| Local Option Property Tax Incentive
Preservation Incentives in Maine Funding for preservation projects is difficult to come by, especially if you are private homeowner. Maine Preservation encourages you to investigate every possible incentive available in order to stimulate historic preservation activities in your community. One very flexible (though little known) tool is the Local Option Property Tax Reimbursement, adopted as State enabling legislation on April 6, 2000 after being approved by voters statewide on the November, 1999 ballot. York adopted this incentive over a year ago, and other communities are currently investigating ways in which they may use this, too. Here is a summary to copy and share with your Town Manager and local elected officials: HISTORIC AND SCENIC PRESERVATION LOCAL OPTION PROPERTY TAX REIMBURSEMENT Sec. 1. 30-A MRSA ' 5730 is enacted to read: 5730. Historic and scenic preservation Pursuant to the Constitution of Maine, Article IX, Section 8, Subsection 5, a municipality may raise or appropriate money to reimburse taxpayers for a portion of taxes paid under Title 36, Part 2 on real property if the property owner agrees to maintain the property in accordance with criteria that are adopted by ordinance by the governing legislative body of the municipality and that provide for maintaining the historic integrity of important structures or providing a scenic view. The Maine Historic Preservation Commission shall provide guidance, if requested by a municipality, in implementing this section. The Maine Historic Preservation Commission has prepared an outline of the four basic steps that municipalities may choose to follow in implementing Sec. 1. 30-A MRSA ' 5730 and samples of types of information to include in a preservation and scenic resource ordinance and a maintenance agreement. Definitions for relevant historic and scenic terms are also included. Additional guidance will be provided by the Commission, as requested. This program is not related in any way to the Federal or State Historic Preservation Tax Incentive Program. STEP 1. AUTHORIZE FUNDING: Under Sec. 1. 30-A MRSA ' 5730, municipalities raise or appropriate money to reimburse taxpayers for a portion of taxes paid under Title 36, Part 2 on real property. STEP 2. ADOPT IMPLEMENTING ORDINANCE: The governing legislative body of the municipality should, based upon their comprehensive plan, adopt by ordinance, criteria that provides for designating historic structures and scenic views and for maintaining the historic integrity of important structures or providing a scenic view. Historic structures - A property is qualified for inclusion under this section if, at the time the municipality reimburses the owner for a portion of taxes, one of the following apply: A. It is individually listed in the National Register of Historic Places pursuant to the National Historic Preservation Act of 1966 (as amended). B. It is a contributing property to a National Register-listed historic district. C. It is locally designated as a historic property, or as a contributing property to a locally designated historic district. D. The Maine Historic Preservation Commission has certified to the local governing body that the property in question satisfies either A or B above, or that it believes the property is eligible to be listed in the National Register of Historic Places. 1. Criteria for Maintaining the Historic Integrity of Important Structures - In order for a taxpayer to maintain the historic integrity of an important structure, maintenance and related improvements should be consistent with the United States Secretary of the Interior=s Standards for the Treatment of Historic Properties 1995 (or most current revision). Scenic View - A property is qualified for inclusion under this section if, at the time the municipality reimburses the owner for a portion of taxes, one of the following apply: A. It is an area identified by the State Planning Office as having scenic value. B. It is a locally designated view or view corridor from a public place. C. It is a locally designated natural or cultural feature in an identified view corridor (i.e., churches, lighthouses, fields, mountains, islands, etc.). D. It is a locally designated part of a municipality that contributes to the character of the town (i.e., village square, historic sites, etc.). 1. Criteria for Providing a Scenic View - In order for a taxpayer to be considered to provide a scenic view, all property maintenance and improvements must be consistent with providing the scenic view. STEP 3. DEVELOP MAINTENANCE AGREEMENT: The local government should enter into a formal legal agreement with a property owner who agrees to maintain the property in accordance with criteria that are adopted by ordinance by the governing legislative body of the municipality and that provide for maintaining the historic integrity of important structures or providing a scenic view for a specified length of time. For maintaining important structures, municipalities can choose whether qualifying work should be restricted to the structure=s exterior and/or interior, what the minimum threshold for maintenance is to qualify for the program (not to include demolition by neglect), and what the rate/s of reimbursement should be based upon scope of work and expenditures. For providing a scenic view, municipalities can choose what constitutes the minimum requirements for property maintenance to qualify for the program and what the rate/s of reimbursement should be based upon. STEP 4. ADMINISTER PROGRAM: The local review body (identified by ordinance and following guidelines within the local maintenance agreement) reviews and approves maintenance activities and improvements based upon adopted criteria. The local review body then forwards recommendations to the appropriate municipal party for the reimbursement of taxes. For more information please contact Kirk Mohney , Assistant Director of the Maine Historic Preservation Commission at (207) 287-2132.
LD 2537: An Act to Promote Historic and Scenic Preservation In response to the overwhelming voice of Maine voters in November 1999, the enabling legislation authorizing local option property tax incentives for historic and scenic properties was signed into law by Governor Angus S. King on April 6, 2000. The legislation became effective August 11, 2000, following the close of the 119th Legislature. Maine Preservation served as the lead private-sector advocate for this legislation. When it passed, Maine became the 14th state in the nation to provide this type of local option property tax incentive to stimulate and encourage historic and scenic preservation. So far, York is the only municipality to evoke this tax incentive. This incentive is an important tool for communities to use when developing their comprehensive plans and programs and historic and scenic preservation. It can help communities retain their identities in the face of intown development pressures and exurban sprawl, which places historic properties and scenic vistas at great risk. JOIN IN! Talk about adopting this property tax incentive for historic building owners with YOUR elected and appointed officials. For help, contact the Maine Historic Preservation Commission in Augusta at (207) 287-2132 for assistance in developing your program.
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Maine became the 18th state to adopt a State Rehabilitation Tax Credit. For information on how the Federal and State Rehab Tax Credits can help you, contact the Maine Historic Preservation Commission at (207) 287-2132. |
