AUGUSTA - Last week, the Maine House of Representatives unanimously enacted LD 1258, sponsored by Rep. Mo Terry, D-Gorham, which would provide support to Maine farmers by increasing the property tax exemption for farm machinery.
Current Maine law provides a $10,000 personal property tax exemption for machinery used for haying and other field crop work. However, the credit has not been adjusted since 1977. Terry's bill would increase the maximum exemption to $45,000 beginning on April 1, 2024.
"Buying a baler or another large piece of equipment, even a used one, can be a huge expense for farmers, particularly for the small family farms that make up the majority of our state's agricultural industry," said Terry. "A $10,000 exemption just doesn't cut it anymore. This increase will mean a great deal to the farmers who put food on our tables and help fuel our rural economy."
The state would be required to reimburse municipalities at 50% of the loss of revenue resulting from the increased property tax exemption. The bill would exclude equipment from eligibility for this credit if the property is also eligible for the Business Equipment Tax Exemption program or for the Business Equipment Tax Reimbursement program.
The bill faces additional votes in the Legislature.
Terry, who represents part of Gorham, is serving her fourth term in the Maine House and serves as the House Majority Leader. She is a chef and small business owner with more than 25 years of experience in the food service industry.