 A.2d at 117
769 A.2d at 836
Yusem, 2001 ME 61, ¶ 7, 769 A.2d at 869
461
Northeast Empire Ltd. Partnership #2, 2003 ME 28, ¶ 9,
818 A.2d at 1024 (substantial evidence review of Board’s findings are equated with clearly erroneous review of court findings)
UAH-Hydro
Town of
at 979
Humboldt Field Research Institute, 2011 ME 130, ¶ 3, ___ A.3d
at ___
All statutory requirements for perfecting an appeal are jurisdictional and require strict compliance
Rice, 433 A.2d at 391
Taxpayer must appeal in a timely manner to avoid finality of administra-tive decision
Maine Central R.R. Co., 588 A.2d at 292
Where appeal period of one case was tolled, but not that of other cases tried with it but not formally consolidated, appeals of them must be dismissed when usual appeal period ended before appeals were taken because timely filing of appeals are mandatory and jurisdictional
Kittery Electric Light Co. II, 219 A.2d at
746
Where the decision of local board of assessment review has not determined the amount of abatement, an appeal of that decision is interlocutory and must be dismissed, as the determination to be made is neither ministerial nor collateral
Peaker I, 2007 ME 105, ¶ 13, 927 A.2d at 1172
Appeal taken to
Peaker II, 2008 ME 98, ¶¶ 7, 8, 950 A.2d at 765
Supplementing record on appeal disapproved
Wesson, 667 A.2d at 599 n.7
Freedom of Access Act, 1 M.R.S. §§ 401
Bangor Publishing Co., 682 A.2d at 229
Chase, 1998 ME 260, ¶ 6
Yusem, 2001 ME 61, ¶¶ 16
Town of Bristol Taxpayers’ Ass’n, 2008 ME 159, ¶ 6 n.4,
957 A.2d at 978 n.4
Adequacy of notice of appeal under the Administrative Procedure Act
Town of
State does not admit liability by waiving immunity from suit
Keyes, 121
“Aggrieved party”/Standing
In re Maine Central R.R. Co., 134
Mandarelli, 320 A.2d at 25
Morissette, 350 A.2d at 333-34 (individuals cannot seek
abatement of tax levied against corporation)
Seaborne, 464 A.2d at 222
Town of
Passamaquoddy Water Dist., 1998 ME 94,
¶¶ 8
at 900
Mason, 1998 ME 201, ¶¶ 4
Delogu II, 2004 ME 18, ¶ 1 n.1, 843 A.2d at 34 n.1 (renters
who do not pay taxes have no standing)
A taxpayer can seek a declaratory judgment to determine whether tax assessment is invalid or void, or can proceed administratively by seeking abatement to determine whether property is improperly assessed, discriminatorily excessive, or exempt from taxation, and can join both claims
(exemption)
Dillon, 322 A.2d at 333
Lambert, 423 A.2d at 530 (exemption)
Alpha
(exemption)
Dodge, 577 A.2d at 347 & n.5 (poverty abatement)
Maine Central R.R. Co., 588 A.2d at 293 (exemption)
Camps Newfound/
at 1112 (exemption)
S. D. Warren Co., 1998 ME 66, ¶¶ 7-8, 708 A.2d at 1021
(abatement; void tax)
Passamaquoddy Water Dist., 1998 ME 94, ¶ 3, 710 A.2d at
899 (exemption)
Handyman Equipment Rental Co., 1999 ME 20, ¶ 16, 724
A.2d at 608
Capodilupo, 1999 ME 96, ¶ 4, 730 A.2d at 1258 (revaluation)
566 (exemption)
785 A.2d at 343, 347 (exemption)
Credit Counseling Centers, 2003 ME 2, ¶¶
8 & n.2, 14
814 A.2d at 461
& n.2, 462
Town of Bristol Taxpayes’ Ass’n, 2008 ME 159, ¶ 6 n.5,
957 A.2d at 979 n.5 (court
properly rejected declaratory judgment in discrimination abatement case)
Declaratory judgment action can be used even if taxpayer has not fully complied with providing “true and perfect lists” of property under 36 M.R.S. § 706
Handyman Equipment Rental Co., 1999 ME 20, ¶ 16, 724
A.2d at 608
Declaratory judgment action cannot be used to avoid untimely appeal
Maine Central R.R. Co., 588 A.2d at 292
Jurisdiction: cognizance of class of cases to which the one being adjudged belongs; proper parties; point decided must be in substance and effect within the issue
Dillon, 322 A.2d at 335
Justicability
Judicial notice
Mussey, 3
warrants to collectors)
Bayville Village Corp., 110
(contribution of summer resorts and game preserves are a matter of common knowledge and statistics)
Dead River Co., 149
“pulpwood”)
Mandarelli, 320 A.2d at 26 (pleadings)
Dillon, 322 A.2d at 335 (jurisdictional issues)
Official notice by administrative board, 5 M.R.S. § 9058
Adams, 1999 ME 49, ¶ 9 n.1, 727 A.2d at 349 n.1
Class actions to challenge legality of a tax assessed on all taxpayers
Taxpayers may join together to present abatement requests, 36 M.R.S.
§ 849, M.R. Civ.P. 20
Capodilupo, 1999 ME 96, ¶ 4, 730 A.2d at 1259
Town of Bristol Taxpayers’ Ass’n, 2008 ME 159, ¶ 5 n.3,
957 A.2d at 978 n.3
Estoppel is a doctrine to be used sparingly
Passamaquoddy Water Dist., 1998 ME 94, ¶ 10 n.3, 710 A.2d at 900 n.3
There can be no estoppel asserted against the exercise by the state of its taxing power
Milo Water Co. II, 131
Dolloff, 148
Magno, 486 A.2d at 142
Flower, 644 A.2d at 1031
Ring, 1999 ME 48, ¶ 13, 727 A.2d at 906
Fitzgerald, 1999 ME 50, 726 A.2d 1253 (passim)
Waiver distinguished from estoppel
Dolloff, 148
Intervention
Bangor Publishing Co., 682 A.2d at 231
Mandamus
Smyth, 31
Edwards Mfg. Co., 102
Young, 161
Mootness
Farrelly, 407 A.2d at 304 n.1 (agreement between parties to
change name of defendant)
Res judicata (claim preclusion)/collateral estoppel (issue preclusion)
Maine Water Co., 90
Sevigny, 344 A.2d at 38
Camps Newfound/
A.2d at 1112
Effect of stipulations is to bind parties in another proceeding concerning the same case
Sevigny, 344 A.2d at 39
When parties enter into stipulations on appeal, they are to be approved first by county commissioners or board of assessment review that had the initial fact-finding role
Christian Fellowship & Renewal Center II, 2006 ME 44,
¶¶ 9 n.2, 40-41, 896 A.2d at 290 n.2, 298
Evidentiary presumptions
Eastabrook, 568 A.2d at 1100 (fact that town cannot find 30-
year old lien certificate does not defeat the presumption that it was filed)
Vagueness
Falcone and Jannetti, 2006 ME 90, ¶ 6, 902 A.2d at 143
(domicile for tax purposes)
One who questions the constitutionality of a law or of administrative acts must show that he was injured by such
Livermore Falls Trust Co., 136
Mandarelli, 320 A.2d at 26
Falcone and Jannetti, 2006 ME 90, ¶ 5, 902 A.2d at 142
The
Dillon, 322 A.2d at 335
Statutory canons and rules of interpretation are helpful, necessary, time-tested, and revered, but are to be judiciously consulted and applied
Public Service Co. of
A.2d at 208
Look to legislative purpose to determine
severability, 1 M.R.S. § 71(8)
Opinion of the Justices, 2004 ME ¶¶ 25, 26, 850 A.2d at 1152
Specific statutory provisions
take precedence over general provisions
Camps Newfound/
Courts are not concerned with the wisdom of statutes, but only whether they comport with the Constitution
Crabtree, 122
Whether statutes are mandatory or directory
Mussey, 3
Race, 68
Lewis and Maxcey, 109
Hann, 305 A.2d at 549-50
Tax statutes are to be construed strictly and not extended by implication
Millett,
95
that relieve citizens of tax forfeiture are to be construed liberally)
Livermore Falls Trust &
Banking Co., 103
at 309
Hinds II, 141
Ambiguous tax statutes, imposing a burden on citizens, are to be construed in a light most favorable to the citizen
Millett, 95
McCarty, 158
Blaney, 455 A.2d at 1386
When construing a statute, look first to the plain meaning of the statutory language, seeking to give effect to legislative intent; and if the statute is clear on its face, do not look beyond the words themselves
Tri
Intertstate Food Processing Corp., 1997 ME 193, ¶ 4, 698 A.2d at 1075
Ellen M. Leach Memorial Home, 1998 ME 118, ¶ 5, 711 A.2d
at 151
Statutes are to be interpreted
to give effect to legislative intent and real purpose, not to nullify such
Hanscome, 108
in conflict with the words of the statute)
Roberta, 449 A.2d at 1140
Eagle Rental, 632 A.2d at 131
To determine legislative intent of a specific provision of law, court should consider entire legislation of which word or section at issue is a part
Hanscome, 108
Freeport Minerals Co., 437 A.2d at 644
Town of
Town of
A statutory tax scheme is to be considered as a whole in order to reach a harmonious result
Interstate Food Processing, 1997 ME 193, ¶ 4, 698 A.2d at 1076
Words and phrases in a statute
are to be construed according to their common meaning
Pejepscot Paper Co., 134
Words are to be given meaning
and are not to be treated as meaningless and superfluous or as surplusage
Handyman Equipment Rental Co., 1999 ME
20, ¶ 9, 724 A.2d at
607
Statutes are not always to be
interpreted literally, but with intent of the Legislature in mind
Hanscome, 108
Court is to look to the purpose of a statute and avoid a construction that leads to a result clearly not within the Legislature’s contemplation
Wright, 139
Greaves II, 143
Public Service Co. of New Hampshire, 158
A.2d at 207, 208 (statute that provided for appeal “not
less than 30 days after” deemed denial must be read as “within 30 days after”)
Courts are to avoid absurd
results even if that means disregarding the strict letter of the law
Wright, 139
Greaves II, 143
Public Service Co. of
A.2d at 208
Howard D. Johnson Co., 351 A.2d at 532
Strict construction of statutes will not be followed so closely as to make legislation unreasonable (where statute is a trifle indistinct but its meaning ascertainable)
Inhabitants of Whiting, 121
Madison Water Dist., 1998 ME 154, ¶ 7, 713 A.2d at 330
A thing within the letter of
statute is not within the statute if not within the intent of the statute
Hanscome, 108
Legislation must be considered in light of changed circumstances; times change; the wants and needs of people change
McCann, 107
Laughlin, 111
Madison Water Dist., 1998 ME 154, ¶¶ 7
The meaning of a word in a
statute depends on how the Legislature employed it
Dead River Co., 149
Courts may resort to dictionary definitions in construing statutes
McCann, 107
Definitions—
“Domicile” means residence and the intent to remain
Falcone and Jannetti, 2006 ME 90, ¶ 9, 902 A.2d at 143
“Doom” means “to assess” or “the assessment”
Race, 68
Bridge, 90
Sweetsir, 98
“Doom” day (April 1st)—ownership on that date fixes tax liability, see 36 M.R.S. §§ 502, 708
Donnell, 63
Woodman, 68
Sweetsir,
98
Edgerly, 377 A.2d at 109
Freeport Minerals Co., 437 A.2d at 643
Connecticut Bank & Trust Co., 477 A.2d at 272
See Town of
Finance Authority of
“Each” means every one of any number separately considered, and
“all” means every one of the whole number
Maine Central R.R. Co., 66
“Employed
in trade” refers to things prepared for market
“Give”
means to deliver, transfer, put into one’s possession, make
over
to another
Williams, 35
“Growth”
of wild land refers to the enlargement and increase of trees valuable for
timber and wood
Pejepscot Paper Co., 134
“Land” or “lands” means all real estate and all tenements and hereditaments connected therewith
Pejepscot Paper Co., 134
“Landing”
or “landing place” means a place on navigable water for
taking
on passengers or a place for depositing and storing logs for
transportation
and shipment by water or rail
McCann, 107
74
To
“manufacture” is to apply labor to make a new and different
article
with a distinctive name, character, and use; to make, create, or produce by
hand or machinery
Maine Crushed Rock & Gravel Co., 127
Buckley, 161
aggregate
with asphalt under controlled heat procedures to produce hot top is
manufacturing)
“Manufactured
lumber” includes all logs that have passed through a mill to be converted into
boards, even if not fully finished
Desjardins, 124
“Mill”
includes both the machine used for grinding and the building housing the
machine
Willis, 105
“Nonresidential
property” is defined by statute, 36 M.R.S. §§ 843(1
Ellen M. Leach Memorial Home, 1998 ME
118, ¶¶ 4 & n.1, 6,
711 A.2d at 151 & n.1
“Nonresident land” means “land of a nonresident”
Portland Terminal Co., 129
“Occupy”
means having control of in whole or part; having a special right to use
Hanscome, 108
“Overrated”:
overvaluation vis à vis just value, not other property
Penobscot Chemical Fibre Co. I, 99
Swazey, 132
“Persons”
and “inhabitants”
Inhabitants of Baldwin, 37
corporations)
Morrill, 95
“deceased
person” is one who is dead, see 36 M.R.S.
§ 559)
Hustus, 2004 ME 41, ¶ 8, 845 A.2d at 565
(quoting 36
M.R.S. § 111(3); “person” includes people)
“Real
estate” includes land and all tenements and hereditaments
connected
therewith, and all rights thereto, and interests therein
see 36
M.R.S. § 551
Portland, Saco & Portsmouth R.R. Co., 60
“Rebate”
is a return of part of a payment, serving as a discount or
reduction
Delogu II, 2004 ME 18, ¶ 41, 843 A.2d at
43 (concurring op.)
“Rossing”
is the mechanical process for removing bark
Machias Lumber Co., 122
“Similar” has two meanings: “exactly
corresponding” or “precisely alike,” and “nearly corresponding” or
“resembling in many respects”
Stowell, 122
The terms “timber,” “logs,” “pulpwood,” and “railroad ties” have no fixed definition, though Court defines “pulpwood” and determines that “railroad ties” are manufactured where prepared for final use
Dear River Co, 149
“Trade”
embraces any sort of dealing by way of sale or exchange; commerce; traffic; it
is applicable to a manufacturer of articles of trade as well as to a wholesale
or retail dealer
Gower,
93
Berlin
Mills Co., 93
Emple
Knitting Mills, 155
A “widow” is a woman whose husband has died and who has not
remarried
Holway, 130
Lewis and Maxcey, 109
Opinion of the Justices, 335 A.2d at 912 n.1
Eastler, 499 A.2d at 922 (Legislature’s concern with funding
forest fire protection services)
Shorefront property vs. nonshorefront property
Chase, 1998 ME 260, ¶ 19, 721 A.2d at 642
See Yusem, 2001 ME 61, ¶ 3, 769 A.2d at
868
Bayville Village Corp., 110
natural advantages of the coast of
Gaston, 150
Cf. Harwood, 2000 ME 213, ¶ 2, 763 A.2d at 116
Conservation easements
Wesson, 667 A.2d at 596
Reliance of
Sears, Roebuck & Co., 150
Reliance on Property Tax Bulletin
Roberta, 449 A.2d at 1140
Reliance on
Shawmut Inn, 428 A.2d at 390 n.4
Allen, 438 A.2d at 477 (1947 edition of Guide for Use of
Assessors set forth recommended guidelines for separate assessment of parcels)
III. Assessment/Collection
of Taxes
The entire process of collecting taxes, from valuing and assessing property to providing information regarding amounts due and accepting of funds for payment, is part of a unitary process intended to assure that government carries out paramount function of taxation by which it is enabled to exist and function
Fitzgerald, 1999 ME 50, ¶ 11, 726 A.2d at 1255
Powers of the State Tax Assessor, 36 M.R.S. §§ 201, 301 et seq., 381 et seq.,
Pejepscot Paper Co., 134
of state assessors has authority to tax unorganized areas)
Young, 161
The State Tax Assessor has no authority over local assessors, except in his discretion to order assessors to place on the tax rolls property previously exempt
Young, 161
Dillon, 322 A.2d at 334
Although assessors (and tax collectors) are chosen and employed by the municipalities they serve, they are public officers of the sovereign, not agents of municipalities
Thorndike, 82
collectors)
Lucy Farnsworth II, 93
Butterfield, 98
Penobscot Chemical Fibre Co. I, 99
Waldo Lumber Co., 128
McKay Radio & Telegraph Co. I, 131
Tozier I, 136
Stockman, 147
Dolloff, 148
Sears, Roebuck & Co., 150
Young, 161
Dillon, 322 A.2d at 335
Capitol Bank & Trust Co., 343 A.2d at 218-19
Sevigny, 344 A.2d at 41 (and holding office de jure entitles
one to his salary)
Eldridge, 392 A.2d at 40
Flower, 644 A.2d at 1032
Assessors are not subject to the direction and control of a municipality
Thorndike, 82
Lucy Farnsworth II, 93
U. S. Pegwood & Shank Co., 123
McKay Radio & Telegraph Co. I, 131
Milo Water Co. II, 131
Young, 161
Dillon, 322 A.2d at 334
They are accountable to no one—only to their personal faithfulness and integrity—so long as they perform their duties in accordance with constitutional mandate and statutory direction
Trim, 41
Herriman, 43
Rowe, 90
As public officers, assessors are responsible for only their own acts, and not prior acts of the town
Clough, 8
Their terms and duties are fixed by law, which cannot be altered by a municipality; see 36 M.R.S. § 313 for chief assessors
Thorndike, 82
Lucy Farnsworth II, 93
Removal of an assessor, 36 M.R.S. § 314 (for chief assessors), must meet due process requirements
Sevigny, 344 A.2d at 40 (need for impartial hearing officer)
A tax warrant originally signed by “selectmen” may be corrected to show they acted as “assessors”
Whittier, 122
Assessors and selectmen may be the same or different individuals
McKay Radio & Telegraph Co. I, 131
If a town does not select assessors, the selectmen are the assessors, 36 M.R.S. § 703
Trafton, 15
by law to choose assessors or selectmen, who must be assessors, if others be not chosen . . . “)
Gould, 61
Goud, 75
See Jordan, 85
But selectmen must be sworn as assessors, 36 M.R.S. § 703
Goud, 75
competency, there can be no legal assessment”)
Jordan, 85
chosen at town meeting at which no assessors were selected cannot act as an assessor)
Legality of calling or place or notice of city council or selectmen/assessors, village corporation, or school district meeting and effect on legality of taxes
Ford, 8
Trafton, 15
Hathaway, 48
Paul I, 84
Union Water Power Co. II, 90
Huse, 112
Perry II, 149
Challenge to legality of selection of assessors and/or tax collector, or to their having been sworn
Morrell, 1
Mussey, 3
nonacceptance of office)
Clough, 8
meeting)
Kellar, 20
not deny legality of his election)
Payson, 30
Blanchard, 32
been legally chosen in absence of contrary evidence)
Hathaway, 48
not show assessors were chosen by ballot)
Allen, 49
assessors have no authority to assess taxes)
Shaver, 50
to being on tax collector’s bond, to be accepted by town)
Moan, 50
irregularities” in selecting tax collector, question is whether they are of such character to exonerate payment of taxes
Lord, 51
and one never was sworn after being elected, the other two were not a majority of the three, and their actions were void; failure to take oath is nonacceptance of office)
Mason, 55
duly sworn not resolved)
Greene, 58
was duly sworn)
Gould, 61
and give bond is nonacceptance of office)
Carville, 62
in office of tax collector to name new collector, where present collector had not fulfilled his duties)
Small, 77
Reed, 78
term of office of does not affect city charter providing that one serves as assessor until successor is elected)
Palmer, 79 Me at 472
meeting without authority to swear those elected as assessors)
Parker, 83
clerk can swear assessors when no statute requires them to be sworn at all)
Bowler, 84
was sworn by town clerk, use of ditto marks do not show assessors were duly sworn)
Jordan, 85
chosen at town meeting at which no assessors were selected cannot act as an assessor)
Whiting, 85
testify to administration of oath being given to tax collector)
Belfast Hotel Co. II, 89
municipal record for office of assessor)
Union Water Power Co. II, 90
(irregular method of electing assessor and tax collector of no consequence where assessor may be assumed to have held office from previous election)
Randlette, 98
were bound to approve bond if sum and sureties are satisfactory, thus tax collector lawfully claimed office)
Butterfield, 98
cannot be both assessor and tax collector, and a tax collector elected assessor is at best an assessor de facto)
Bridges,
98
challenge assessment, by bill of exceptions, based on claim of defective election of assessors)
Baker, 102
Blair, 104
tax collector by ballot is irregular, he is nonetheless a de facto officer to whom taxes must be paid)
Sherwin
(return of town warrant for election of aldermen, who elected assessors and tax collector, could be amended, thus legitimating election of assessors and tax collector and assessment and commitment of tax)
Lewis and Maxcey, 109
sufficiently showed assessors were duly sworn and qualified)
Lucy Farnsworth III, 111
68
U. S. Pegwood & Shank Co., 123
(town complied with statute requiring election of “three or more assessors” when it elected three)
sufficient to show town duly elected and qualified
assessor)
Vigue, 138
that all actions relating to election of assessors are proper unless challenged)
Wright, 139
properly sworn, so as to be able to swear assessors)
Hann, 305 A.2d at 550 (verbal and informal appointment of
tax collector rendered tax lien unenforceable)
Stevenson, 2007 ME 55, ¶ 8, 930 A.2d at 1048 (where town
charter provided that board of assessment review must have three members and did not provide for alternates, board with only two members had no authority to act);
¶¶ 13-19, 930 A.2d at 1050-51 (concurring opinion would hold that 1-1 board vote on assessment request
had effect of affirming assessor’s decision, but board with quorum could act)
Assessors were duly sworn when they took oath to faithfully and impartially perform their duties
Patterson, 42
Gould, 61
A board of assessment review is not partial simply because its members are taxpayers of the town in which the abatement request is made
Paul II, 110
Whether assessors who are not properly sworn have de facto authority
Reed, 78
Union Water Power Co. II, 90
Butterfield, 98
Powers of assessors
Thorndike, 82
Rowe, 90
assess and commit taxes need not await State Treasurer’s warrant directing local assessments)
Lucy Farnsworth II, 93
Butterfield, 98
Paul II, 110
Works, acting as assessors, could make assessments for sewer only in proportion to benefit provided, but statute did not expressly grant power of assessment)
Young, 161
Dillon, 322 A.2d at 334
Assessors have the authority to require all persons liable to be taxed to provide “true and perfect lists” of property under oath, now under 36 M.R.S. § 706, or else a taxpayer is not entitled to an abatement if he does not comply
Inhabitants of Winslow, 37
Patterson, 42
Lambard, 53
Inhabitants of Freedom, 66
Inhabitants of
Inhabitants of Orland I, 76
Inhabitants of Orland II, 76
Edwards Mfg. Co., 102
Powell, 108
Portland Terminal Co., 129
Perry I, 145
Dead River Co., 149
Maine Lumber Co., 157
Rights of assessors to require a taxpayer, upon inquiry, to
provide information under the fourth paragraph of now
“the nature, situation and value” of the property
Inhabitants of Freedom, 66
reasonable time after April 1st to make inquiries)
Inhabitants of Levant, 67
answer all proper inquiries)
Cf. Inhabitants of Orland I, 76
municipality could not require that a “true and perfect list” include value of the property)
Powell, 108
not be in writing; assessors may require answers to be in writing; statute does not place a time limit on the inquiry, which although made after April 1st must be understood to have related to that date)
Champion Intl. Corp., 667 A.2d at 1377 (taxpayer cannot be
deprived of right to appeal if assessors do not first
demand a “true and perfect list” of property under the first paragraph of 36 M.R.S. § 706)
Under previous statutes, the failure of assessors to give notice to inhabi-tants of a town to bring their lists of taxable property before an assess-ment was made was not a condition precedent to a valid assessment
Mussey, 3
Race, 68
See Perry
I, 145
Requirement of notice under present statute
Farrelly, 407 A.2d at 304
Nonresidents formerly had no obligation to provide “true and perfect lists” of property
John P. Squire & Co., 106
Cf. Edwards Mfg. Co., 108
Portland Terminal Co., 129
Farrelly, 407 A.2d at 304
But this changed by statutory amendment in 1944
Dead River Co., 149
One not liable to taxation at all is not required to file a 36 M.R.S. § 706 list
Depositors Trust Co., 295 A.2d at 30
Howard D. Johnson Co., 351 A.2d at 526
Madison Water Dist., 1998 ME 154, ¶ 5, 713 A.2d at 330
Handyman Equipment Rental Co., 1999 ME 20, ¶ 9, 724
A.2d at 608
Inquiries that assessors are authorized to make under 36 M.R.S. § 706 should be concerned only with nonexempt property
Handyman Equipment Rental Co., 1999 ME 20, ¶ 10, 724
A.2d at 608
“Property liable to taxation” in the fourth paragraph of 36 M.R.S. § 706
refers to property that is not exempt; exempt property is not liable to taxation while nonexempt property is liable to taxation
Depositors Trust Co., 295 A.2d at 30
Handyman Equipment Rental Co., 1999 ME 20, ¶ 10, 724
A.2d at 608
One purpose of the law is to assist assessors in making correct and complete assessment
Perry
I, 145
Another purpose is to prevent property liable to be taxed from escaping taxation
Brown, 53
Dead River Co., 149
The list must be furnished before an assessment is made
Perry I, 145
Maine Lumber Co., 157
Once a taxpayer has listed property as his, he cannot claim he is not the owner, at least in the absence of fraud, accident, or mistake
Dead River Co., 149
Assessors are not bound by the list provided by a taxpayer, but may assess property not included in the list
Gilpatrick, 57
Perry I, 145
The assessors’ authority to demand that taxpayers provide a “true and perfect list” of their taxable property does not mean it must be delivered personally by a taxpayer
Perry I, 145
Inhabitants of
Winslow v.
County, 37
The only permissible reason for not filing a “true and perfect list” is that the taxpayer “was unable” to do so; the statute does not permit a “good cause” or “reasonable excuse” inquiry
Edwards Mfg. Co., 102
(taxpayer’s misapprehension that it was not required to file list of no consequence)
Maine Lumber Co., 157
Assessors can assess an overlay of no more than 5%, 36 M.R.S. § 710
Mosher,
11
Parker, 83
Assessors have the duty to assess for delinquencies as much as to make an original assessment
Patterson, 42
Assessors can make assessments only within their authority and jurisdiction, and beyond that may be sued for recovery of taxes assessed
Mosher, 11
Powers, 39
assessment)
Patterson, 42
Herriman, 43
Hathaway, 48
Assessors’ correction of assessment, as by interlineation, before commitment of taxes is permissible and is not an abatement
Lucy Farnsworth III, 111
Hayford Block Co., 120
Whether assessors must sign the assessment and commitment, 36 M.R.S. § 709
Colby, 3
signed by assessors)
Foxcroft, 4
Johnson, 15
official sanction of a majority of the assessors, evidenced by their signatures”)
Kellar, 20
preparatory to issuance of tax list and warrant, was
not signed “savors somewhat of a technicality, to say the least of it”)
Lancey, 21
list and referring to original list satisfied requirements or commitment of taxes)
Lowe, 52
assessments complied with statute to allow tax collector to act)
Pearson II, 64
ment for municipal treasurer to act against tax collector for failing to have collected taxes)
A lawful tax list requires the signatures of at least a majority of a board of assessors
Cassidy, 134
Assessors of village corporation chartered within town can adopt previous assessments of town
Huse, 112
A municipality is not liable for assessors’ failure to assess particular property
Emery, 92
Lucy Farnsworth II, 93
Although their failure in previous years to tax property that by law should have been taxed does bind a municipality in a subsequent year
Lucy Farnsworth II, 93
One cannot be both a tax collector and an assessor at the same time
Butterfield, 98
Sherwin
(the duties of tax collector have no connection with
valuation of property)
Assessors have nothing to do with the collection of taxes
Inhabitants of
Tax collector is an indispensable party when taxpayer seeks recovery of money based on the claim that the tax is invalid; assessor does not have possession of collected taxes, and in not a proper party
The Legislature has delegated the collection of taxes to municipalities
Waldo Lumber Co., 128
Dolloff, 148
Proceedings for tax collection are broadly construed, except when involving forfeitures
Cressy II, 76
McKay Radio & Telegraph II, 132
Powers and duties of a tax collector
Gould, 15
sinews of government,” is bound to collect all moneys assessed for given year for which he had sufficient warrant)
Johnson, 15
collected based on tax list, though without proper tax warrant)
Deane, 17
prima facie evidence of payment of overage to taxpayer)
Kellar, 20
in due form)
Brown, 25
procedural particularity to enforce tax sale)
Millett, 26
Blanchard, 32
distraint, see now 36 M.R.S. §§ 991, 992, must
immediately pay to taxpayer any overage collected from sale of chattels)
Williamson, 32
of distraint cannot sell more chattels than necessary to cover taxes due)
Clark, 33
warrant from competent authority)
Phillips, 40
White, 41
collection on a defective tax warrant, and is not at
fault for not collecting pursuant to such warrant)
Wedgewood, 44
excuse executing warrant, but tax collector must account for taxes collected without objection)
Stanley, 47
cannot be used, if moneys are collected in subsequent years, to appropriate deficiency in balance in earlier year)
Brackett, 49
power of distraint beyond terms of warrant)
Bowker, 49
36 M.R.S. § 993, for failure to pay taxes, one not
subject to taxation)
Moan, 50
an act, it must be shown that tax collector had legal warrant to enforce collection; bond adequate though “inartfully drawn”)
Packard, 50
payment of taxes except as provided by statute)
Parker, 53
although without proper bond, when there was a valid warrant)
Mason, 55
Hall, 57
directions in tax warrant, and is chargeable for all taxes committed to him; and may distrain and sell goods an chattels of delinquent taxpayers, and commit them to jail)
Carter, 59
distraint must immediately pay to taxpayer any overage collected from sale of chattels)
Seekins, 61
distraint cannot sell more chattels than necessary to
cover taxes due)
Pearson II, 64
only with legal warrant and perfect list of taxes assessed
and committed)
Goodwin, 67
demand for taxes; suit to recover taxes may also be brought in name of inhabitants of town)
Giles, 68
a facially defective warrant, but taxpayers may waive defect by payment)
Orr, 69
description of real estate excused tax collector, who since absconded, from collecting taxes thereon)
Snow I, 71
for noncollection of taxes, against town treasurer if he illegally issued warrant)
Snow II, 73
from collecting, but not from not paying taxes collected
thereon)
Snow III, 74
warrant, tax collector is liable for noncollection of taxes)
Thorndike, 82
warrant, is chargeable with paying whole amount to treasurer)
Miller, 88
absolute demand for payment of taxes due; anything that plainly brings home to taxpayer that collector requires payment is sufficient)
Maddocks, 89
Belfast Hotel Co. II, 89
Bennett, 90
process to require deposit of amount of tax, interest,
and charges owed to challenge its forfeiture by tax sale);
90
ministerial officer)
Fenlason, 109
not arrest taxpayer for nonpayment of taxes until after 12th day following demand, see now 36 M.R.S. § 993)
Clark, 113
collector for payment of taxes due must be made in
person)
Milo Water Co. I, 129
collector had no right to bring suit to recover taxes for town without written directive from selectmen)
Cleary, 132
for taxes committed to him but not collected)
Hann, 305 A.2d at 547 (tax collector’s lien invalid unless all
conditions precedent to foreclosure have been complied with)
Compensation of tax collector, 36 M.R.S. §§ 756, 759
Bragdon, 84
penalty on tax collected for late payment to town of taxes collected where it would work injustice)
Bennoch, 158
corporation within town must compensate tax collector for supplies as town voted to compensate her)
The giving of a bond by the tax collector, see now 36 M.R.S. § 755, being directory only, is not a condition precedent to his assuming his duties
Parker, 53
Giles, 68
Payment of taxes may be shown by receipt of tax collector, 36 M.R.S. § 757
Campbell, 122
A tax collector is responsible for only his own illegalities, but not those arising from the assessment
Clough, 8
irregularities prior to commitment)
Caldwell, 40
against any illegality but his own)
Judkins, 48
Parker, 53
Nowell, 61
from all irregularities antecedent to commitment,
including taxing of nondomiciliary)
Pearson I, 61
under a warrant that is repugnant to prescribed form and not in accord with statutory provisions)
Carville, 62
of land; admissibility of parol evidence to describe land)
Surety on tax collector’s bond can be required to pay, where defalcations are found in collector’s office, only that part of audit expense attributable to discovery and analysis of tax collector’s shortages
Maine Bonding & Casualty Co., 274 A.2d at 442
The tax committed is the only basis for fixing the amount of taxes due
Pearson II, 64
The abatement process, with appeal to the proper tribunal,
is the method to correct overvaluation,
Holton, 23
Stickney, 30
Hemingway, 33
Herriman, 43
Gilpatrick, 57
Waite, 66
Rockland Water Co., 82
Paul I, 84
Portland Terminal Co., 129
(abatement is the only remedy if property is overvalued, not owned by the taxpayer, or exempt, or if one is assessed taxes on property laying in another municipality)
Reid, 132
exist in either assessing to a person property he does not own or estimating too highly that which he does own, but overvaluation is not a defense to an action to recover tax on real estate, unless one is not an inhabitant of taxing town)
Perry II, 149
requested from the assessor, is
restricted to the issue of over
Overvaluation can arise in assessing property which a person does not own or in too highly estimating its value
Whitmore, 79
The assessment in fact, not what assessors intended to do or thought they did, determines what was assessed
Sweetsir, 98
S. D. Warren, 1998 ME 66, ¶ 9, 708 A.2s at 1022
Whether a request for abatement need be in writing; see now 36 M.R.S.
§ 841(1)
Inhabitants of Levant, 67
Inhabitants of Orland II, 76
Assessors need not keep a written record of their handling of a request for abatement
Inhabitants of Levant, 67
No abatement is available or need be sought if a tax imposed was void
Herriman, 43
Hathaway, 48
Talbot, 116
Edgerly, 392 A.2d at 106
S. D. Warren, 1998 ME 66, ¶ 8, 708 A.2d at 1021
Whether a taxpayer can recover taxes assessed ostensibly for an illegal purpose or in a defective manner, 36 M.R.S. § 504
Rogers, 58
insufficient)
Gilman, 59
Hayford, 62
assessors)
overvaluation is an illegality, by irregularity in assessment, for which one as the remedy of abatement)
Blondell, 82 Me at 156, 19 A. at 94
omissions of assessors do not void assessment)
Rowe, 90
Creamer, 91
recover taxes voluntarily paid even if illegally assessed,
but nonresident can sue to recover taxes paid under protest)
Emery, 92
U. S. Pegwood & Shank Co., 123
(same)
Goldstein, 1998 ME 261, ¶ 10, 721 A.2d at 182 (errors leading
to overvaluation do not constitute an illegality)
The abatement process need not be undertaken by taxpayer to
obtain relief from over
Eastport Water Co., 288 A.2d at 723
A municipality has no power to abate a tax assessed by the local assessors
Thorndike, 82
Lucy Farnsworth II, 93
U. S. Pegwood & Shank Co., 123
Cf. Waldo Lumber Co., 128
(municipality may abate taxes assessed, but only through assessors following rigid rules)
Dolloff, 148
Milo Water Co. II, 131
Young, 161
Assessors’ failure to make a record of assessment or file certificate of assessment does not give a taxpayer ground to challenge the assessment
if the commitment of taxes has been subscribed to by the assessors and is in the hands of the tax collector
Lowe, 52
Walker, 71
Whitmore, 79
Either the list in the hands of the assessors or the list in the hands of the tax collector may be relied upon
Howe, 87
Commitment of taxes means all things have been done by assessors to complete the assessment
Lewis and Maxcey, 109
Assessors can commit taxes anytime after April 1st, when assessment is made, and statute directing time of commitment to tax collector was directory only although written with “shall”
Lewis and Maxcey, 109
Informalities in a tax warrant do not defeat its authority
Parker, 83
But a warrant must state a date by which taxes are due
Jacques, 96
Assessors may make supplemental assessments; see now 36 M.R.S. §§
581-B, 713, 713-B, 1331
Gould, 61
Dubois, 645 A.2d at 1127 (tree growth withdrawal penalty is
supplemental assessment)
But only if there was a lawful tax list or assessment to supplement
Walker, 71
Cassidy, 134
If a supplemental assessment is permissible, property still must be assessed as of April 1st as a part of the original assessment
Lancey, 21
Prime, 98
Sweetsir, 98
A supplemental assessment is valid only if municipality asserts property was not assessed and was omitted by mistake from original assessment, but not if they simply made an error in judgment of the value of property
Bridge, 90
Purinton, 94
Sweetsir, 98 A. at 152, 56 A. at 586
S. D. Warren Co., 1998 ME 66, ¶ 8, 708 A.2d at 1021
If a municipality contends its assessors did not assess certain property, and so can issue a supplemental assessment, the municipality bears the burden of sustaining the validity of the supplemental assessment
Sweetsir, 98
S. D. Warren, 1998 ME 66, ¶ 10, 708 A.2d at 1022
Refunds after tax abatements are paid by the taxing authority, not by assessors or tax collectors as individuals
Camps Newfound/
at 1114
Interest on tax refunds, 36 M.R.S. §§ 111(5), 505, 506-A
Camps Newfound/
A.2d at 1115
Proper assessment practice requires that property be described sufficiently to identify it with reasonable certainty, either by its own terms or by reference to a recorded document or other writing that contains a sufficient description, and more specifically for tax liens and tax sales
Porter, 1
Brown, 25
lands to be sold for taxes, to give such a description as will enable owners to know, that the lands advertised are theirs”)
Adams, 46
Larrabee, 58
French, 61
Veazie II, 61
Greene, 63
Nason, 63
contain sufficient description of property)
Whitmore, 70
Moulton, 75
Inhabitants of Orland II, 76
produced with adequate description)
Cressey II, 76
Libby, 80
Parsons, 86
Lawry, 89
Alden, 92
Burgess, 95
Millett, 95
Baker, 102
Kelley, 110
Foulkes, 119
Hunt, 121
refer specifically to buildings, as they pass with the land, and terms that describe the property’s use are sufficient)
Keyes, 121 Me at 312, 117 A. at 170
Milo Water Co. II, 131
Oceanic Hotel Co., 143
Perry II, 149
Gray, 150
need not refer specifically to buildings, as they pass with the land, and terms that describe the property’s use are sufficient)
McCarty, 158
Ouellette, 219 A.2d at 547 (tax lien, 36 M.R.S. §§ 942, 943)
Arsenault, 275 A.2d at 599-600 (tax lien, 36 M.R.S. § 552)
Fickett, 390 A.2d at 471 (same)
Dwyer, 490 A.2d at 662 (same)
Aucella I, 564 A.2d at 69 (tax lien, 36 M.R.S. § 552)
Eastabrook, 568 A.2d at 1098-99 (tax lien, 36 M.R.S.
§§ 552, 942)
Nadeau, 572 A.2d at 492
942, 943; description of property subject to lien is sufficient if it describes the property by metes and bounds, or landmarks, or refers to a plan or map by name, or tells the location of the particular plan or map; need not be in minute detail)
Dubois, 645 A.2d at 1127
M.R.S. § 552)
Assessors have reasonable discretion to determine whether or not separate parcels exist
Fickett, 390 A.2d at 471
Allen, 438 A.2d at 476 (mere presence of road does not
require finding that land is two parcels)
Separate and distinct parcels of real estate are to be assessed and taxed separately, and land separately from buildings, see now 36 M.R.S. § 708
Shimmin, 26
Nason, 63
Gray, 150
McCarty, 158
Fickett, 390 A.2d at 471
Allen, 438 A.2d at 475
Johnson, 490 A.2d at 1190
But the description of property taxed or separate valuations on each of several parcels is not required in a town’s assessment
Blake, 74
Cressy II, 76
assessments and forfeitures by tax sales)
Ulmer I, 84
Lucy Farnsworth III, 111
personal estate)
Swazey, 132
Kramer, 144
devisee under will made in gross, without showing assessment for individual lots, not improper when lien certificate provided liability of each lot)
Fickett, 390 A.2d at 471
There must be strict compliance with statutory requirements to divest property owners of property by lien and foreclosure
Keene, 19
Shimmin, 26
Greene, 58
French, 61
Tolman, 68
Treat, 68
the municipality, could not convey title)
Cressey II, 76
United Copper Mining & Smelting Co., 85
27 A. at 185
Bowler, 84
Parsons, 86
Stafford, 97
Roberts, 106
Baker, 102
Kelley, 110
Stowell, 122
Milo Water Co. II, 131
Robbins, 134
is to facilitate the substantial right of redemption)
Van Woudenburg, 136
(municipal clerk must record copy of collector’s notices and his certificate)
Lowden, 136
Scavone, 142
Dudley, 152
Blaney, 455 A.2d at 1387 (failure of notice voids tax lien
certificate)
name of owner of property; actual knowledge satisfies notice, but not recording, requirements)
Nadeau, 572 A.2d at 492 n.2 (same)
Dubois, 645 A.2d at 1127
Cf. Livonia, 1998 ME 39, ¶¶ 7, 8, 707 A.2d at 86 (mailing of lien claim, return receipt requested, sufficient to meet due process requirements of notice although live-in
companion with bipolar disorder signed for notice)
Anderson, 1999 ME 70, ¶ 16, 728 A.2d at 1257-58
(where real estate is not assessed to the record owner,
the record owner must be notified of tax lien before property may be divested, 36 M.R.S. § 942, unless record owner has actual notice, 36 M.R.S. § 943, provided that the municipality has named the record owner on the lien certificate)
Taxes legally assessed on an estate create a lien thereon, 36 M.R.S. § 552
Williams, 35
Ring, 1999 ME 48, ¶ 6, 727 A.2d at 903-04
Real estate cannot be forfeited by lien to enforce the collection of a tax on personal property
Scavone,
142
There can be no valid tax lien without a prior valid assessment
Taxpayer can challenge validity of a tax in a lien proceeding
Exxon Corp., 351 A.2d at 536-37
Taxpayers have the duty to learn what is being done to enforce a lien of taxes against their property
Mandarelli, 320 A.2d at 30
Ring, 1999 ME 48, ¶ 14, 727 A.2d at 906
Municipality had no duty to inform taxpayer, purchasing other property from municipality, that it was not applying any of the money to discharge tax liens
Harrington, 381 A.2d at 641-42
Interest and fees on tax liens, 36 M.R.S. §§ 942, 942-A, 943
Aucella I, 564 A.2d at 69
Ring, 1999 ME 48, ¶ 6, 727 A.2d at 904
A municipality cannot discriminate against nonresidents in not permitting redemption, and reconveyance, of foreclosed property
But see Roberts, 106
different tax sale notice requirements for residents versus nonresidents)
Aucella II, 583 A.2d at 216-17 (discussing discriminatory
intent as component of equal protection)
See Aucella III, 628 A.2d at 124 (“Nonresidence of a state,
town, or locality is not a permissible basis for different
treatment of property owners absent a legitimate reason
for the distinction”)
Notice requirements for tax liens/foreclosures/sales
Porter, 1
Phillips, 61
with advertising and sale requirements)
Tolman, 68
Wiggin, 73
Ladd, 84
United Copper Mining & Smelting Co., 85
27 A. at 185-86 (discussion of publication)
Stafford, 97
Roberts, 106
Lowden, 136
Mandarelli, 320 A.2d at 29
Cummings, 430 A.2d 825 (passim)
McNaughton, 1997 ME 182, ¶¶ 6-8, 698 A.2d at 1051-52
Ocwen Federal Bank, FSB, 2001 ME 120, ¶ 11-21, 777 A.2d
at 279-82 (town that recorded tax lien must be joined
as necessary party in foreclosure action)
Procedure for tax sales, see now 36 M.R.S. §§ 1071-1084
Brown, 25
Phillips, 40
Veazie I, 57
Roberts, 106
Keyes, 121 Me at 315-28, 117 A. at 172-77
Robbins, 134
Dolloff, 148
Tax collector cannot sell more property than is required to pay taxes due
Andrews, 32
Lovejoy, 48
Whitmore, 70
Briggs, 71
Wiggin, 73
Ladd, 84
Milliken, 97
A purchaser of land by a tax deed must obtain relief for consideration paid
from the covenanter, not the state or municipality, if the deed proves defective, absent a waiver of immunity from suit
Arnold, 118
Keyes, 121
The rule of caveat emptor does not apply to the purchase of real estate at a sheriff’s sale where there has been a complete failure of title
Martel, 311 A.2d at 547
Authority of local board of assessment review to reconsider a previous decision
Forbes, 2001 ME 157, ¶¶ 7-12, 763 A.2d at 1186-88
(discussion of 30-A M.R.S. § 2691(3)(F))
Appeal process described
International Woolen Co., 2003 ME 80, ¶ 11, 827 A.2d at 842-43
Appeals from abatement decisions are a matter of legislative privilege, not constitutional right
Paul II, 110
An enlargement of the period to appeal to the Superior Court is not permitted where there exists a statutorily-provided appeal period
Reed, 393 A.2d at 162
The
McKay Radio & Telegraph Co. I, 131
Blake, 152
Now, however, in an abatement appeal, the municipality, not the assessors, is deemed the proper party adverse to the taxpayer, and so assessors have no right to appeal
Eldridge, 392 A.2d at 40 & n.2, correcting S. D. Warren Co.,
138
Drummond, 402 A.2d at 470
Shawmut Inn, 428 A.2d at 388
See Freeport Minerals Co., 437 A.2d at 642 n.1
Connecticut Bank & Trust Co., 477 A.2d at 271 n.5
Naming the State Tax Assessor or a municipality as a party does not make local assessors parties to a case
Dillon, 322 A.2d at 334, 335
Once a petitioner has appealed, he has taken the case out of the munici-pality’s hands, and so the Superior Court would be giving merely an advisory opinion re whether assessors followed the law in this regard
Dodge, 577 A.2d at 347
Statutory requirement that an appeal from tax assessors must be taken to a board of assessment review, see now 36 M.R.S. §§ 843(1), or to the county commissioners, see now section 844(1)
Whitmore, 79
Kokernak, 612 A.2d at 873
Who may appeal when the ownership of property changes hands during the tax year under consideration
requested abatement, and subsequent owner could
have done so, subsequent owner appealed to board
of assessment review, and both appealed to court)
Formerly, a taxpayer must have paid taxes in order to appeal (N. B.: now modified by statute)
Dubois, 645 A.2d at 1128 (application of former statute)
Interstate Food Processing, 1997 ME 193, ¶ 5, 698 A.2d at 1076
The failure to pay taxes by due date when an appeal is taken after due date will result in suspension, not dismissal, of appeal
Interstate Food Processing, 1997 ME 193, ¶ 6, 698 A.2d at 1076
Whether an appeal to county commissioners or a board of assessment review was timely
Kokernak, 612 A.2d at 873-74 (county commissioners)
International Woolen Co., 2003 ME 80, ¶¶ 13-15, 827 A.2d at
843-44 (board of assessment review)
A deemed denial may be thought of as a pocket veto
Public Service Co. of
A.2d at 208
An agreement to extend the period for a municipality to decide an appeal may be granted by a taxpayer implicitly
Kokernak, 612 A.2d at 874
International Woolen Co., 2003 ME 80, ¶ 12, 827 A.2d at 843
A municipality does not lose authority to consider an appeal after the expiration of the deemed denial period
International Woolen Co., 2003 ME 80, ¶¶ 13-15, 827 A.2d at
843-44
While an aggrieved party is entitled to a de novo hearing before Board, 36 M.R.S. § 273, 843(1-A), 844(2), this does not mean the party is entitled to a de novo determination of the assessment
Central Maine Power Co., 649 A.2d at 322-23
Remedy questions: (a) county commissioners, (b) board of assessment review, or (c) Board of Property Tax Review has the power only to grant abatements as they see fit, not to remand a case to assessors to recom-pute tax due
Muirgen Properties, 663 A.2d at 58, (a)
Adams, 1999 ME 49, ¶¶ 24, 26, 727 A.2d at 351, 352, (c)
See Harwood, 2000 ME 213, ¶ 7, 763 A.2d at 117, (b)
Remand for further findings by commissioners/board of review
Camps Newfound/
Assessment in the first instance is not for the courts
Perry II, 149
Weekley, 676 A.2d at 934
A court does not decide which of opposing figures is better, nor does it substitute its own estimate of value; that is a function of a board of assessment review, upon consideration of all the evidence
Muirgen Properies, 663 A.2d at 59
Weekley, 676 A.2d at 934
Quoddy Realty Corp., 1998 ME 14, ¶¶ 8, 11, 704 A.2d at 409, 410
Due consideration requires at least fair and reasonable consideration, with an open mind, while judging the weight of the evidence, and a factor relied upon must be reflected in the finding of value
IV. Valuation
of Property
Fair market value = just value = correct, honest, true, real value
Spear, 125
Alfred J. Sweet, 134
Sears, Roebuck & Co., 150
Kittery Electric Light Co. I, 219 A.2d at 734
Frank, 329 A.2d at 173
Shawmut Inn, 428 A.2d at 389
Eastler, 499 A.2d at 924
Muirgen Properties, 663 A.2d at 58
Weekley, 676 A.2d at 934
McCullough, 687 A.2d at 631
J & N Sanford Trust, 1997 ME 97, ¶ 13, 694 A.2d at 459
Quoddy Realty Corp., 1998 ME 14, ¶ 9, 704 A.2d at 409
Harwood, 2000 ME 213, ¶ 19, 763 A.2d at 120
Opinion of the Justices, 2004 ME 54, ¶ 15, 850 A.2d at 1150
Value is measured by highest price a normal purchaser, under normal conditions, would pay for it; what the property will bring at a fair public sale, with a willing seller and willing buyer
Spear, 125
Alfred J. Sweet, 134
Frank, 329 A.2d at 173
Shawmut Inn, 428 A.2d at 394
Weekley, 676 A.2d at 934
J & N Sanford Trust, 1997 ME 97, ¶ 13, 694 A.2d at 459
Emphasis on arm’s length nature of transaction of comparable property in assessing value of property in question
Harwood, 2000 ME 213, ¶¶ 10, 11, 14, 19, 763 A.2d at 118,
119, 120
Northeast Empire Ltd. Partnership #2, 2003 ME 28, ¶¶ 13, 16,
818 A.2d at 1025, 1025-26
Fair means nondiscriminatory, and just means in line with the fair market value of the property
Yusem, 2001 ME 61, ¶ 13, 769 A.2d at 871
If property is assessed at its true market value, and the valuation is consistent with those of similar properties, a taxpayer has suffered no constitutional harm
Chase, 1998 ME 260, ¶ 11, 721 A.2d at 640
Roberts, 2004 ME 132, ¶ 4, 861 A.2d at 618
Size of parcel alone does not determine land value
McDougal, 146
Value must be distinguished from valuation
Penobscot Chemical Fibre Co. I, 99
Shawmut Mfg. Co., 123
But they may be intimately related
Shawmut Inn, 428 A.2d at 393 n.8
Value-in-use is not necessarily value
IBM Credit Corp., 665 A.2d at 665-66 (dissenting op.)
If true value cannot be determined, uniformity and equality are preferred
Shawmut Mfg. Co., 123
Spear, 125
Kittery Electric Light Co. I, 219 A.2d at 734
Farrelly, 407 A.2d at 307
Town of
J & N Sanford Trust, 1997 ME 97, ¶¶ 13, 17, 694 A.2d at 459, 461
UAH-Hydro
(“Where uniformity conflicts with just or market value, treating like taxpayers equally must prevail”)
Determining the correct method of valuation of personal property
N. J. Gendron Lumber Co., 151
at 562, 563 (manufactured lumber should have been valued under statutory annual average amount formula, not amount on hand as of April 1st)
Emple Knitting Mills, 155
(materials that make up finished merchandise, as well as finished merchandise kept on hand for sale, should have been valued under statutory average amount formula)
In appraising real property, consider all uses to which it may be put by owner and all conditions which affect its value
Penobscot Chemical Fibre Co. I, 99
Alfred J. Sweet, 134
Consider all factors and surroundings in assessing value
Glenridge Development Co., 662 A.2d at 931
Quoddy Realty Corp., 1998 ME 14, ¶ 5, 704 A.2d at 408
Chase, 1998 ME 260, ¶ 18, 721 A.2d at 641
Pepperman, 1999 ME 157, ¶ 4, 739 A.2d at 853
Yusem, 2001 ME 61, ¶ 8, 769 A.2d at 870
Assessor must consider all relevant factors, 36 M.R.S. § 701-A
UAH-Hydro
at 150, 151 (emphasizing that value arises from “presently possible” land use, its “current use,” and its “legally permissible” use)
But under 36 M.R.S. § 701-A, an assessor need not apply each listed factor but may determine which of them applies, and need not assign
equal weight to them
Glenridge Development Co., 662 A.2d at 932
Pepperman, 1999 ME 157, ¶ 4, 739 A.2d at 853
Yusem, 2001 ME 61, ¶ 11, 769 A.2d at 871
Auction or foreclosure sale is not the measure of true market value; it is less
Spear, 125
McCullough, 687 A.2d at 631
A sale of stock of a close corporation may well not be equivalent to a public sale
Shawmut Inn, 428 A.2d at 395
Wesson, 667 A.2d at 599 n.5
Weekley, 676 A.2d at 934; 935-36 (dissenting op.)
Harwood, 2000 ME 213, ¶ 19, 763 A.2d at 120
Asking price, when not obtained, may be disregarded as evidence of value
Wesson, 667 A.2d at 599 n.5
Harwood, 2000 ME 213, ¶ 19, 763 A.2d at 120
Use of similar factors, such as how long property had been on the market, what other offers had been received, difficulties seller had in obtaining offers, etc.
Weekley, 676 A.2d at 934
Harwood, 2000 ME 213, ¶ 19, 763 A.2d at 120
Actual sales of other property may bear upon value of property in question
Penobscot Chemical Fibre Co. I, 99
Shawmut Inn, 428 A.2d at 395 (reliance on recent sale)
Weekley, 676 A.2d at 933-34
Adams, 1999 ME 49, ¶ 21, 727 A.2d at 350-51
Harwood, 2000 ME 213, ¶¶ 11-22, 763 A.2d at 118-21
Board of assessment review, in its discretion, can properly ignore sales of land after April 1st of the year in question
Harwood, 2000 ME 213, ¶ 18, 763 A.2d at 120
Valuation in another year is not admissible on value of property in year in question
Penobscot Chemical Fibre Co. I, 99
Use of sales ratio analysis
Weekley, 676 A.2d at 933; 935 n.1 (dissenting op.)
Assessors are to recognize the value of property over a measurably stable time, not the temporary and extraordinary, fleeting or speculative
Alfred J. Sweet, 134
Frank, 329 A.2d at 173
Violent fluctuations in municipal revenues are not desirable; stability of revenue is important and should be considered
Alfred J. Sweet, 134
Frank, 329 A.2d at 175
But cannot so control as to ignore constitutional requirement of just value
Consider effect of federal regulations—effecting a mortgage subsidy (an intangible) to a low income housing project—governing property
Glenridge Development Co., 662 A.2d at 931
Consider value of purchase power agreement (an intangible) when inextricably intertwined with a tangible asset, a hydroelectric facility
UAH-Hydro
at 152-53
Mathematical precision or exactitude, perfection, or absolute equality in valuation is impossible; uniformity can be only approximated; some guesswork is involved
Augusta Bank, 36
Penobscot Chemical Fibre Co. I, 99
Shawmut Mfg. Co., 123
Cumberland County Power & Light Co., 125
at 595
Alfred J. Sweet, 134
Sears, Roebuck & Co., 150
Kittery Electric Light Co. I, 219 A.2d at 734, 739
Frank, 329 A.2d at 173
Drebelbis, 520 A.2d at 710
Experts are not usually in agreement; valuation is not so precise
Sears, Roebuck & Co., 150
Kittery Electric Light Co. I, 219 A.2d at 743
Frank, 329 A.2d at 171
All appraisal methods are imperfect and involve judgment
Penobscot Chemical Fibre Co. I, 99
Thus, perfect relief should not be anticipated; practical justice should be attained; taxation must be practical and bring results
Cressey II, 76
Sears, Roebuck & Co., 150
Dodge, 151
Kittery Electric Light Co. I, 219 A.2d at 741
Property need not be assessed at full value, but if assessors use a percentage of true value (and it makes no difference what they use), then they must do so uniformly/with equality
Sears, Roebuck & Co., 150
Kittery Electric Light Co. I, 219 A.2d at 734, 739
Value is usually proved by the opinion of the owner, opinions of experts, and by price of sales of similar properties in the neighborhood
Sears, Roebuck & Co., 150
But value need not be presented only through expert testimony
Waterville Homes, 655 A.2d at 367 n.1
Assessors need not be bound by expert appraisals
Drebelbis, 520 A.2d at 710
Board of assessors can accept part of a witness’ evidence of value and reject other parts of such evidence, and reject it all based on flaws in part of the testimony
Harwood, 2000 ME 213, ¶¶ 20-21, 763 A.2d at 120-21
Northeast Empire Ltd. Partnership #2, 2003 ME 28, ¶¶ 15-16,
818 A.2d at 1025-26
Assessors are not always people of special training or expertise; they may be semi-skilled, and after all exercise judgment differently and imperfectly
Penobscot Chemical Fibre Co. I, 99
Cumberland County Power & Light Co., 125
at 595
Sears, Roebuck & Co., 150
Dodge, 151
Frank, 329 A.2d at 171
Shawmut Inn, 428 A.2d at 390-91
Goldstein, 1998 ME 261, ¶ 7, 721 A.2d at 181-82
Assessors’ practical methods are much more valuable than, and as likely to be correct as, theoretical contentions of experts
Sears, Roebuck & Co., 150
Things put in a colloquial or unstudied manner often state meaning more vividly and forcefully than literal statements. Plain common sense
Shawmut Mfg. Co., 123
Assessors are said to have special knowledge of local conditions, better judgment of values, and are in the best position to evaluate value and obsolescence (but still may fail)
Whitmore, 79
Penobscot Chemical Fibre Co. I, 99
Cumberland County Power & Light Co., 125
131 A.2d at 595
Shawmut Inn, 428 A.2d at 394
Assessors properly relied on information from professional appraisers, State Tax Assessors Office, their own knowledge, and comparables
Camps Newfound/
They may rely on others and delegate measuring and pricing, while retaining ultimate authority
Frank, 329 A.2d at 176
Shawmut Inn, 428 A.2d at 392
Assessors must keep themselves informed of the methods used by professionals they hire
Shawmut Inn, 428 A.2d at 393
State has undertaken to train assessors and eliminate
nonexpert valuation, so as to alleviate assessment inequality, 36 M.R.S. § 301 et seq.
Shawmut Inn, 428 A.2d at 391 n.5
The Legislature has established minimum assessing standards, 36 M.R.S. § 327, but has not set forth the methods local assessors may use
Shawmut Inn, 428 A.2d 389-90
IBM Credit Corp., 665 A.2d at 662-63
Wesson, 667 A.2d at 598
Local assessors have considerable leeway or flexibility in choosing the method or combinations of methods to achieve just valuations
Shawmut Inn, 428 A.2d at 390
Central Maine Power Co., 649 A.2d at 324
Wesson, 667 A.2d at 598
J & N Sanford Trust, 1997 ME 97, ¶ 14, 694 A.2d at 459
Opinion of the Justices, 2004 ME 54, ¶ 16 & n.7, 850 A.2d at
1150 & n.7
Record supported methodology of board of assessment review
Harwood, 2000 ME 213, ¶¶ 4, 16, 17, 763 A.2d at 117, 119-20
Remedy for burden of too-heavy taxes lies not with courts; it is only when one bears a disproportionate share that he has a case in court; however, assessment substantially in excess of true value give rise to a presumption of inequality
Cumberland County Power & Light Co., 125
A. at 595
Alfred J. Sweet, 134
Gaston, 150
Overvaluation means vis
à vis true value only, not vis à vis other
property by adjusting the valuation of those properties
Penobscot Chemical Fibre Co. I, 99
85-86
Shawmut Mfg. Co., 123
Swazey, 132
So evidence showing merely disproportionate valuation is not admissible
Penobscot Chemical Fibre Co. I, 99
If appraisal is uniformly too high on properties, taxpayers need not show overvaluation in relation to other like properties
Spear, 125
And so if other properties are undervalued, petitioner, whose property is valued properly, still loses; otherwise there would be an undermining of every valuation in town
Penobscot Chemical Fibre Co. I, 99
If Board rejects petitioner’s evidence of value, and instead
makes its own
calculations, it remedies deficiencies in petitioner’s case and relieves petitioner of his burden to prove his case
Waterville Homes, 655 A.2d at 367
Harwood, 2000 ME 213, ¶ 10, 763 A.2d at 118
Burden of proof: Petitioner must establish a prima facie case
Shawmut Mfg. Co., 123
Alfred J. Sweet, 134
Burden of proof: Petitioner must “clearly” prove his case
Spear, 125
Burden of proof: Petitioner must prove his case “indisputably”
Shawmut Mfg. Co., 123
Burden of proof: Requiring petitioner to prove his case by a preponderance of the evidence misstates burden
Kittery Electric Light Co. I, 219 A.2d at 744
Burden of proof: Petitioner for abatement must show that the overvaluation was “manifestly wrong”
Shawmut
Mfg. Co., 123
Spear, 125
Alfred J. Sweet, 134
Sears, Roebuck & Co., 150
480
Frank, 329 A.2d at 174
Delta Chemicals, 438 A.2d at 484
Great
Lipski, 602 A.2d at 1172
Camps Newfound/
Central Maine Power Co., 649 A.2d at 323
Waterville Homes, 655 A.2d at 366-67
Glenridge Properties, 662 A.2d at 931
Muirgen Properties, 663 A.2d at 58
IBM Credit Corp, 665 A.2d at 664
Wesson, 676 A.2d at 5f98
Weekley, 676 A.2d at 934
McCullough, 687 A.2d at 630
Chase, 1998 ME 260, ¶ 12, 13, 721 A.2d at 640
Adams, 1999 ME 49, ¶ 13, 727 A.2d at 349
Stewart, 2000 ME 157, ¶ 9, 757 A.2d at 776 (dictum)
Harwood, 2000 ME 213, ¶¶ 7, 8, 763 A.2d at 117
Yusem, 2001 ME 61, ¶¶ 8, 15, 769 A.2d at 870, 872
Northeast Empire Ltd. Partnership #2, 2003 ME 28, ¶ 7, 818
A.2d at 1024
Ram’s Head Partners, 2003 ME 131, ¶ 9, 834 A.2d at 919
UAH-Hydro
It is not enough for a taxpayer, to meet its burden, to show flaws in the assessor’s methodology; taxpayer must further demonstrate affirmatively how those flaws would have resulted in overvaluation or discrimination
Glenridge Development Co., 662 A.2d at 931-32
Yusem, 2001 ME 61, ¶¶ 11, 13-15, 769 A.2d at 871, 872
Northeast Empire Ltd. Partnership #2, 2003 ME 28, ¶ 7, 818
A.2d at 1024
Impeachment of the assessment is not enough to show it was manifestly wrong; the petitioner also must affirmatively demonstrate, by credible evidence, the just value of the property; without such the Board has no
basis to compare local assessment and petitioner’s version of just value
Waterville Homes, 655 A.2d at 366-67
Glenridge Development Co., 662 A.2d at 931-32
Wesson, 667 A.2d at 599
Adams, 1999 ME 49, ¶ 22, 727 A.2d at 351
Harwood, 2000 ME 213, ¶ 9, 763 A.2d at 118
Yusem, 2001 ME 61, ¶¶ 8, 13-15, 769 A.2d at 870, 871-72
Northeast Empire Ltd. Partnership #2, 2003 ME 28, ¶ 8,
818 A.2d at 1024
Town of Bristol Taxpayers’ Ass’n, 2008 ME 159, ¶ 3 n.1,
957 A.2d at 978 n.1
A taxpayer need not convince the Board of the ultimate accuracy of its proposed valuation, but its proposal must be sufficiently credible to convince the Board that the property is substantially overvalued, or else the Board need not undertake its own independent determination of value
Northeast Empire Ltd. Partnership #2, 2003 ME 28, ¶ 8, 818
A.2d at 1024
Excess valuation requires a comparison between the local assessment and the version of value that the petitioner for abatement contends is just
Delta Chemicals, 438 A.2d at 484
Waterville Homes, 655 A.2d at 367
Harwood, 2000 ME 213, ¶ 14, 763 A.2d at 119
Board must make an independent determination of value by an accepted method, and cannot categorically refuse to consider a party’s analysis;
otherwise, the Board’s valuation is arbitrary and unreasonable
Quoddy Realty Corp., 1998 ME 14, ¶ 5, 704 A.2d at 408-09
Northeast Empire Ltd. Partnership #2, 2003 ME 28, ¶¶ 14-17,
818 A.2d at 1025-26
There is a presumption of validity and good faith to the assessors’ valuation, and it is the burden of the owner/taxpayer (the party seeking the abatement) to show overvaluation or discrimination—that is, an assessment not in conformity with law
Whitmore, 79
Penobscot Chemical Fibre Co. I, 99
85, 86
Shawmut Mfg. Co., 123
Cumberland County Power & Light Co., 125
at 595
Alfred J. Sweet, 134
Sears, Roebuck & Co., 150
479
Kittery Electric Light Co. I, 219 A.2d at 734-35, 744
Frank, 329 A.2d at 171, 174
Farrelly, 407 A.2d at 306
Shawmut Inn, 428 A.2d at 392, 393
Delta Chemicals, 438 A.2d at 484
Lipski, 602 A.2d at 1172
Camps Newfound/
Waterville Homes, 655 A.2d at 366-67
Glenridge Development Co., 662 A.2d at 931
Muirgen Properties, 663 A.2d at 58
IBM Credit Corp., 665 A.2d at 664
Chase 1998 ME 260, ¶ 13, 721 A.2d at 640
Adams, 1999 ME 49, ¶ 13, 727 A.2d at 349
Stewart, 2000 ME 157, ¶ 9, 757 A.2d at 776 (dictum)
Harwood, 2000 ME 213, ¶ 7, 763 A.2d at 117
Yusem, 2001 ME 61, ¶ 8, 769 A.2d at 869-70
Northeast Empire Ltd. Partnership #2, 2003 ME 28, ¶ 7, 818
A.2d at 1023-24
Ram’s Head Partners, 2003 ME 131, ¶ 9, 834 A.2d at 919
If the assessment is so unreasonable that (1) property is substantially overvalued, and an injustice results, or (2) there has been an unjust discrimination, or (3) some fraud, dishonesty, or illegality, courts will give relief; if not, assessors’ judgment will not be overturned
Shawmut Mfg. Co., 123
first two possibilities as grounds for relief, but referring also to the third)
Sears, Roebuck & Co., 150
Kittery Electric Light Co. I, 219 A.2d at 734, 739, 740
Frank, 329 A.2d at 171-72
Shawmut Inn, 428 A.2d at 393
Delta Chemicals, 438 A.2d at 484
Moser, 553 A.2d 1249
Camps Newfound/
Kokernak, 612 A.2d at 872
Glenridge Development Co., 662 A.2d at 931
Muirgen Properties, 663 A.2d at 58
Wesson, 667 A.2d at 598
McCullough, 687 A.2d at 630
Chase, 1998 ME 260, ¶ 12, 721 A.2d at 640
Adams, 1999 ME 49, ¶ 13, 727 A.2d at 349
Harwood, 2000 ME 213, ¶ 8 n.3, 763 A.2d at 117 n.3
Yusem, 2001 ME 61, ¶ 9, 769 A.2d at 870
Northeast Empire Ltd. Partnership #2, 2003 ME 28, ¶ 7, 818
A.2d at 1024
Ram’s Head Partners, 2003 ME 131, ¶ 9, 834 A.2d at 919
UAH-Hydro
Town of
at 979
If the taxpayer has shown overcome the presumption of validity of an assessment and, so, that the assessment is manifestly wrong, the Board must reach its own determination of just value and grant such an abate-
ment as it thinks proper, 36 M.R.S. §§ 843(1-A), 844(2)
Quoddy Realty Corp.,1998 ME 14, ¶ 11, 704 A.2d at 410
Adams, 1999 ME 49, ¶¶ 24-25 727 A.2d at 351
Harwood, 2000 ME 213, ¶ 7, 763 A.2d at 117
Petitioner must show overvaluation was “manifestly unjust” or unreasonable in light of the circumstances
Glenridge Development Co., 662 A.2d at 929
Yusem, 2001 ME 61, ¶ 9, 769 A.2d at 870
Or that unjust discrimination exists
Shawmut Mfg. Co., 123
Sears, Roebuck & Co., 150
480
Frank, 329 A.2d at 174
Farrelly, 407 A.2d at 306-07
Adams, 1999 ME 49, ¶ 22, 727 A.2d at 351
Yusem, 2001 ME 61, ¶ 9, 769 A.2d at 870
Ram’s Head Partners, 2003 ME 131, ¶ 9, 834 A.2d at 919
Unjust discrimination defined
Ram’s Head Partners, 2003 ME 131, ¶ 13, 834 A.2d at 920
(“Most property tax discrimination cases involve a defined methodology that results in unequal treatment”)
Delogu II, 2004 ME 18, ¶ 12, 843 A.2d at 35 (occurs “when a
municipal assessment system ‘necessarily results in unequal apportionment’”; there is “underassessment or overassessment of one set of similarly situated properties”; or “when selected properties receive an assessment reduction that does not benefit similarly valued property”)
Opinion of the Justices, 2004 ME 54, ¶ 17, 850 A.2d at 1151
(“The under or over assessment of one set of similarly
situated properties will support a finding of unjust discrimination”)
Roberts, 2004 ME 132, ¶ 4, 861 A.2d at 618 (if valuation is
consistent with similar properties there is no
constitutional harm)
UAH-Hydro
(quoting Ram’s Head Partners)
Town of
at 979 (citing Ram’s Head Partners for proposition that
“only similarly situated properties must receive approximately equivalent tax treatment”)
Discrimination means a distinctly higher valuation, arrived at intentionally or with systematic purpose, which must be undone to place the complain-ant on a plane of equality with others in his class—that is, it violates the essential principle of practical uniformity
Shawmut Mfg Co., 123
Cumberland County Power & Light Co., 125
131 A. at 595
Gaston, 150
Kittery Electric Light Co. I, 219 A.2d at 739-40
Frank, 329 A.2d at 173
Shawmut Inn, 428 A.2d at 394
Ram’s Head Partners, 2003 ME 131, ¶ 11, 834 A.2d at 919
This has been considered a matter of due process
Shawmut Mfg. Co., 123
And equal protection
Shawmut Mfg. Co., 123
Ram’s Head Partners, 2003 ME 131, ¶ 10, 834 A.2d at 919
Only similarly situated properties must receive approximately equivalent tax treatment
Town of Bristol Taxpayers’ Ass’n, 2008 ME 159, ¶ 11 & n.6,
957 A.2d at 979 & n.6
Discrimination can be proved by showing similarly situated property is assessed at drastically lower valuation; there are no distinctions between the properties that justify the disparity; and the municipality’s rationale for the lower valuation is unfounded or arbitrary
Ram’s Head Partners, 2003 ME 131, ¶ 12, 834 A.2d at 920
The
Town of Bristol Taxpayers’ Ass’n, 2008 ME 159, ¶ 11 n.6,
957 A.2d at 979 n.6 (but no such showing was made
here)
To establish a claim of discrimination, one must demonstrate that his property as a whole, not simply a component part, has been valued differently than comparable properties
Roberts, 2004 ME 132, ¶ 4, 861 A.2d at 618
Petitioner must show either (1) the property was assessed at more than its just value or (2) the property was assessed at a higher rate than was the general mass of other taxable property
Shawmut Mfg. Co., 123
Kittery Electric Light Co. I, 219 A.2d at 744
Farrelly, 407 A.2d at 306
Shawmut Inn, 428 A.2d at 389
Chase, 1998 ME 260, ¶ 11, 15, 721 A.2d at 640
More
recently the Court has rejected the requirement that any
given
property had to be treated similarly with the general mass of taxable property
Ram’s Head Partners, 2003 ME 131, ¶ 10,
834 A.2d at 919
Town of
A.2d at 979-80
Property asserted to have been assessed discriminatorily is not to be compared to the general mass of property, but to property similarly situated
Moser, 553 A.2d at 1250
Ram’s Head Partners, 2003 ME 131, ¶¶ 10-11, 14, 834 A.2d at 919, 920
Where a hydroelectric facility is a qualifying facility under the Public Utilities Regulatory Policies Act of 1978, thus allowing it to have a purchase power agreement (PPA) with a utility and to be exempt from utility regulations, the Board correctly determined that the PPA was inextricably entwined with it physical plant so that the PPA was properly considered a part of its value, though the PPA itself was intangible property, which did not discriminate against the facility
UAH-Hydro
at 151-52
That is, unjust discrimination can exist in an unjustly discriminatory formula or methodology that results in unequal valuations
Adams, 1999 ME 49, ¶ 22, 727 A.2d at 351
Ram’s Head Partners, 2003 ME 131, ¶ 13, 834 A.2d at 920
In alleging unjust discrimination, taxpayers need not show values of their individual properties but can rely on an appraiser’s analysis of neighborhood properties or assessment by municipality
Adams, 1999 ME 49, ¶ 22, 727 A.2d at 351
Ram’s Head Partners, 2003 ME 131, ¶ 12, 834 A.2d at 919-20
Remedy for unjust discrimination in valuation is abatement
Shawmut Mfg. Co., 123
Adams, 1999 ME 49, ¶¶ 24-25, 727 A.2d at 351-52
Ram’s Head Partners, 2003 ME 131, ¶ 15, 834 A.2d at 920-21
It has been said that in a discrimination case, the system used by the assessors must have a necessary potential for discrimination
Farrelly, 407 A.2d at 307
But since any approach has the potential for discrimination—that is, unjust apportionment—Farrelly is clarified to mean that the assessors’
system necessarily will have such a result
Moser, 553 A.2d at 1250
Wesson, 667 A.2d at 598
Discrimination exists only where petitioners show that the assessors’ system necessarily resulted in unequal apportionment
Adams, 1999 ME 49, ¶ 14, 727 A.2d at 349
Ram’s Head Partners, 2003 ME 131, ¶ 10, 834 A.2d at 919
Mere errors of judgment by assessors do not prove discrimination
Gaston, 150
Kittery Electric Light Co. I, 219 A.2d at 740
Discrimination does not exist in sporadic differences in valuations
Kittery Electric Light Co. I, 219 A.2d at 740
An aggrieved taxpayer must show more than some isolated, specific, or sporadic instances of lower valuation or spot disparity to others; such do not show invidious discrimination, but mere errors
Penobscot Chemical Fibre Co. I, 99
Kittery Electric Light Co. I, 219 A.2d at 740-41
Ram’s Head Partners, 2003 ME 131, ¶ 11, 834 A.2d at 919
It is not sufficient to show merely an error; it is only when there is systematic purpose by the assessors to cast a disproportionate share
on a taxpayer, or class of taxpayers, that courts will intervene
Penobscot Chemical Fibre Co. I, 99
Shawmut Mfg. Co., 123
Alfred J. Sweet, 134
Gaston, 150
Kittery Electric Light Co. I, 219 A.2d at 739
Another statement of this: If assessors have been honest with themselves, fair with the public, and true to their oaths, their judgment controls
Sears, Roebuck & Co., 150
Kittery Electric Light Co. I, 219 A.2d at 734
Town’s failure to assess certain properties of others cannot make assessment of property in question illegal; that is, undervaluation of other properties is not a defense to over-taxation of one’s own property
Maine Water Co., 90
Blair, 104
Swazey, 132
Tozier II, 136
Look for whether there has occurred a failure to exercise a fair and impartial judgment, or a conscious resort to arbitrary methods, different from those used to assess other like properties, thereby imposing an unequal burden
Farrelly, 407 A.2d at 307
Shawmut Inn, 428 A.2d at 393
Discrimination does not require actual fraud
Spear, 125 Me. at 29, 130 A. at 508
Kittery Electric Light Co. I, 219 A.2d at 740
But fraudulent action by assessors may be corrected by a court
Whitmore, 79 Me. at 186, 9 A. at 120
Shawmut Mfg. Co., 123 Me. at 128, 122 A. at 52
An illegal tax is one unauthorized by law; illegality involves a board’s acting beyond its authority
Herriman, 43 Me. at 499 (assessors assessing one who is not
an
inhabitant of the town have committed an illegality)
Stockman, 147 Me. at 380, 87 A.2d at 683
Goldstein, 1998 ME 261, ¶ 7, 721 A.2d at 181 (misclassifica-
Tion of property that results in an assessment that is too high or too low is a classic error in valuation); ¶ 8, 621 A.2d at 182 (errors in calculating value are not illegalities because they do not affect the taxability of the property); ¶ 10 (mistakes in the application of the methods used to reach a valuation are not illegalities)
Yusem, 2001 ME 61, ¶ 14 n.12, 769 A.2d at 872 n.12
See UAH-Hydro Kennebec, LP, 2007 ME 36, ¶ 17, 921 A.2d
at 152 (taxpayer claimed town “exceeded the bounds of its taxing authority”); ¶18 (illegality occurs “when there is an ‘impropriety in the manner in which the property was assessed’ . . . , but not when the assessor has made errors in value calculation”)
Intangible property that is inextricably entwined with a tangible asset may be considered in determining just value of the tangible property
Glenridge Development Co., 662 A.2d at 931
UAH-Hydro Kennebec, LP, 2007 ME 36, ¶ 19, 921 A.2d at 152
Methods of appraising value:
(1) sales comparison, or market data
(2) income, or capitalization
(3) cost, or reproduction, less depreciation
Alfred J. Sweet, 134 Me. at 32, 180 A. at 804
Kittery Electric Light Co. I, 219 A.2d at 737
Shawmut Inn, 428 A.2d at 390
South Portland Associates, 550 A.2d at 366-67
Northeast Empire Ltd. Partnership #2, 2003 ME 28, ¶ 6, 818
A.2d at 1023
Opinion of the Justices, 2004 ME 54, ¶ 16 n.7, 850 A.2d at
1150 n.7
These are only devices to determine fair value
Frank, 329 A.2d at 175-76
The objective of all is the same: to determine just or market value
Harwood, 489 A.2d at 508
South Portland Associates, 550 A.2d at 369
Quoddy Realty Corp., 1998 ME 14, ¶ 6, 704 A.2d at 409
And in the end it is a question of fact whether any formula or methodology determines just value
Great Northern Nekoosa Corp., 522 A.2d at 1317
Theoretically, all three methods may be employed, but often only one or two are useful in a given case
Shawmut Inn, 428 A.2d at 390
It is error for assessors to feel compelled to use only one method of appraisal
Quoddy Realty Corp., 1998 ME 14, ¶ 6, 704 A.2d at 409
An inherently discriminatory method cannot produce a just result,
even if by chance the method arrives at a just result
Shawmut Inn, 428 A.2d at 393 n.8
J & N Sanford Trust, 1997 ME 97, ¶ 14, 694 A.2d at 460
A municipality is not required to use the identical appraisal method on all properties
South Portland Associates, 550 A.2d at 369
Quoddy Realty Corp., 1998 ME 14, ¶ 6, 704 A.2d at 409
The use of any single approach or combination of approaches that leads appraisers astray will not be accepted
Frank, 329 A.2d at 175
Shawmut Inn, 428 A.2d at 391
South Portland Associates, 550 A.2d at 367
Reasons for this: (1) may result in the highest valuation; (2) especially where assessors have relied on professionals, taxpayers can expect more, not less, sophisticated methods to be used; (3) as assessors become more highly skilled, through certification, courts may insist on higher standards
Shawmut Inn, 428 A.2d at 391
Appraisers are to “correlate” or “reconcile”—that is, calculate by two or more methods and then weigh the factors used in arriving at each value to determine which best reflect market value
Shawmut Inn, 428 A.2d at 391-92 & n.6
South Portland Associates, 550 A.2d at 367
Muirgen Properties, 665 A.2d at 57
Quoddy Realty Corp., 1998 ME 14, ¶ 10, 704 A.2d at 410
But this does not mean that appraisers can merely select any two methods and disregard a third that is demonstrably superior
South Portland Associates, 550 A.2d at 367
If assessors hire appraisers, assessors will be bound by
their methods if assessors accept their conclusions in toto
Shawmut Inn, 428 A.2d at 392
Assessors must be familiar with appraisers’ methods and use their own knowledge as a check
Shwamut Inn, 428 A.2d at 393
Highest and best use
Central Maine Power Co., 128 Me. at 494, 148 A. at 802 (owner
cannot lessen tax by using it in a manner that produces
little or no return, or fix value of land by the use to which he puts it; tax liability is not based on present use, but on its most profitable improvements and capacity)
UAH-Hydro Kennebec, LP, 2007 ME 36, ¶¶ 11, 16, 921 A.2d
at 150, 151 (citing 36 M.R.S. § 701-A)
Method utilized—
Cost less depreciation, or replacement (recommended for mass valuations):
Sears, Roebuck & Co., 150 Me. at 186, 107 A.2d at 477
Kittery Electric Light Co. I, 219 A.2d at 742
Maine Consolidated Power Co., 219 A.2d at 750 (not the only
method to value a utility)
Frank, 329 A.2d at 174-76
Shawmut Inn, 428 A.2d at 389, 390 n.4,
392 (not per se
unsuitable for valuing commercial property; best suited
method for mass revaluations)
Great Northern Nekoosa Corp., 522 A.2d at 1317
South Portland Associates, 550 A.2d at 367 (cost method
described; use rejected on facts here)
Central Maine Power Co., 649 A.2d at 325 (need not be the
same as “net book value” and may greatly exceed such, by a “residual value,” because the life of a facility may greatly exceed the time during which a utility can depreciate its property)
Glenridge Development Co., 662 A.2d at 930 n.4 (best suited
method for mass revaluations); 932 (use of cost method, with mere substantiation with income and market approaches proper)
Muirgen Properties, 663 A.2d at 57
Quoddy Realty Corp., 1998 ME 14, ¶¶ 6, 10, 704 A.2d at 409, 410
Northeast Empire Ltd. Partnership #2, 2003 ME 28, ¶ 6 n.2,
818 A.2d at 1023 n.2 (cost method described); ¶ 11,
818 A.2d at 1024-25 (Board rejected taxpayer’s expert’s opinion as inadequately explained and devised to match income approach analysis)
UAH-Hydro Kennebec, LP, 2007 ME 36, ¶ 10, 921 A.2d at 150
Income, or capitalization:
Wheeler, 88 Me. at 181, 33 A. at 985 (stock of a corporation
not meeting its operating expenses may nonetheless have substantial value because of the prospects for increased business and future earning capacity
Frank, 329 A.2d at 174 (use rejected on facts here)
Great Northern Nekoosa Corp., 522 A.2d at 1317
(capitalization of cost savings approach need not have been adjusted by inclusion of income taxes; this is a question of methodology)
South Portland Associates, 550 A.2d at 368 (how to use
explained at length)
Northeast Empire Ltd. Partnership #2, 2003 ME 28, ¶ 12,
818 A.2d at 1025 (Board rejected taxpayer’s expert’s opinion as inadequately substantiated, and it was not clear how property taxes were not considered)
Sales comparison, or market data:
South Portland Associates, 550 A.2d at 367-68 (use rejected
on facts here)
Harwood, 2000 ME 213, ¶¶ 11-15, 763 A.2d at 118-19 (use
of one other sale was proper)
Northeast Empire Ltd. Partnership #2, 2003 ME 28, ¶ 13, 818
A.2d at 1025 (Board rejected taxpayer’s expert’s
opinion as flawed by including site remediation expense when it appeared plant was going to continue
to operate, and because quality of comparables was questionable and plant had not been offered on the open market)
Cost of the property when first acquired is not synonymous with reasonable value; sale price is not necessarily true value; it has been accorded varying evidentiary weight, depending on petitioner’s ability to show that it was indicative of the price a willing buyer would pay in a free and open market
Spear, 125 Me. at 30, 130 A. at 508
Sears, Roebuck & Co., 150 Me. at 188-89, 107 A.2d at 479
Kittery Electric Light Co. I, 219 A.2d at 736
Shawmut Inn, 428 A.2d at 394, 395
Wesson, 667 A.2d at 599 n.5
Weekley, 676 A.2d at 934
McCullough, 687 A.2d at 631
Quoddy Realty Corp., 1998 ME 14, ¶ 9, 704 A.2d at 409
Lease fee value is determined by capitalizing the income produced by the actual leases on the property
J & N Sanford Trust, 1997 ME 97, ¶ 3, 694 A.2d at 457
Fee simple value is determined by capitalizing the income that would be produced by market rents
J & N Sanford Trust, 1997 ME 97, ¶ 3, 694 A.2d at 457-58
Use of lease fee value alone violates Maine’s Constitution because it imposes an unequal tax on similarly situated taxpayers
J & N Sanford Trust, 1997 ME 97, ¶¶ 12, 16, 17, 694 A.2d at 459, 460, 461
When lease fee value and fee simple value differ, rely on the latter to determine abatement
J & N Sanford Trust, 1997 ME 97, ¶17, 694 A.2d at 461
(otherwise poor management is rewarded)
The principle of uniformity of taxation precludes the use of an appraisal method that will vary with managerial successes or failure
UAH-Hydro Kennebec, LP, 2007 ME 36, ¶ 13, 921 A.2d at 151
Running water (like air) is not property and is not taxable; so water power, as such, is not taxable; but once applied to a mill it becomes part of the value of the property (including the enhancing value of a “mill privilege”) subject to taxation, even if submerged
Union Water Power Co. I, 90 Me. at 64-65, 37 A. at 333
Saco Water Power Co., 98 Me. at 297-98, 56 A. at 914-15
Penobscot Chemical Fibre Co. I, 99 Me. at 272, 59 A. at 86
Inhabitants of Whiting, 121 Me. at 127, 115 A. at 900
Shawmut Mfg. Co., 123 Me. at 126, 122 A. at 51
Central Maine Power Co., 128 Me. at 488-95, 148 A. at
799-802
Functional obsolescence
J & N Sanford Trust, 1997 ME 97, ¶¶ 2, 694 A.2d at 457
Pepperman, 1999 ME 157, ¶¶ 3, 4 & nn.1, 2, 739 A.2d at
852-53 & nn.1, 2
There is no hard and fast rule by which to compute depreciation; it cannot be proved with mathematical certainty, and must remain in the realm of opinion, estimate, and judgment
Kittery Electric Light Co. I, 219 A.2d at 738
Shawmut Inn, 428 A.2d at 394
Because an aggrieved taxpayer must show more than some isolated instances of lower valuation, evidence of an overall prevailing ratio within a tax district is admissible, if subject to cross-examination
Kittery Electric Light Co. I, 219 A.2d at 741
Town-wide revaluations are perhaps the best method of maintaining equal apportionment of tax burden
Moser, 553 A.2d at 1250
But assessors are not precluded from reassessing in the time between town-wide revaluations
Moser, 553 A.2d at 1250
Basis for valuation for rate-making purposes need not (but may) be the same as for tax purposes, and assessors would abdicate their duties to be bound by rate-making authorities
Kittery Electric Light Co. I, 219 A.2d at 735, 737
Maine Consolidated Power Co., 219 A.2d at 751
Central Maine Power Co., 649 A.2d at 324
Although in the long run these two different valuations should approximate each other
Kittery Electric Light Co. I, 219 A.2d at 735
Assessors do not have the same freedom to adjust value as do rate-makers
Kittery Electric Light Co. I, 219 A.2d at 736
The reasonably foreseeable prospects of rate-maker approval of a sale or rate increase should be considered in assessing fair market value
Kittery Electric Light Co. I, 219 A.2d at 736
Central Maine Power Co., 649 A.2d at 324-25
Public utilities are harder to value than houses, businesses, etc.
Kittery Electric Light Co. I, 219 A.2d at 736
The market value of a single purpose property, such as a public utility, must be determined by considering all factors that would influence an assumed buyer and seller in reaching a fair price in a fair market
Kittery Electric Light Co. I, 219 A.2d at 737
Utility’s regulated status is a factor to be considered is assessing its property, but is not automatically determinative of a facility’s value
Central Maine Power Co., 649 A.2d at 325
The reasonably foreseeable prospects of a rate-maker approving a sale or rate increase should be considered in assessing fair market value
Kittery Electric Light Co. I, 219 A.2d at 736
Central Maine Power Co., 649 A.2d at 324-25
Utility’s regulated status is a factor to be considered in assessing its property, but is not automatically determinative of facility’s value
Central Maine Power Co., 649 A.2d at 325
As regards the value of property of a regulated utility, the assessors’ views remain relevant
Central Maine Power Co., 649 A.2d at 325
There could be a sale above net book cost, depending on the true value of the assets, as distinguished from valuation for rate-making purposes
Kittery Electric Light Co. I, 219 A.2d at 737
Forestry land cases (Chase Law, 36 M.R.S. §§ 563, 564): petitioner must show tax creates incentive to abandon the land
P. H. Chadbourne & Co., 452 A.2d at 401-02 & n.2
V. Exemptions
From Taxation
There is no express constitutional provision for exemptions
Y.M.C.A of
Exemptions are legislative
Brewer Brick Co., 62
by general and uniform laws certain descriptions of property from taxation, and lay the burden of supporting government elsewhere”; “it is for the legislature to impose taxes and to exempt from taxation”)
Maine Central R.R. Co., 66
Hamlin, 86
Opinion of the Justices, 102
Waldo Lumber Co., 128
may exempt classes of property”)
In re Maine Central R.R. Co., 134
Opinion of the Justices, 141
MacDonald, 142
Greaves II, 143
Opinion of the Justices, 155
Green Acre Baha’i II, 159
Alpha
Camps Newfound/
Delogu II, 2004 ME 18, ¶ 25, 27, 843 A.2d at 39, 40
Wisdom of legislative scope of exemptions is not for courts to consider
Laughlin, 111
Inhabitants of Whiting, 121
Opinion of the Justices, 141
Greaves II, 143
Inhabitants of Boothbay, 148
Green Acre Baha’i II, 159
Lambert, 423 A.2d at 536
The authority of the Legislature to provide exemptions from taxation cannot be questioned
Opinion of the Justices, 102
Exemption from taxation is inherently intertwined with the power of taxation
Brewer Brick Co., 62
Delogu II, 2004 ME 18, ¶ 26, 843 A.2d at 39
Taxation is the rule, and exemption the exception
Portland, Saco & Portsmouth R.R. Co., 60
Rising Virtue Lodge, 73
Y.M.C.A. of
Millett, 121
Hinds I, 134
James, 136
MacDonald, 142
Green Acre Bahai I, 150
Dodge, 151
Green Acre Bahai II, 159
State Y.M.C.A., 295 A.2d at 441
Pentecostal Assembly of
Silverman, 451 A.2d at 105
Connecticut Bank & Trust Co., 477 A.2d at 271
Advanced Medical Research Foundation, 555 A.2d at 1041
Eagle Rental, 632 A.2d at 131
Episcopal
Marcotte Congregate Housing, 673 A.2d at 211
Humboldt Field Research Institute, 2011 ME 130, ¶ 7, ___ A.3d at ___
Statutes of exemption are to be strictly construed; so all doubts are weighed against exemption
Portland, Saco & Portsmouth R.R. Co., 60
Maine Central R.R. Co., 66
Rising Virtue Lodge, 73
Camden Village Corp., 77
Y.M.C.A. of
Sigma Alpha Epsilon Society, 105
Millett, 121
66-67
Hinds I, 134
James, 136
Dodge, 151
State Y.M.C.A., 295 A.2d at 441
Howard D. Johnson Co., 351 A.2d at 532
Nature Conservancy, 385 A.2d at 42
Pentecostal Assembly of
Silverman, 451 A.2d at 105
Connecticut Bank & Trust Co., 477 A.2d at 272
Episcopal
Humboldt Field Research Institute, 2011 ME 130, ¶ 3, ___ A.3d at ___
Why? Because exemptions conflict with the universal obligation to contribute to society through equal and impartial taxation
Rising Virtue Lodge, 73
Episcopal
The less some property is taxed, the more must be other property
Brewer Brick Co., 62
one man’s estate is exempted from taxation, to that same extent is there an imposition of the amount exempted upon the rest of the inhabitants”)
Rising Virtue Lodge, 73
Hamlin, 86
Green Acre Baha’i II, 159
Delogu II, 2004 ME 18, ¶¶ 18, 25, 843
A.2d at 38, 39
The Legislature may not delegate to municipalities the power to determine what classes of property are exempt
Brewer Brick Co., 62
Farnsworth Co. I, 62
Delogu II, 2004 ME 18, ¶¶ 23-28, 843 A.2d at 39-40
Municipalities are prohibited from taking unilateral actions to adopt exemptions
Milo Water Co. III, 133 Me. at 7, 173 A. at 153-54 (municipality cannot exempt water company from payment of taxes in return for services rendered, but may contract to pay water company annually a sum equivalent to taxes assessed)
Delogu II, 2004 ME 18, ¶ 15, 843 A.2d at 37
But whether a particular property qualified for a legislatively approved exemption is within municipal power
Delogu II, 2004 ME 18, ¶ 26 n.8, 843 A.2d at 40 n.8
A municipality may not tax inhabitants to make up for exemption from taxation, provided by commuting a toll, given to certain other inhabitants for use of property used under contract by the municipality
Bussey, 3
Only assessors can grant an exemption, not the municipality
U. S. Pegwood & Shank Co., 123
Dillon, 322 A.2d at 335
The theory behind exemptions is that the benefits derived by the public are of greater value than would be their tax contributions
MacDonald, 142
No question of constitutionality of tax exemption is raised by the Legislature financing a water and sewer system by bonds rather than taxation
Opinion of the Justices, 231 A.2d 431 (passim)
The Legislature can provide for exemption from taxation by charter of legislatively created corporation, which is a contract that cannot be impaired
Maine Central R.R. Co., 66
Conversely, the Legislature can provide for an exception to exemption from taxation by charter of legislatively created corporation
Passamaquoddy Water Dist., 1998 ME 94, ¶ 7, 710 A.2d at
899-900
The Legislature can exempt one corporation without exempting all similar corporations, on basis that the exempted corporation provides vastly greater benefits to the public than others
Portland Water Co., 67
Greaves II, 143
Conversely, the Legislature can except one corporation from tax exemption that other like corporations enjoy
Passamaquoddy Water Dist., 1998 ME 94, ¶ 13, 710 A.2d at
901
Legislatively created corporation is entitled to exemption only if it is able to do what the corporations previously composing it were required to do
Maine Central R.R. Co., 66
Motive to incorporate to seek exemption
Claim of subterfuge and device
Exemption begins as of property owner’s acquisition of property
Portland Water Co., 67
Town of
An exemption from taxation, while entitled to reasonable interpretation in accordance with its purpose, is not to be extended to situations not clearly within the scope of the statutory provision
Silverman, 451 A.2d at 105
Such strict construction must be reasonable construction, and does not mean that the narrowest possible meaning must be given to words descriptive of exemption
State Y.M.C.A., 295 A.2d at 442
Howard D. Johnson Co., 351 A.2d at 532
Alpha
Eagle Rental, 632 A.2d at 131
In a tax exemption case, the assessors are the proper adverse party (although many cases have ignored this)
Dillon, 322 A.2d at 334-35
Eldridge, 392 A.2d at 41 n.3
Connecticut Bank & Trust Co., 477 A.2d at 271 n.5
This is a jurisdictional requirement
Dillon, 322 A.2d at 334
Abatement proceeding is proper vehicle to raise claim of exemption
Portland Terminal Co., 129
See All
Maine Central R.R. Co., 588 A.2d at 292
Camps Newfound/
at 1112
Necessity for county commissioners (and boards of assessment review) to
make sufficient findings of fact re whether organization qualifies for a benevolent and charitable exemption
¶¶ 7-19, 769 A.2d at 837-41
Ram’s Head Partners, 2003 ME 131, ¶¶ 16-17, 834 A.2d at 921
Consider effect of federal regulations governing property
Marcotte Congregate Housing, 673 A.2d at 209
Inquiries that assessors are authorized to make under 36 M.R.S. § 706 should be concerned only with nonexempt property
Handyman Equipment Rental Co., 1999 ME 20, ¶ 10, 724
A.2d at 608
One exempt from taxation need not file list of property under 36 M.R.S.
§ 706 before seeking abatement of property claimed to be exempt
Depositors Trust Co., 295 A.2d at 30
Howard D. Johnson Co., 351 A.2d at 526-27
Madison Water Dist., 1998 ME 154, ¶ 5, 713 A.2d at 330
Handyman Equipment Rental Co., 1999 ME 20, ¶ 9, 724
A.2d at 608
“Property liable to taxation” in the fourth paragraph of 36 M.R.S. § 706
refers to property that is not exempt; exempt property is not liable to taxation while nonexempt property is liable to taxation
Depositors Trust Co., 295 A.2d at 30
Handyman Equipment Rental Co., 1999 ME 20, ¶ 10, 724
A.2d at 608
To qualify for exemption one must prove each of the necessary facts set forth in the applicable statute; if he proves eligibility, he is entitled to exemption; if he does not, he is not; whether or not assessors have recognized the exemption is not what controls
Stockman, 147
A claimant for exemption must show that money paid has been received by the municipality, not merely paid to the tax collector
Stockman, 147
Burden is on taxpayer to prove eligibility for exemption
Portland, Saco & Portsmouth R.R. Co., 60
MacDonald, 142
Stockman, 147
Green Acre Baha’i II, 159
Nature Conservancy, 385 A.2d at 42
769 A.2d at 837
Humboldt Field Research Institute, 2011 ME 130, ¶ 6, ___ A.3d at ___
Burden of proof: taxpayer always retains burden to prove eligibility for exemption
Humboldt Field Research Institute, 2011 ME 130, ¶ 8, ___ A.3d at ___
Burden of proof: one who has obtained an exemption is entitled to retain it year to year until it is denied by the assessors, at which point the taxpayer again must prove its eligibility for the exemption
Humboldt Field Research Institute, 2011 ME 130, ¶¶ 6-8,
___ A.3d at ___ (section 652(1))
Burden of proof: one claiming exemption must prove his entitlement beyond all doubt
Rising Virtue Lodge, 73
Burden of proof: one claiming exemption must bring his case unmistakably within the spirit and intent of the act creating the exemption
Rising Virtue Lodge, 73
Pentecostal Assembly of
Silverman, 451 A.2d at 105
Alpha
Advanced Medical Research Foundation, 555 A.2d at 1041
Poland Spring Health Institute, 649 A.2d at 1100
Episcopal
Credit Counseling Centers, 2003 ME 2, ¶¶ 10 n.3, 16, 17, 814 A.2d at 461 n.3, 463
Humboldt Field Research Institute, 2011 ME 130, ¶ 7, ___ A.3d at ___
Burden of proof: no error in applying preponderance of evidence
Poland Spring Health Institute, 649 A.2d at 1099-1100
Whether an organization qualifies for exemption is a mixed question of law and fact
785 A.2d at 345
Whether property qualifies for exemption—
30 M.R.S. § 4262—Revenue Producing Municipal Facilities:
Town of East Millinocket, 486 A.2d 739 (passim)(municipal
water works—yes; three justices vote to resolve case under 30 M.R.S. § 4262, and three under 36 M.R.S.
§ 651(1)(E))
36 M.R.S. § 561—Abandoned Railroads:
Maine Central R.R. Co., 588 A.2d at 293-94 (abandonment of
railroad right-of-way exemption depends on Interstate Commerce Commission certificate of abandonment)
36 M.R.S. § 651(1)(D), (E)—Public property:
Maine Central R.R. Co., 66
corporation not required to
perform acts that qualified predecessor corporations to be exempt—no)
Portland Water Co., 67
company appropriated to use as a public utility—yes)
Camden Village Corp., 77
(public buildings when used for public purposes—yes)
Rockland Water Co., 82
conduits, etc.—no)
Maine Water Co., 90
Sigma Alpha Epsilon Society, 105
21-22 (although University of Maine is a public corporation, and owned the land on which fraternity house was located, building used as chapter house is not exempt)
Hayford Block Co., 120
used by the National Guard for military purposes)
Inhabitants of Whiting, 121
(poles and transmission lines of town—yes; land with mill privilege—no)
Greaves I, 140
corporation providing electricity to neighboring towns—no)
City of
(reservoir formed by river dam and land under dam—
no)
Greaves II, 143
corporation given legislative exemption and providing electricity to neighboring town by legislative authority—yes)
Inhabitants of Boothbay, 148 Me at 42-43, 88 A.2d at 825-26
(utility acting as municipal corporation and providing service to neighboring town—yes)
Dodge, 151
buildings—yes)
buildings—yes)
Howard D. Johnson Co., 351 A.2d at 530-31 (operation of
restaurant by lessee on public land, by contract with state agency, is a public use)
Exxon Corp., 351 A.2d at 537 n.5 (Howard D. Johnson would
control if Court reached the merits)
Town of East Millinocket, 486 A.2d at 742 (concurring
opinion of three of six sitting justices would resolve case under section 651(1)(E))
Town of
dam, reservoir used to generate power or light, power-
house, generator, and related equipment—yes)
Passamaquoddy Water Dist., 1998 ME 94, ¶ 7, 710 A.2d at
899-900 (property of water district whose charter created an exception from exemption—no)
Madison Water Dist., 1998 ME 154, ¶¶ 6, 8, 713 A.2d at 330
(modern water treatment facilities under 1911 statute, now subsections (D) and (E), to be read as applicable today—yes)
Portland Water Dist., 1999 ME 161, ¶¶ 10-13, 740 A.2d at
567-68 (same; water district that by legislative authority provides service outside its territorial boundaries—yes)
36 M.R.S. § 652(1)(A)—Benevolent and charitable institutions:
Inhabitants of Baldwin, 37
corporations except that of benevolent, charitable, and scientific corporations were intended by Legislature to be exempt)
Maine Baptist Missionary Convention, 65
society—yes)
Rising Virtue Lodge, 73
Straw, 86
used for corporate purposes—no)
at 951 (religious society’s property used for its
purposes—yes)
Y.M.C.A. of
society—no)
Trustees of Ministerial Fund, 109
(missionary society—yes)
(summer camp—yes)
(missionary society—yes)
All
(agricultural fairs—yes)
Osteopathic
(land held for future expansion of hospital—yes)
MacDonald, 142
payment of annual dues and maintenance of lodge building that is not exempt—no)
Green Acre Baha’i I, 150
(missionary society—yes)
214 A.2d at 664, 665, 666 (wildlife sanctuary—no)
South Blue Hill Cemetery Ass’n, 221 A.2d at 287 (upkeep of
cemetery—yes)
State Y.M.C.A., 295 A.2d at 442 (cottage occupied by caretaker-employee—yes)
Lucci, 317 A.2d 1 (
Nature Conservancy, 385 A.2d at 43, 44 (nature preserve—no)
Pentecostal Assembly of
(religious activities—no)
Silverman, 451 A.2d at 106 (wildlife trust—no)
yes)(cf. § 652(1)(B))
Camps Newfound/Owatonna I, 604 A.2d 908 (passim);
Camps Newfound/Owatonna II, 655 A.2d 876 (passim), Camps Newfound/
Poland Spring Health Institute, 649 A.2d at 1100 (medical
clinic—yes)
Episcopal
summer camp—yes)
Marcotte Congregate Housing, 673 A.2d at 212 (portions of
congregate care facility—no)
Salvation Army, 1998 ME 76, ¶ 7, 709 A.2d at 729 (staff
residences at summer camp for underprivileged
children—yes)
Salvation Army, 1998 ME 98, ¶ 7, 710 A.2d at 915-16
(thrift store with profits for rehabilitation center—yes)
769 A.2d at 837 (remanded for fact-finding)
785 A.2d at 346-47 (land conservation or preservation alone—question not decided); id. ¶ 18, 785 A.2d at 347 (nature preserve used for education—yes, unless property is held for noncharitable investment or other noncharitable purpose)
(real property of credit counseling, debt management, and consumer education services business—no)
Christian Fellowship & Renewal Center II, 2006 ME 44, ¶ 39,
896 A.2d at 298 (religious organization that permitted recreation and relaxation on grounds, incidental hous- ing for staff and others, and incidental noncharitable income produced by noncharitable events, whether or not it provides services not provided by government— not barred as a matter of law; remanded for further findings)
Humboldt Field Research Institute, 2011 ME 130, ¶ 2, ___ A.3d
at ___ (claim made on this basis); at ¶ 9, ___ A.3d at ___
(if county commissioners deny exemption, taxpayer needs
to show the evidence compels a contrary determination)
36 M.R.S. § 652(1)(B)—Literary or scientific institutions:
Sigma Alpha Epsilon Society, 105
(
Kappa Sigma Society, 108
(college fraternities—no)
(wildlife sanctuary—no)
Nature Conservancy, 385 A.2d at 42 n.3 (nature preserve
with easements—no)
Alpha
fraternities—yes)
question not reached)(dictum)(but cf. § 652(1)(A))
fraternity or
American Martial Arts, 635 A.2d at 963 (remanded)
Humboldt Field Research Institute, 2011 ME 130, ¶ 2, ___ A.3d
at ___ (claim also made on this basis); at ¶ 9, ___ A.3d at
___ (if county commissioners deny exemption, taxpayer
needs to show the evidence compels a contrary
determination)
36 M.R.S. § 653—Estates of Veterans:
Millett, 121
larger than specified amount; not by that specified amount if estate exceeds that amount)
Whittier, 122 Me. at 88, 118 A. at 897 (same)
Holway, 130 Me. at 416, 157 A. at 236 (widow of veteran who
remarries is no longer his widow and then becomes disentitled to exemption for veterans’ widows)
Stockman, 147 Me. at 379, 87 A.2d at 682 (not without proof
of residence in Maine at time of assessment)
Dillon, 322 A.2d at 335 (case dismissed for lack of jurisdiction)
Lambert, 423 A.2d at 534 (10-year residency requirement
violates constitutional right to travel, but requirement
of Maine residency at time of induction does not)
36 M.R.S. § 655—Personal property:
Trustees of Ministerial Fund, 37 Me. at 373 (fund of
trustees—no)
Gardiner Cotton & Woolen Factory, 5 Me. at 137-39 (all
property employed in manufacturing except store, merchandise, and lot—yes)
Farnsworth Co. I, 62 Me. at 451 (manufacturing company—
procedural issue)
Donnell, 63 Me. at 16 (hay made exempt only by later
statute—no)
Opinion of the Justices, 102 Me. at 529, 66 A. at 727 (taxes
on railroad property, stock, and gross receipts are excise taxes, permitted by law)
Milo Water Co. II, 131 Me. at 379, 163 A. at 166 (water works,
etc.—no)
James, 136 Me. at 117, 3 A.2d at 432 (cabinet radio as an
article of household furniture—yes)
Opinion of the Justices, 141 Me. at 443, 42 A.2d at 48
(aqueducts, pipes, and conduits of any corporation
supplying a town with water)
Bridges Bros., 223 A.2d at 73 (vehicles of dealer taxable as
personal property or, once registered, as an excise tax, but not both)
Hardy’s Trailer Sales, 410 A.2d at 223-24 (under recent
statute, stock-in-trade including inventory that is manufactured merchandise held for sale—yes)
Roberta, 449 A.2d at 1139-41 (pleasure boat of nonresident
not regularly kept in state during preceding year—yes)
Jordan-Milton Machinery, Inc., 609 A.2d 1167 (where
property was not taxable because it was of a non-resident, no need to address issue whether property was exempt as stock-in-trade)
Eagle Rental, 632 A.2d at 131-32 (inventory for resale and
rental—yes)
Handyman Equipment Rental Co., 1999 ME 20, ¶ 7, 724
A.2d at 607 (same)
36 M.R.S. § 656—Certain real estate:
Portland, Saco & Portsmouth R.R.Co., 60 Me. at 198-201 (land
appurtenant to a railroad bed, and railroad buildings— no)
Plaisted, 62 Me. at 92 (tannery not within scope of exemption
for improvements to water power of stream)
Rockland Water Co., 82 Me. at 194, 19 A. at 164 (aqueducts,
conduits, etc. of privately owned utility—no)
Norway Water Co., 85 Me. 330, 27 A. 143 (passim)(same—no)
Maine Water Co., 90 Me. at 182, 38 A. at 102 (same—no)
New England Tel. & Tel. Co., 103 Me. at 249, 68 A. at 1044
(underground conduits and telephone wires—yes)
Portland Terminal Co., 129 Me. at 267-70, 151 A. at 461-62
(land within railroad right-of-way and commercial, nonrailroad building built thereon—yes)
In re Maine Central R.R. Co., 134 Me. at 219, 183 A. at 845
(railroad right-of-way—yes, but not buildings on it)
Hinds I, 134 Me. at 439, 441, 187 A. at 718-19 (same)
Hinds II, 141 Me. at 78, 39 A.2d at 9 (buildings within and
outside railroad right-of-way—no; taxable as real estate to owner of building although on land leased by railroad; leased building owned by railroad taxable to lessee as owner during term of lease)
Connecticut Bank & Trust Co., 477 A.2d at 271-72 (pollution
control facility without DEP certification—no)
Exemption must be determined as of April 1st of year in question, not by statute granting exemption for later years
Donnell, 63 Me. at 16
The way in which property is used, not ownership, is the key to whether it is tax exempt as public property
Sigma Alpha Epsilon Society, 105 Me. at 218-19, 74 A. at 21
Dodge, 151 Me. at 481, 121 A.2d at 352
Opinion of the Justices, 231 A.2d at 434-35
Where there are coexisting property rights—one of which is of an organization entitled to exemption, the other not—it is the way in which the property is used that determines taxability
Dodge, 151 Me. at 481, 121 A.2d at 352
Alpha Rho Zeta, 477 A.2d at 1134
Use of exempt property by private party does not defeat exemption if the private party’s use is the public use underlying the exemption
Howard D. Johnson Co., 351 A.2d at 534
Property of a municipality not devoted to public use is not exempt
Inhabitants of Boothbay, 148 Me. at 35, 88 A.2d at 822
Dodge, 151 Me. at 480, 481, 121 A.2d at 352
Whether the Legislature can constitutionally create and provide for taxation exemption for a municipal corporation, for public purpose, as local governments are exercising the state’s power without being socialistic
Portland Water Co., 67 Me. at 137-38
Dover & Foxcroft Village Fire Co., 96 Me. at 556, 53 A. at 68
Augusta Water Dist., 101 Me. 148, 63 A. 663 (passim)
Laughlin, 111 Me. 486, 90 A. 318 (passim)
Greaves II, 143 Me. at 211, 59 A.2d at 219
Inhabitants of Boothbay, 148 Me at 42-43, 88 A.2d at 825-26
Madison Water Dist., 1998 ME 154, ¶¶ 6, 8, 713 A.2d at 330
Portland Water Dist., 1999 ME 161, ¶¶ 10-13, 740 A.2d at
567-68
Municipal corporations are presumptively exempt from taxation as public property if acting in trust for the public
Camden Village Corp., 77 Me. at 535-36, 1 A. at 690-91
Inhabitants of Whiting, 121 Me. at 122-23, 124-25, 115 A. at
897, 898
Greaves I, 140 Me. at 163, 34 A.2d at 695
Greaves II, 143 Me. at 211-12, 59 A.2d at 219
But there is no per se exemption for public property as such
Sigma Alpha Epsilon Society, 105 Me. at 219, 74 A. at 21
Maine Turnpike Authority is a public agency whose land is exempt from taxation when acquired or used for its statutory purpose
Howard D. Johnson Co., 351 A.2d at 528-29
Whether the organization’s stated purposes are benevolent and charitable is the first issue to resolve
Christian Fellowship & Renewal Center II, 2006 ME 44, ¶ 16,
896 A.2d at 293
Organizational qualification is a prerequisite for a charitable exemption
Christian Fellowship & Renewal Center II, 2006 ME 44, ¶ 27,
896 A.2d at 296
Benevolent and charitable organization defined
Maine Baptist Missionary Convention, 65 Me. at 93-94
Rising Virtue Lodge, 73 Me. at 434
Green Acre Baha’i I, 150 Me. at 354, 110 A.2d at 584
(four-point test often cited: examine whether organization is organized and operating in good faith
purely for benevolent and charitable purposes, whether there is a profit motive revealed or concealed, whether there is any pretense to avoid taxation, and whether production of revenue is purely incidental to dominant purpose as benevolent and charitable)
South Blue Hill Cemetery Ass’n, 221 A.2d at 287
State Y.M.C.A., 295 A.2d at 443
Christian Schools, 489 A.2d at 516 n.3
Maine AFL-CIO Housing Development, 523 A.2d at 584
Poland Spring Health Institute, 649 A.2d at 1100
Episcopal Camp Foundation, 666 A.2d at 110
Cushing Nature & Preservation Center, 2001 ME 149, ¶ 17,
785
A.2d at 347 (citing four-point test of Green
Acre
Baha’i as a nonexclusive list)
Credit Counseling Centers, 2003 ME 2, ¶ 15, 814 A.2d at 463
Christian Fellowship & Renewal Center II, 2006 ME 44, ¶¶ 17,
26, 29, 896 A.2d at 294, 295, 296 (these matters address organizational qualifications)
“Charitable” has a legal meaning
Maine Baptist Missionary Convention, 65 Me. at 93-94
Episcopal Camp Foundation, 666 A.2d at 110
It is difficult to say what the difference is between benevolent and charitable
Maine Baptist Missionary Convention, 65 Me. at 93
Camp Emoh Associates, 132 Me. at 68, 166 A. at 60
Benevolent is equated with charitable
Rising Virtue Lodge, 73 Me. at 433
Holbrook Island Sanctuary, 161 Me. at 483-84, 214 A.2d at 664
Maine AFL-CIO Housing Development, 523 A.2d at 584
Poland Spring Health Institute, 649 A.2d at 1100
Christian Fellowship & Renewal Center II, 2006 ME 44, ¶ 13,
896 A.2d at 293
The charitable exemption was created at a time when government provided few services, and religious institutions and charities provided many services that government did not provide or subsidize
Christian Fellowship & Renewal Center II, 2006 ME 44, ¶ 23,
896 A.2d at 295
The charitable exemption means, in effect, that the Legislature has decided to give up tax dollars to purchase charitable services
Camps Newfound/Owatonna II, 655 A.2d at 878
The justification for a charitable exemption is a quid pro quo: it alleviates the need for government to provide such services or benefits
Episcopal Camp Foundation, 666 A.2d at 110
But a charitable exemption cannot be denied because activities do not provide a service or benefit—a quid pro quo—to offset government services and benefits; this is merely on factor to consider
Christian Fellowship & Renewal Center II, 2006 ME 44, ¶¶ 22,
24, 35-37, 896 A.2d at 295, 297-98 (recreational
activities supported by a religious or preservation organization)
Organizations need not displace governmental services in order to qualify for a charitable exemption
Christian Fellowship & Renewal Center II, 2006 ME 44, ¶ 23
896 A.2d at 295
After considering an organization’s stated purposes, examine whether the organization’s activities are benevolent and charitable under four-part test of Green Acre Baha’I Institute I
Christian Fellowship & Renewal Center II, 2006 ME 44,
¶¶16-17, 896 A.2d at 293-94
To qualify for a benevolent and charitable exemption, an organization must be operated exclusively for such purposes
Credit Counseling Centers, 2003 ME 2, ¶ 12, 814 A.2d at 462
Christian Fellowship & Renewal Center II, 2006 ME 44, ¶ 12,
896 A.2d at 293
Education may constitute a charitable purpose
See Alpha Rho Zeta, 477 A.2d 1131
Episcopal Camp Foundation, 666 A.2d at 110
Cushing Nature & Preservation Center, 2001 ME 149, ¶ 16,
785 A.2d at 347
Court must examine, first, whether stated purpose of organization is charitable and, second, whether the property is being used solely for benevolent and charitable purposes
Cushing Nature & Preservation Center, 2001 ME 149, ¶ 10,
785 A.2d at 345-46
Charitable activity defined
South Blue Hill Cemetery Ass’n, 221 A.2d at 287 ((1) for the benefit of an indefinite number of persons either (2a) by bringing their minds and hearts under the influence of education or religion, (2b) by relieving their bodies from disease, suffering, or constraint, (2c)
by assisting them to establish themselves in life, or (2d) by erecting of maintaining public buildings or works or otherwise lessening the burdens of government)
Episcopal Camp Foundation, 666 A.2d at 110
Marcotte Congregate Housing, 673 A.2d at 211-12
Christian Fellowship & Renewal Center II, 2006 ME 44, ¶ 14,
896 A.2d at 293
Charitable means that the public benefits, not just members of the organization
Rising Virtue Lodge, 73 Me. at 435
Benefit for an indefinite number of persons does not mean the activity must be open to the public at large
Christian Fellowship & Renewal Center II, 2006 ME 44, ¶ 15,
896 A.2d at 293 (organization may limit its benefits to
a given religious affiliation)
The benevolent and charitable exemption may not be denied by reason
of limitation in the classes of those for whose benefit the funds of an organization are applied
Christian Fellowship & Renewal Center II, 2006 ME 44, ¶ 15,
896 A.2d at 293
A charitable organization may restrict the use of its property and need not allow all public uses; it qualifies for exemption if it uses its property solely for a charitable purpose, and may exclude others not using the property for that purpose
Cushing Nature & Preservation Center, 2001 ME 149 ¶ 13,
785 A.2d at 346
Christian Fellowship & Renewal Center II, 2006 ME 44, ¶ 30,
896 A.2d at 296 (religious organization can limit benefits to persons or groups of same religious affiliation)
Religious purposes are not to be equated with benevolent and charitable
Y.M.C.A. of Auburn, 86 Me. at 246, 29 A. at 992
Osteopathic Hospital of Maine, 139 Me. at 29, 26 A.2d at 643
Pentecostal Assembly of Bangor, 414 A.2d at 893-94
But being a religious organization does not remove it from being charitable
Ferry Beach Park Universalists I, 127 Me. at 138, 142 A. at 66
Ferry Beach Park Universalists II, 136 Me. at 205, 7 A.2d at 429
Green Acre Baha’i I, 150 Me. at 353, 110 A.2d at 583
Episcopal Camp Foundation, 666 A.2d at 110
Salvation Army, 1998 ME 75, ¶ 5, 709 A.2d at 729
Christian Fellowship & Renewal Center II, 2006 ME 44, ¶¶ 7,
15, 30, 896 A.2d at 290, 293, 296
Recreation and relaxation activities may qualify as charitable activities if they serve a charitable purpose of the organization
Christian Fellowship & Renewal Center II, 2006 ME 44, ¶¶ 31,
36, 896 A.2d at 296, 297
But property may qualify for the charitable exemption even if it has little use for recreation or relaxation
Christian Fellowship & Renewal Center II, 2006 ME 44, ¶ 31,
896 A.2d at 296
Charitable source of funds is some indication of charitable status
Rising Virtue Lodge, 73 Me. at 434
Camp Emoh Associates, 132 Me. at 69, 166 A. at 60
Episcopal Camp Foundation, 666 A.2d at 111
Irrelevance of source of funds
Maine AFL-CIO Housing Development, 523 A.2d at 584
Credit Counseling Centers, 2003 ME 2, ¶ 12, 814 A.2d at 462
The charitable exemption applies only when (1) property is owned and occupied or used solely for entity’s purposes by benevolent and charitable institutions, and (2) institution is organized and conducted exclusively for benevolent and charitable purposes
Christian Fellowship & Renewal Center II, 2006 ME 44, ¶ 12,
896 A.2d at 292-93
Benevolent and charitable exemption statute require (1) ownership and (2) either use or occupancy solely for its own purposes
Camp Emoh Associates, 132 Me. at 70, 166 A. at 61
Ferry Beach Park Universalists II, 136 Me. at 203, 7 A.2d at 428
State Y.M.C.A., 295 A.2d at 442
Alpha Rho Zeta, 477 A.2d at 1136
American Martial Arts, 635 A.2d at 963
Salvation Army, 1998 ME 98, ¶ 7, 710 A.2d at 916
Christian Fellowship & Renewal Center I, 2001 ME 16, ¶ 6,
769 A.2d at 837
The test is not (1) ownership and occupancy or (2) sole use
American Martial Arts, 635 A.2d at 963
It is the fact of a charitable use, not its intensity, that qualifies property for the charitable exemption
Christian Fellowship & Renewal Center II, 2006 ME 44, ¶ 31,
896 A.2d at 296
What constitutes sole use
Odd Fellows Androscoggin Lodge, 99
Nature Conservancy, 385 A.2d at 43
Alpha
Marcotte Congregate Housing, 673 A.2d at 212
769 A.2d at 837
Christian Fellowship & Renewal Center II, 2006 ME 44, ¶¶ 34,
38, 896 A.2d at 297, 298 (sole use does not exclude incidental, noncharitable use so long as the dominant use is charitable)
Incidental use
Camden Village Corp., 77
Odd Fellows Androscoggin Lodge, 99
520
All
State Y.M.C.A., 295 A.2d at 443
Lucci, 317 A.2d at 3
Green Acre Baha’i I, 150
Alpha
Salvation Army, 1998 ME 75, ¶ 7, 709 A.2d at 729
Christian Fellowship & Center I, 2001 ME 16, ¶ 6 n.2, 769 A.2d
at 837 n.2
Christian Fellowship & Renewal Center II, 2006 ME 44, ¶¶ 34,
38, 896 A.2d at 297, 298
Whether the Legislature can provide exemption to a
benevolent and charitable
Green Acre Baha’i II, 159
Camps Newfound/Owatonna II, 655 A.2d at 878-79 (commerce
clause); 879-80 (equal protection); 880 (privileges and
immunities)
Camps Newfound/
at 1111 (on remand from United States Supreme Court)
Board of Directors of a benevolent and charitable
corporation need not reside in
A charitable organization can be seasonal
at 66
Green Acre Baha’i I, 150
Lucci, 317 A.2d at 2 & n.2
Advanced Medical Research Foundation, 555 A.2d at 1042
Episcopal
Salvation Army, 1998 ME 75, 710 A.2d 729 (semble)
Property need not be in use on April 1st
Osteopathic
Advanced Medical Research Foundation, 555 A.2d at 1042
A municipality is not a business or a charitable corporation
Thorndike, 82
Organization can generate revenues, so long as they are incidental to its dominant benevolent and charitable purposes
785 A.2d at 347
Christian Fellowship & Renewal Center II, 2006 ME 44, ¶ 34,
896 A.2d at 297
Rents can be collected without losing exemption
Odd Fellows Androscoggin Lodge, 99
Cf. All
Green Acre Baha’i I, 150
Lucci, 317 A.2d at 2 & n.3
Salvation Army, 1998 ME 75, ¶ 7, 709 A.2d at 729
Property can be occupied rent
State Y.M.C.A., 295 A.2d at 442
Lucci, 317 A.2d at 2 & n.6
Land can be undeveloped—if held to be used for future expansion consistent with benevolent and charitable purposes
All
Osteopathic
Green Acre Baha’i I, 150
Lucci, 317 A.2d at 2 & n.4
Poland Spring Health Institute, 649 A.2d at 1099
Question whether land that falls under Farm and Open Space Law is precluded from being exempt although held by a charitable and benevolent organization
14, 785 A.2d at 345, 346 (trial court’s determination
noted)
Commercial use of intertidal zone of property does not negate eligibility for exemption because public enjoys an easement for purposes of fishing, fowling, and navigation
785 A.2d at 346
If purpose of alleged charitable use violates public policy, it cannot be classified as charitable
785 A.2d at 346
Fact that an organization is tax exempt under 26 U.S.C. § 501(c)(3) does not necessarily make it exempt for state tax purposes
But that fact that an organization’s purposes qualify for such an exemption is an indication that it should qualify for a charitable exemption
Christian Fellowship & Renewal Center II, 2006 ME 44, ¶ 28,
896 A.2d at 296
Under old view, there could be “partial exemption”—exemption for part of property being used consistent with benevolent and charitable purposes, but no exemption for property being used inconsistent with that
Y.M.C.A. of
Odd Fellows
Androscoggin Lodge, 99
Sigma Alpha Epsilon Society, 105
Kappa Sigma Society, 108
428
All
Osteopathic
Change towards now extant view must be legislative
Odd Fellows Androscoggin Lodge, 99
Legislative change to modern view described
Nature Conservancy, 385 A.2d at 43
Under modern statute, a benevolent and charitable corporation must make sole use of the property is a manner consistent with its purposes
Marcotte Congregate Housing, 673 A.2d at 212
Salvation Army, 1998 ME 98, ¶ 6, 710 A.2d at 915
Although an inheritance tax is not a property tax, so that an exemption for property would not necessarily exempt from taxation the privilege of receiving the property, if an organization is exempt under property tax laws it is also exempted from taxation under inheritance tax laws
MacDonald, 142
If owner is exempt, so too is private lessee of land thereon according to legislative intention
Howard D. Johnson Co., 351 A.2d at 531
Soft costs—insurance, excavation, etc.—are necessary for construction and so included in general valuation of property (and are exempt if property is exempt)
Portland Water Dist., 1999 ME 161, ¶ 13 n.7, 740 A.2d at
568 n.7
Who is entitled to an abatement if organization qualifies for exemption
A guardian of an estate has a duty to pay taxes due, and a duty to assert as exemption if applicable; voluntary payment by a guardian on exempt property is not voluntary payment by the ward
Stockman, 147
VI. Classified
Properties
Tree Growth Tax Law Cases
Definition of “forest land,” 36 M.R.S. § 573
Eastler, 499 A.2d at 926
Purpose of Tree Growth Tax Law program
Opinion of the Justices, 335 A.2d at 912 n.1
Chase, 1998 ME 260, ¶¶ 15, 17 n.6, 721 A.2d at 640, 641 n.6
Operation of Tree Growth Tax Law program described
McBreairty, 663 A.2d at 54
Tree Growth Tax Law program is constitutional
McBreairty, 663 A.2d at 54-55
Withdrawal of property from Tree Growth Tax Law program
Dubois, 645 A.2d at 1128 (withdrawal penalties are subject
to abatement process)
Farmland and Open Space Cases
Possible interplay of 36 M.R.S. § 652 with farm and open space law
785 A.2d at 346, 347
Mine Site Cases
Minerals will not be valued separately from the land when the title to the surface and the mineral resources are in the same person, but will be valued separately when the fee to the land is in another person
Knox Lime Co., 230 A.2d at 818 (not a mine site case)
VII. Equalized Municipal
Valuation
State valuation of municipalities is the equalized just value of all real and personal property within each municipality; see 36 M.R.S. § 208
Town of
Process of equalizing municipal valuation, including legality of “two year rule”
Town of
Town of
Board of Property Tax Review must consider Bureau of Taxation’s equalized valuations at fair market value and cannot adjust value of property within a municipality to have it be uniform with like property
in another municipality assessed differently or at another valuation
Town of
Board of Property Tax Review has no authority in equalizing state valuation cases to alter Bureau of Taxation’s assessment of a municipality not before it
Town of
Procedural issue
Dodge, 577 A.2d at 347 (town had no
authority to act on
request for poverty abatement after
plaintiff had appealed denial to county commissioners)
Key question under 36 M.R.S. § 841(2) is whether one
is unable to contribute to the public charges
Macaro, 468 A.2d at 605-06
Joyce, 565 A.2d 90
Gilmore, 580 A.2d at 700
Sager, 2004 ME 40, ¶ 3, 845 A.2d at 568
Hustus, 2004 ME 41, ¶ 6, 845 A.2d at 565
The purpose of the statute is to prevent towns from
forcing the sale of property in order to collect taxes from those otherwise
unable to pay
Macaro, 468 A.2d at 606
Mason, 1998 ME 201, ¶ 7, 715 A.2d at 181
Hustus, 2004 ME 41, ¶ 12 n.1, 845 A.2d
at 566 n.1
Therefore, reliance on ownership of a valuable and
unemcumbered asset, such as a house, to deny a poverty abatement would be
self-defeating in the absence of an ability to pay taxes
Macaro, 468 A.2d at 606
Burden to prove eligibility for poverty abatement is on the applicant
Joyce, 565 A.2d 90
Gilmore, 580 A.2d at 700
Sager, 2004 ME 40, ¶ 11, 845 A.2d at 570
36 M.R.S. § 841(2) applies to both residential and commercial properties
Hustus, 2004 ME 41, ¶¶ 1, 11-12, 14, 845 A.2d at 564, 566,
567
Where taxes assessed against commercial property are the responsibility of a person, not a separate business entity, the person’s poverty is a relevant inquiry
Hustus, 2004 ME 41, ¶ 10, 845 A.2d at 566
Assessors have considerable discretion under 36 M.R.S. § 841(2)
Sager, 2004 ME 40, ¶ 10, 845 A.2d at 569
But do not have the discretion to exclude property used for commercial purposes from consideration of a poverty abatement
Hustus, 2004 ME 41, ¶ 14, 845 A.2d at 567
Three-year backward reach of 36 M.R.S. § 841(2)
Sager, 2004 ME 40, ¶ 10, 845 A.2d at 569
Applicant’s eligibility for abatement is not to be determined only by evidence before the selectmen/city council or the board of assessment review, but those bodies may consider all relevant facts and circumstances
Gilmore, 580 A.2d at 700
Fact that town granted abatement for one year does not automatically mean applicant for abatement is entitled to abatement for another year
Gilmore, 580 A.2d at 700
When one who does not own the land on which she lives applies for a poverty abatement, the denial of the application means only that the true owner must pay the taxes
Mason, 1998 ME 201, ¶ 6, 715 A.2d at 181
Mason, 1998 ME 201, ¶ 8, 715 A.2d at 181
The Maine Residents Property Tax Program, 36 M.R.S. §§ 6201-6220, provides in section 6216 that benefits received under the program are to be considered when determining eligibility for poverty tax abatement, but there is no automatic setoff of benefits received
Sager, 2004 ME 40, ¶ 9, 845 A.2d at 569
Municipalities should consider the amount of a refund under the Maine Residents Property Tax Program when evaluating an applicant’s financial need, rather than when calculating the abatement to be awarded
Sager, 2004 ME 40, ¶ 12 n.1, 845 A.2d at 570 (concurring op.)