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Commercial Fisheries News
Volume 33 Number 11
July 2006
Maine enacts working waterfront tax relief
Gov. John Baldacci invited supporters to a ceremonial signing of the working waterfront legislation on June 7. Enjoying the accomplishment, from left: Sue Inches, State Planning Office; Rep. Jane Eberle, South Portland; Jennifer Litteral, Island Institute; Susan Swanton, executive director, Maine Marine Trades Association, Joey Donelly (partially blocked from view), Maggie Drummond, Grow Smart Maine; Rep. Leila Jane Percy, Phippsburg; Tim Glidden, executive director, Land for Maine’s Future; Sen. Dennis Damon, Hancock; Gov. John Baldacci; Rep. Ed Mazurek, Rockland; Peter Cowan, Maine SeaBait; David Etnier, deputy commissioner, Department of Marine Resources; John Bubier; and Patrice McCarron, executive director, Maine Lobstermen’s Association, with baby son, Edwin.
AUGUSTA, ME - Maine has taken a giant step forward toward the goal of protecting and preserving its working waterfront real estate, and the move has come with the full support of the state’s voters, Legislature, and governor.
Two bills that originated from a constitutional amendment and bond issue approved by voters in last November’s general election were each overwhelmingly passed by legislators this spring and signed into law by Gov. John Baldacci.
Similar to the trend in locations all along the Atlantic coast, Maine’s working waterfront property is under threat from high-end real estate development pressure and property taxes that reflect the skyrocketing market values. Fishing business owners can face insurmountable tax bills on their shorefront land because of the selling prices on neighboring properties.
But now there are two tools in place to help secure a shorefront place, offer tax relief, and ensure access to the water for commercial fishing operations.
The Working Waterfront bill, LD 1972, allows waterfront property that supports the commercial fishing industry to be taxed based on its current use.
Prior to this bill’s passage, all waterfront property had to be taxed at its “just value,” also known as its highest and best use. That meant the land supporting a fishing dock and bait shed had to be valued and taxed as if it were supporting a mansion or resort.
Voters overwhelmingly approved a constitutional amendment that allowed the Legislature to adjust the tax rate on working waterfront property, similar to the exception in place for agricultural, tree growth, and open space lands.
LD 1930 allows a working waterfront business to sell some of its development rights, as a covenant, to a third party. The covenant would ensure that the property remain as working waterfront and allow the property to be taxed a reduced rate.
Both bills were sponsored by state Sen. Dennis Damon who represents Hancock County, which includes an area of the Downeast coast where fishing is the economic engine.
Damon, who championed the working waterfront initiatives, was joined on both bills by a long list of co-sponsors. Organized support also came from the Working Waterfront Coalition, a statewide advocacy group that was convened by the Coastal Program of the state planning office.
“I have witnessed a constant and steady decrease in the amount of working waterfront during my lifetime. This decrease in fisherman’s access to the sea is in part due to soaring property values and likewise, tax bills that have forced people off property that has supported fishing for generations,” said Damon in a press release following the signing of the bills by the governor.
He concluded, “This is historic stuff. This first-in-the-nation legislation leads the way in protecting working waterfronts.”
Pilot program
In early June, the Maine Department of Marine Resources (DMR) announced that the Working Waterfront Access Pilot Program was up and going. The purpose of the program is to help secure waterfront land to support commercial fishing businesses and activities by giving matching grants to qualifying projects.
The $2 million that funds the program was part of the $12 million Land for Maine’s Future bond approved by voters last November. Funds are available to acquire working waterfront property through a variety of means, including covenants and conservation easements.
The DMR has contracted with Coastal Enterprises Inc. (CEI) and the Island Institute to serve as program managers. Their role is to assist and advise grant applicants to assure that their proposals are complete and meet the minimum program requirements.
Grants will be given for up to 50% of the cost of the project. Application materials, which include the specific criteria for matching funds, and a scoring workbook are now available.
The application deadline is Nov. 1, 2006. The Land for Maine’s Future’s Board will make final decisions, which are expected to be announced by the end of January 2007. All projects must be completed by the spring of 2008.
For more information, call Hugh Cowperthwaite at CEI, (207) 772-5356, or check the web site <www.wwappp.org>. /cfn/
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