Sec. 1. 36 MRSA §701-A, as amended by PL 1999, c. 478, §2, is repealed and the following enacted in its place:

§701-A.__Just value defined

1. Determination of just value.__In the assessment of property, assessors in determining just value are to define this term in a manner that recognizes only that value arising from presently possible land use alternatives to which the particular parcel of land being valued may be put. In determining just value, assessors must consider all relevant factors.__The just value of land is determined to arise from and is attributable to legally permissible use or uses only.

For purposes of this section, "relevant factors" includes, without limitation, the effect upon value of any enforceable restrictions to which the use of the land may be subjected, current use, physical depreciation, sales in the secondary market, functional obsolescence and economic obsolescence.__For purposes of this section, "enforceable restrictions" includes, without limitation, zoning restrictions limiting the use of the land, subdivision restrictions and any recorded contractual provisions limiting the use of the land.

2.__Valuation of certain unimproved acreage.__For the purpose of establishing the valuation of unimproved acreage in excess of an improved house lot, contiguous parcels and parcels divided by a road, power line or right-of-way may be valued as one parcel when each parcel is 5 or more acres, the owner gives written consent to the assessor to value the parcels as one parcel and the owner certifies that the parcels are not held for sale and are not subdivision lots.

3.__Low-income housing.__For the purpose of establishing the valuation of land and improvements on that land constituting housing acquired, rehabilitated or constructed using the federal low-income housing tax credit authorized by the Code, Section 42, including all relevant factors and enforceable restrictions, the presence of intangible assets or rights, including, but not limited to, contracts and agreements, government subsidies, tax credits and permits and licenses, may not be included in determining the value of such housing.

SUMMARY

This bill excludes from valuation for property tax assessment purposes intangible assets or rights, such as