Property:
Maine: New Law Addresses Valuation of Improved Real Property Employing Highest and Best Use

L.D. 1129 / H.P. 807, enacted without governor’s signature 4/26/22. New law provides that for purposes of establishing the valuation of improved real property in Maine, the property must be valued based on its highest and best use as of April 1 of each year, taking all the following three approaches to value into consideration: cost, income capitalization, and sales comparison. In establishing the valuation of improved real property, the legislation states that Maine assessors must consider age, condition, use, type of construction, location, design, physical features, and economic characteristics. Furthermore, the legislation provides that in determining “just value” consistent with Maine’s constitution, a property subject to restrictions, contractual or otherwise, that restrict the permitted use of a property may not be considered comparable to property not so restricted. Please contact us with any questions.