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An Act Relating to the Valuation of Certain Retail Property
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA §701-A, as amended by PL 2007, c. 389, §1, is further amended to read:
§ 701-A.Just value defined
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, including without limitation the effect upon value of any enforceable restrictions to which the use of the land may be subjected including the effect on value of designation of land as significant wildlife habitat under Title 38, section 480-BB, current use, physical depreciation, sales in the secondary market, functional obsolescence and economic obsolescence. Restrictions include but are not limited to zoning restrictions limiting the use of land, subdivision restrictions and any recorded contractual provisions limiting the use of lands. The just value of land is determined to arise from and is attributable to legally permissible use or uses only.
For the purpose of establishing the valuation of unimproved acreage in excess of an improved house lot, contiguous parcels and parcels divided by road, powerline 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.
For the purpose of establishing the valuation of a retail sales facility, as defined in section 6651, subsection 5, in excess of 20,000 square feet, the property must be valued based on its current use or, if the property is vacant, at its highest and best use. In establishing the valuation, assessors shall consider:
 
1.  Highest and best use.     Sales and rentals of properties exhibiting the same or a similar highest and best use, taking into consideration the pool of potential buyers and sellers that typically buy or sell properties similar to the property being valued, including potential buyers who are investors or owner-occupants; and
 
2.  Similar properties.     Sales and rentals of properties that are similar to the property being valued with regard to age, condition, use, type of construction, location, design, physical features and economic characteristics.
 
SUMMARY
This bill provides that, for property tax purposes, retail sales facilities in excess of 20,000 square feet must be valued based on their current use compared to similar properties in their retail market segment or, if vacant, according to their highest and best use.