Maine Tree Growth Tax Law: Complete Guide for Forest Landowners

Maine’s Tree Growth Tax Law provides substantial property tax relief for forest landowners who commit to sustainable timber management, reducing tax bills by up to 95% compared to fair market valuations. Since 1972, this program has enrolled over 11.2 million acres—roughly 60% of Maine’s forestland—while protecting working forests from development pressure through a unique current-use taxation system that values land based on its capacity to grow trees, not its potential for subdivision or commercial development.

For Maine forest landowners managing 10 or more forested acres, the maine tree growth tax law (36 M.R.S. §§571-584-A) represents one of the nation’s most comprehensive forestland tax incentive programs. But enrollment demands serious commitment: landowners must develop and follow a forest management plan certified by a licensed professional forester, recertify compliance every 10 years, and face substantial withdrawal penalties ranging from 20-30% of the difference between program valuation and fair market value if they exit the program. This guide explains exactly how the maine tree growth tax law works, who qualifies, what’s required, and—critically—how to remove land from the program and calculate withdrawal penalties.

• Maine operates one of the most generous forest tax programs in the nation through its Tree Growth Tax Law, administered by the Maine Forest Service. The program provides an average 70% property tax savings by valuing land based on its ability to grow trees rather than its highest and best use or fair market value.
  
• Eligibility requires 10 acres minimum of forest land managed primarily for commercial forest products production. Landowners must develop a Woodland Resource Action Plan (WRAP) or forest management plan prepared by a licensed forester. The land must be capable of growing trees and committed to forestry use, following the plan’s management prescriptions.
  
• The application deadline is April 1 to qualify for the current tax year. Applications are filed with the local tax assessor along with the approved management plan. Both the Maine Forest Service and local assessor review applications before approval. There is no enrollment fee, but landowners must recertify every 10 years. Maine offers cost-share programs that pay 50% of forest management plan development costs, plus a $200 tax credit every 10 years specifically for plan development.
  
• Withdrawal carries significant penalties: rollback taxes for the period from last certification or preceding 5 years (whichever is longer), plus a conveyance tax of 10% of property value in year one of classification, declining 1% per year for 10 years. Contact the Maine Forest Service here or your local District Forester.

Understanding the Maine Tree Growth Tax Program

The Maine Tree Growth Tax Law, formally codified in Title 36, Chapter 105, Subchapter 2-A (§§571-584-A), establishes a “current use” property tax system allowing eligible forestland to be assessed based on productivity value rather than highest and best use. According to the statute’s purpose section (36 M.R.S. §572):

“It is declared to be the public policy of this State that the public interest would be best served by encouraging forest landowners to retain and improve their holdings of forest lands upon the tax rolls of the State and to promote better forest management by appropriate tax measures in order to protect this unique economic and recreational resource.”

The program implements Article IX, Section 8 of the Maine Constitution, which authorizes the Legislature to permit classification and valuation of forestland based on current use rather than speculative development value.

How valuation works

Instead of taxing forest parcels at their potential value as house lots or commercial sites—which can reach $10,000-$50,000 per acre in many areas—the state values enrolled land based on its annual wood production capacity. Current 2025 Tree Growth valuations set by Maine Revenue Services range from approximately $263-$455 per acre depending on forest type (softwood, hardwood, or mixed wood) and geographic region. A landowner with 50 acres valued at $15,000 per acre for development ($750,000 total) might instead pay taxes on a Tree Growth valuation of just $20,000-$25,000, resulting in annual tax savings of several thousand dollars.

The statute defines forest land in 36 M.R.S. §573(3) as “land used primarily for growth of trees to be harvested for commercial use, but does not include ledge, marsh, open swamp, bog, water and similar areas, which are unsuitable for growing a forest product or for harvesting for commercial use.” Commercial forest products include logs, pulpwood, veneer, wood chips, poles, biomass, fuel wood, Christmas trees, maple syrup, and even wreaths and bough materials.

History of the Tree Growth Tax Law

Maine enacted the Tree Growth Tax Law in 1972 (Public Law 1971, c. 616, §8) following a constitutional amendment passed in 1969 that authorized current-use taxation for forestland. The program emerged from a convergence of economic crisis and conservation imperative that threatened to fragment Maine’s working forests.

The Taxation Crisis

Throughout the 1960s, rising property values—driven by coastal development, recreational land demand, and population growth—created crushing tax burdens for forest landowners. Property tax assessors increasingly valued forestland at “highest and best use,” meaning potential subdivision or development value, rather than sustainable timber production value. A forest parcel that generated perhaps $50-$100 annually per acre from timber harvesting faced tax bills based on $5,000-$10,000 per acre development valuations. This economic pressure forced liquidation sales, clear-cutting without regeneration, and subdivision of large forest holdings into house lots. Maine’s forest products industry—then and now a cornerstone of the rural economy—faced potential loss of the stable land base needed for sustainable timber supply.

Legislative journey

The first Tree Growth bill passed the Legislature in 1971 but was vetoed by Governor Kenneth Curtis, who expressed concerns about the bill favoring large corporate landowners. The Legislature returned in 1972 with a revised version that became law (LD 2018/LD 2034). Floor debates occurred February 18, 23, 24, and March 3, 1972, with Representative Roosevelt Susi (R-Pittsfield) noting that major landowners had “effectively written their own tax policy” through heavy involvement in drafting the legislation.

By 1976, just four years after enactment, 10 million acres had enrolled—74% in Maine’s Unorganized Territory where large timber companies and investment landowners held vast acreages. The rapid enrollment demonstrated the program addressed a genuine crisis: without tax relief, working forests faced conversion to development uses.

Policy Goals and Compromises

The law united traditionally opposing interests. The forest products industry secured tax incentives essential for maintaining timber production economics. Environmental organizations embraced the program as Maine’s most effective anti-sprawl and forest conservation tool. Municipalities received state reimbursement (currently 90% of lost tax revenue) to offset reduced property tax receipts, though this reimbursement has been subject to budget pressures over subsequent decades. The Legislature has amended the Maine Tree Growth tax law 86 times since 1972, addressing enforcement concerns, tightening eligibility, adding forest management plan requirements (1989), and refining withdrawal penalties.

How the Maine Tree Growth Tax Law Actually Works

The maine tree growth tax law operates through a sophisticated valuation system that assesses enrolled forestland based on biological productivity rather than real estate market value. Understanding the mechanics helps landowners evaluate whether enrollment makes financial sense.

The Valuation Formula

Maine Revenue Services calculates annual per-acre values using a multi-step process prescribed in 36 M.R.S. §576. The State Tax Assessor determines the average annual net wood production rate for each forest type (softwood, hardwood, mixed wood) in each county or economic region, based on U.S. Forest Service or Maine Forestry Bureau surveys of average annual growth rates. These growth rates are then reduced by a 10% discount factor mandated in 36 M.R.S. §576-B “to reflect the growth that can be extracted on a sustained basis.”

Next, the assessor determines the average stumpage value—the price standing timber commands on the market before harvest—for each forest type in each region, “taking into consideration the prices upon sales of sound standing timber of that forest type in that area during the previous calendar year.” The assessor multiplies the discounted growth rate by the stumpage value to calculate the value of annual net wood production, then applies an 8.5% capitalization rate (also mandated in §576-B) to determine the 100% valuation per acre.

Practical Example

If softwood forest in a given county grows an average of 0.6 cords per acre annually (after the 10% discount), and stumpage value averages $30 per cord, the annual production value equals $18 per acre. Capitalizing this at 8.5% yields a 100% valuation of approximately $212 per acre ($18 ÷ 0.085). Municipal assessors then adjust this 100% valuation by their local assessment ratio and apply the municipal mill rate to determine actual taxes owed.

Regional Variations:

The State Tax Assessor divides Maine into valuation regions reflecting different forest productivity and timber market conditions. Southern and coastal regions typically show higher per-acre valuations than northern and interior regions due to better growing conditions, higher stumpage prices, and proximity to mills and markets. For 2025, softwood valuations range from roughly $263 per acre in some northern counties to $424 per acre in southern regions; hardwood valuations span approximately $287 to $455 per acre; and mixed wood valuations fall between $275 and $439 per acre depending on location.

Municipal Application of State Values

Once the State Tax Assessor publishes the 100% Tree Growth valuations (annually by April 1), municipal assessors apply their municipality’s assessment ratio—the percentage of fair market value at which the municipality assesses all property—to arrive at the local assessed value. For example, if a municipality assesses property at 90% of 100% valuation, and the state’s 100% Tree Growth softwood value is $350 per acre, the municipal assessor would assign an assessed value of $315 per acre ($350 × 0.90). The municipality then applies its mill rate (property tax rate per $1,000 of assessed value) to calculate the actual tax bill.

Eligibility Requirements: Who Qualifies for Tree Growth

The maine tree growth tax law establishes five core eligibility requirements that landowners must satisfy both at enrollment and continuously throughout their participation.

1. Minimum acreage: 10 forested acres

The statute requires at least 10 acres of forest land meeting the statutory definition: “land used primarily for growth of trees to be harvested for commercial use.” Several important nuances apply to this seemingly straightforward requirement:

• Contiguous parcels: Multiple non-contiguous parcels can collectively meet the 10-acre threshold if owned by the same person or entity and located within the same municipality. A landowner owning three separate 4-acre forest parcels in the same town can enroll all three, totaling 12 acres.
• Structures require exclusions: If your parcel contains a house, camp, or other structure requiring a minimum lot size under local zoning, you must exclude from Tree Growth classification the greater of either 1/2 acre or the municipality’s minimum residential lot size. If your town requires 2-acre minimum lots, you must exclude 2 acres around any dwelling, even though the statute’s base requirement is only 1/2 acre. After this exclusion, you must still have at least 10 forested acres to qualify.
• Non-forested areas: The 10-acre minimum applies to forest land—meaning productive, harvestable timberland. Wetlands, open fields, ledge outcrops, ponds, and other non-forested areas within your parcel don’t count toward the 10-acre threshold, though they can remain part of the enrolled parcel. If you own 15 acres total, but 6 acres are open marsh, you have only 9 forested acres and don’t qualify.

2. Primary use for commercial timber production

This requirement—arguably the program’s most important and most misunderstood—demands that your land be “used primarily for growth of trees to be harvested for commercial use.” Section 574-B(4) requires you to attest during 10-year recertification: “the landowner’s primary use for the forest land classified pursuant to this subchapter is to grow trees to be harvested for commercial use.”

“Primary use” doesn’t mean exclusive use or even majority revenue generation in any given year. The statute explicitly acknowledges multiple uses: “The existence of multiple uses on an enrolled parcel does not render it inapplicable for tax treatment under this subchapter, as long as the enrolled parcel remains primarily used for the growth of trees to be harvested for commercial use.”

What “primary use” means in practice:

• Your management intent and activities must focus on growing and eventually harvesting commercial forest products
• You follow a forest management plan that prescribes silvicultural treatments and harvest schedules
• You conduct periodic timber harvests consistent with sustainable forestry practices (though annual harvesting isn’t required)
• Forest income, over time, reflects genuine commercial timber production, not nominal harvests designed merely to maintain program eligibility

What doesn’t disqualify you:

• Recreational uses like hunting, hiking, snowmobiling, or cross-country skiing
• Maple sugaring operations producing syrup for sale
• Harvesting wreaths, boughs, cones, or other non-timber forest products
• Wildlife habitat management integrated with timber production
• Occasional years without harvest activity, if consistent with your management plan
• Leasing land for hunting or recreation, as long as lease income doesn’t exceed the sustained timber growth value (see §574-A’s recreational lease limitations)

3. Forest management and harvest plan

Since 1989, enrollment has required a forest management and harvest plan meeting the definition in 36 M.R.S. §573(3-A): “a written document that outlines activities to regenerate, improve and harvest a standing crop of timber. The plan must include the location of water bodies and wildlife habitat identified by the Department of Inland Fisheries and Wildlife.”

Plans must be:

• Prepared by a licensed professional forester, or prepared by the landowner and then reviewed and certified by a licensed professional forester as consistent with sound silvicultural practices
• Site-specific to your parcel, addressing its particular forest types, terrain, soils, water features, and wildlife habitat
• Forward-looking, including recommendations for timber stand improvement, harvesting schedules, and regeneration activities over a 10-year planning period
• Updated every 10 years, with recertification by a licensed forester confirming the plan remains current and you’re following its prescriptions

The plan is confidential—it’s not a public record, though you must provide it to the municipal assessor for review to verify it meets statutory requirements. After review, the assessor must return your plan upon request.

4. Application and mapping requirements

You must file a signed application with your municipal assessor by April 1 of the year you first seek classification. The application form, prescribed by the State Tax Assessor, requires you to:

• Identify the land to be enrolled by parcel identification
• List the number of acres of each forest type (softwood, hardwood, mixed wood)
• Provide a land classification map showing forest type locations
• Represent under oath that the land is used primarily for commercial timber production

Municipal assessors may require updated applications at their discretion, with 120 days’ notice to landowners.

5. Following your forest management plan

Enrollment isn’t a one-time event—it’s an ongoing commitment. The statute requires landowners to “manage the land according to accepted forestry practices as defined by the Maine Forest Service and in accordance with the plan.” If the municipal assessor or State Tax Assessor suspects you’re not following your plan—perhaps through overharvesting without regeneration, allowing stands to become severely understocked, or conducting harvests inconsistent with plan recommendations—they can request assistance from the Maine Forest Service Director under 36 M.R.S. §575-A.

The Director or designee may enter and examine your forest land to determine compliance. If you’re found not following the plan, the assessor can remove your land from the program and assess withdrawal penalties.

Enrollment process: how to get your land into Tree Growth

Enrolling forestland in the maine tree growth tax law requires several steps, typically taking 2-4 months from initial decision to final classification.

Step 1: Determine preliminary eligibility (1-2 weeks)

Before engaging a forester or incurring costs, verify your parcel meets basic requirements:

• At least 10 forested acres (excluding non-forested areas and required structure setbacks)
• Primary management intent is commercial timber production
• Willing to commit to 10-year management planning and recertification cycles
• Understanding that withdrawal penalties apply if you remove land from the program

Step 2: Hire a licensed professional forester (immediate)

Maine law requires your forest management and harvest plan be prepared by or certified by a licensed forester. The Maine Forest Service maintains a registry of licensed foresters, or you can contact the Maine Forest Products Council for referrals. Many consulting foresters charge $400-$1,200 for initial Tree Growth enrollment plans, depending on parcel size and complexity.

The forester will:

• Conduct an on-site forest inventory, identifying tree species, sizes, volumes, and forest health
• Delineate forest types (softwood, hardwood, mixed wood) and create a classification map
• Assess soils, topography, water features, and wildlife habitat
• Develop management recommendations for the next 10 years, including any harvest prescriptions
• Prepare the formal written plan meeting statutory requirements
• Certify the plan’s consistency with sound silvicultural practices

Step 3: Submit application to municipal assessor (by April 1)

You must file your application by April 1 of the year you want classification to begin. The application packet includes:

• Completed Tree Growth application form
• Forest management and harvest plan
• Land classification map showing forest type locations and acreages
• Any required deed information or ownership documentation

For properties in Maine’s Unorganized Territory, submit applications to Maine Revenue Services Property Tax Division rather than a municipal assessor.

Step 4: Assessor review and classification determination (April-June)

The assessor reviews your application to determine:

• Does the parcel meet the 10-acre minimum?
• Is the forest management plan adequate and properly certified?
• Does the land use conform to “primarily for commercial timber production”?
• Is the classification map accurate and complete?

The assessor classifies your land by forest type and may request additional information or clarification. If denied, the assessor must state reasons and provide an opportunity to cure deficiencies.

Step 5: Valuation and tax bill issuance (July-October)

Once classified, the assessor applies the appropriate Tree Growth values (published annually by Maine Revenue Services by April 1) to your acreage by forest type. The assessor adjusts the 100% Tree Growth values by the municipality’s assessment ratio, then applies the municipal mill rate to calculate your property tax bill.

Your new Tree Growth-based tax bill typically arrives with your municipality’s regular tax bills in July, August, or September, depending on local billing cycles. The tax savings appear immediately—you’ll pay tax on the Tree Growth valuation rather than fair market value starting in your first enrolled tax year.

Ongoing requirements: maintaining Tree Growth classification

Tree Growth enrollment isn’t passive—it requires active compliance with several ongoing obligations throughout your participation.

Annual requirements:

Pay property taxes: Obviously essential. While Tree Growth dramatically reduces your valuation, you still owe property taxes on that reduced valuation. Nonpayment of property taxes can trigger tax lien foreclosure processes regardless of Tree Growth status.

Maintain primary use for commercial timber production: Your land must continue meeting the “primary use” test every year. Material changes in land use—converting forest to fields, allowing significant recreational uses, ceasing active forest management—can trigger withdrawal.

Report land use changes within 90 days: Section 574-C requires that “within 90 days after any change of use or ownership of classified land, the owner shall give the assessor written notice of that change.” Changes include:

• Constructing buildings or structures
• Clearing land for agriculture, roads, or other non-forest uses
• Material changes in forest management practices
• Transfers of ownership

10-year requirements (every 10 years):

Update forest management plan: Every 10 years from your initial enrollment date, you must have your licensed professional forester update and recertify your forest management and harvest plan. The updated plan must:

• Assess current forest conditions
• Evaluate whether previous management recommendations were followed
• Provide prescriptions for the next 10 years
• Be certified by the forester as consistent with sound silvicultural practices

File recertification documentation: Along with the updated plan, you must file a sworn statement attesting that “the landowner’s primary use for the forest land classified pursuant to this subchapter is to grow trees to be harvested for commercial use.”

Timing is critical: The assessor will send you a 120-day notice when your 10-year update is due. If you fail to file the updated plan and attestation within 120 days of the due date, section 574-B(3) imposes a $500 penalty per month until you comply, up to a maximum penalty equal to 50% of the previous year’s tax assessment on the enrolled land. After that maximum penalty is reached, the assessor will withdraw your land from the program.

Timber harvesting requirements:

The statute doesn’t mandate that you harvest timber every year, or even every decade. Your forest management plan determines appropriate harvest timing based on stand conditions, markets, and your objectives. However, you must eventually harvest timber—if you never harvest and never intend to harvest, you’re not using the land “primarily for growth of trees to be harvested for commercial use.”

When you do harvest:

• Follow the recommendations in your forest management plan
• Ensure harvesting complies with Maine Forest Service regulations, including Shoreland Zoning and Statewide Standards for Timber Harvesting
• Consider notifying your assessor before major harvests to maintain good communication
• Regenerate harvested areas according to plan recommendations
• Keep records of harvest dates, volumes, and revenues

Ownership transfers:

When enrolled land changes ownership, the new owner can continue Tree Growth classification by filing a continuation application within one year of purchase (36 M.R.S. §574-B(3)). Until the new owner files this continuation documentation, timber may not be harvested from the property. If the new owner doesn’t file within one year, the land automatically withdraws from the program and withdrawal penalties apply—assessed against the seller, not the buyer.

Many real estate purchase and sale agreements for Tree Growth parcels include provisions requiring the buyer to file continuation documentation, allocating responsibility for any withdrawal penalties if the buyer fails to do so.

Withdrawing land from Tree Growth: penalties and calculations

Eventually, many landowners need or choose to remove land from Tree Growth classification—whether to build additional structures, subdivide for sale, or simply opt out of program requirements. Understanding withdrawal penalties is essential for informed decision-making.

When withdrawal occurs:

Withdrawal happens either voluntarily (you choose to remove land from the program) or involuntarily (the assessor determines you no longer qualify). Common withdrawal triggers include:

Voluntary withdrawals:

• Building structures (houses, camps, garages) and not maintaining 10 forested acres after required exclusions
• Subdividing enrolled parcels and selling portions
• Converting forest to other uses (fields, solar installations, gravel pits)
• Choosing to exit the program and return to fair market value taxation

Involuntary withdrawals:

• Failure to update forest management plan within 120 days after maximum penalties reached
• Land use changes inconsistent with commercial timber production
• Recreational lease income exceeding sustainable timber growth value (§574-A)
• Not following forest management plan recommendations
• Ceasing commercial timber use

Penalty calculation method (36 M.R.S. §581):

When land withdraws from Tree Growth, the law imposes a penalty calculated as the greater of two methods:

Method 1: Five years of back taxes plus interest

Calculate the taxes that would have been owed over the past five tax years if the land had been valued at fair market value, subtract the Tree Growth taxes actually paid during those five years, and add interest (currently set by the state treasurer, typically 3-7% annually).

Example calculation:

• Fair market value: $20,000/acre × 50 acres = $1,000,000
• Five-year total tax at fair market value: $50,000
• Five-year total tax actually paid under Tree Growth: $3,000
• Difference: $47,000
• Interest on back taxes: approximately $8,000
• Method 1 penalty: $55,000

Method 2: Percentage of valuation differential

Calculate the difference between the land’s fair market value and its Tree Growth 100% valuation, then apply a percentage based on enrollment duration:

• Less than 10 years enrolled: 30% of the differential
• 10-15 years enrolled: 25% of the differential
• More than 15 years enrolled: 20% of the differential

Example calculation (property enrolled 12 years):

• Fair market value: $1,000,000
• Current Tree Growth 100% valuation: $20,000
• Differential: $980,000
• Penalty percentage: 25% (10-15 years enrolled)
• Method 2 penalty: $245,000

The assessor must use whichever method produces the greater penalty. In this example, Method 2’s $245,000 penalty far exceeds Method 1’s $55,000 penalty, so the landowner owes $245,000.

Additional 25% penalty surcharge for unreported changes:

If you withdraw land without properly notifying the assessor—or if the assessor discovers you’ve been using the land in ways incompatible with Tree Growth for some time before withdrawal—section 581 adds an additional 25% surcharge to the withdrawal penalty. Using our example, the $245,000 penalty would increase to $306,250 with the surcharge.

This substantial penalty makes timely reporting of land use changes essential. If you’re planning changes that may affect eligibility, notify the assessor before implementing them.

Partial withdrawals:

You don’t have to withdraw your entire enrolled parcel. Partial withdrawals allow you to remove specific areas while keeping the remainder enrolled. Common scenarios:

• Building a house on a 50-acre parcel: Withdraw 2 acres (or your municipality’s minimum lot size) around the building site; keep the other 48 acres enrolled if they still exceed 10 forested acres
• Subdividing 100 acres: Sell a 10-acre building lot (triggering withdrawal penalty on those 10 acres) while keeping the remaining 90 acres in Tree Growth
• Creating a gravel pit on 5 acres of a 60-acre parcel: Withdraw the 5 acres for commercial gravel operation; maintain Tree Growth on the other 55 acres

The withdrawal penalty applies only to the acres actually withdrawn—calculated using the fair market value and differential for those specific acres, not the entire parcel.

Timing and payment:

Withdrawal penalties become due in the tax year following the withdrawal event. The municipality adds the penalty to your regular property tax bill. If the penalty is substantial—often tens or hundreds of thousands of dollars—you may negotiate a payment plan with the municipality, though this is at their discretion.

Special withdrawal situations:

Sale creating substandard parcels: If selling property enrolled in Tree Growth creates a parcel smaller than 10 acres, that undersized parcel automatically withdraws from the program. Importantly, §581 assesses the withdrawal penalty against the seller (transferor), not the buyer. This prevents landowners from subdividing enrolled parcels into small lots and passing withdrawal penalties to unwitting purchasers.

Understanding compliance and avoiding common mistakes

Many landowners inadvertently jeopardize their Tree Growth enrollment through misunderstandings about program requirements. These compliance principles help you maintain good standing and avoid penalties.

The “primary use” test remains central: The single most important ongoing requirement is that your land continues to be used “primarily for growth of trees to be harvested for commercial use.” The statute doesn’t prohibit multiple uses—hunting, hiking, maple sugaring, gathering boughs and cones all comply with the definition of commercial forest products. But if recreational lease income eclipses timber production value, or if you stop managing the forest for eventual harvest, you’ve shifted away from primary commercial timber use and face potential withdrawal.

Section 574-B(4) requires landowners to attest every 10 years during recertification that “the landowner’s primary use for the forest land classified pursuant to this subchapter is to grow trees to be harvested for commercial use.” The statute explicitly notes: “The existence of multiple uses on an enrolled parcel does not render it inapplicable for tax treatment under this subchapter, as long as the enrolled parcel remains primarily used for the growth of trees to be harvested for commercial use.”

Common mistakes that trigger withdrawal:

Failing to update management plans: The 10-year update cycle is non-negotiable. When your plan expires, assessors send 120-day notices, but ultimately it’s your responsibility to track the timeline. Missing the deadline starts the $500 penalty progression described earlier.

Not filing continuation when purchasing enrolled land: New owners must file continuation documentation within one year of purchase and cannot harvest timber until filing is complete (§574-B(3)). Many buyers overlook this, especially when purchasing at foreclosure sales or estate settlements.

Building structures without proper exclusions: Constructing a house, camp, or other structure requiring minimum lot size mandates excluding at least 1/2 acre (or the required minimum lot size, whichever is greater) from Tree Growth classification. Failing to file revised classification maps showing the exclusion constitutes non-compliance.

Unreported land use changes: Converting forest to fields, installing extensive road networks, creating commercial gravel pits, or other material changes must be reported to the assessor immediately. The 25% penalty surcharge for unreported changes makes honesty essential.

Allowing stocking to fall below acceptable levels: While the statute doesn’t specify precise stocking thresholds, your forest management plan does. Allowing stands to become severely understocked through excessive harvest, damage, or neglect without following regeneration recommendations can support assessor determinations that you’re not following the plan—grounds for withdrawal.

Best practices for staying compliant: Maintain regular contact with your licensed forester, ideally conducting informal check-ins every 2-3 years between formal 10-year recertifications. Keep careful records of all timber harvests, noting dates, volumes, and purchasers to demonstrate active forest management. Mark your calendar prominently for the 10-year recertification deadline—set reminders at 9 years so you have ample time to schedule the forester visit and prepare documentation. When purchasing enrolled property, make plan continuation a closing contingency and file required documentation immediately after closing. If considering subdivision, consult with both your forester and assessor before proceeding to structure the division to minimize withdrawal penalties and maintain enrollment on remaining acreage.

Working with municipal assessors: Assessors aren’t adversaries—they’re administrators charged with proper program implementation. If you’re uncertain whether a planned activity affects your enrollment, asking the assessor before proceeding prevents problems. Most assessors appreciate proactive communication and can clarify requirements, explain valuation methodology, and work with you on compliance issues. For parcels in unorganized territory, contact Maine Revenue Services Property Tax Division (207-624-5611) with questions.

Balancing Tax Benefits With Long-Term Forest Stewardship

The maine tree growth tax law delivers substantial financial benefits—often reducing annual property tax bills by 90-95% compared to fair market valuations—but demands genuine commitment to forest management and commercial timber production. Since 1972, this program has protected over 11 million acres of Maine’s working forests from development pressure while ensuring a stable land base for the forest products industry that remains vital to the state’s rural economy.

For landowners managing 10 or more forested acres, enrollment makes economic sense if you intend to maintain the land in forestry for at least 10-15 years. The 20-30% withdrawal penalties ensure short-term enrollment purely for temporary tax advantages costs more than it saves. But for those truly committed to stewardship—managing forests for sustainable timber production, wildlife habitat, and long-term ecological health—the program aligns financial incentives with conservation values.

The statutory framework in Title 36, §§571-584-A establishes clear requirements: 10-acre minimum, forest management plan prepared and certified by a licensed forester, 10-year recertification cycles, primary use for commercial timber production, and reporting obligations for land use changes. The withdrawal provisions in §581 impose penalties calculated as the greater of either five years of back taxes with interest or 20-30% of the fair market value differential, with the percentage decreasing for longer enrollment periods.

Understanding these mechanics—eligibility criteria, ongoing compliance requirements, valuation methodology, and withdrawal procedures—enables informed decisions about whether the maine tree growth tax law serves your land management objectives. The program has evolved substantially over five decades through 86 statutory amendments, adapting to changing forestry economics, addressing enforcement challenges, and balancing landowner flexibility with program integrity. Whether you’re considering initial enrollment, maintaining existing classification, or contemplating withdrawal, consulting with a licensed professional forester and your local assessor ensures you navigate the program successfully while contributing to Maine’s legacy of productive, sustainably managed forests.

For detailed guidance, refer to Maine Revenue Services Property Tax Bulletin No. 19, the complete statutory text in Title 36, Chapter 105, Subchapter 2-A, and Maine Forest Service resources. Contact Maine Revenue Services Property Tax Division at (207) 624-5600 or prop.tax@maine.gov, or Maine Forest Service at (207) 287-2791 for program-specific questions.