It’s no secret that working waterfront property is a hot commodity these days, and a critical need for commercial fishing. From wharves to gear storage space, fishermen need affordable and consistent access to waterfront land and property. However, rising property values (which increase tax valuations) are putting intense pressure on these small businesses. The question becomes: how can we support property owners to keep working waterfronts available to fishermen?
In response, a team of invested organizations, individuals, and representatives worked together to craft and pass LD 2162, a bill providing tax relief for owners of working waterfront properties through improvements to the Current Land Use Program of the Maine Revenue Service. This team was coordinated by the Coastal Access Strategy Exchange (CASE), a network of nonprofits, harvesters, municipalities, and legislators working to preserve and expand the footpaths, wharves, piers, and other working waterfront locations that provide essential access points to coastal fisheries and waters of the Gulf of Maine, supporting the economic well-being of fishing families, water-dependent businesses, and coastal communities.
Emily Coffin, MCFA’s Seafood & Fisheries Policy Coordinator, said that "working waterfront is integral to our fishing communities as well as our state's economy, history, and character. There's no one solution to saving our waterfront infrastructure, but we hope that by bringing the working waterfront program in line with the other current use programs we can reinforce the value of Maine's working waterfront and protect our iconic coastline for generations to come."
What is Current Land Use Taxation?
Maine has four primary Current Land Use Programs that offer property owners tax reductions in assessed value based on the specific use of their land. These programs are designed to support the preservation of certain types of land, and each has specific eligibility requirements and potential penalties if the land use changes. The four programs are farmland, open space, tree growth, and working waterfront. While this is a state tax relief program, enrollment in these programs is managed at the municipal level.
The Current Land Use Program for working waterfront supports properties that are used for commercial fishing activities, which this legislation defines as including both commercial fishing and aquaculture production.
Why did the program need to be updated?
While working waterfront has been part of the Current Land Use Program since 2007, enrollment has been very low. In 2019, MCFA produced a report titled The State of Maine’s Working Waterfront. Among the many concerns addressed in this report, we elevated the need to distinguish between the types of working waterfront necessary for commercial fishing, as well as the fact that the Current Land Use Program for working waterfronts was the least utilized tax reduction program, and could benefit from an update. In that report, we shared that low enrollment is likely due to the minimal tax reductions the program as written provided, and real concerns about the penalties incurred if no longer used as working waterfront, whether temporarily or long-term – even if due to injury or other reasonable cause.
In 2024, together with Tidal Bay Consulting and with support from CASE and Brennan Lauer, Fisheries Policy Coordinator for the Maine Shellfish Learning Network, MCFA worked with Representative Dan Ankeles (Brunswick) to amend the current use taxation policy in Maine to be more in line with other programs. This group helped compile L.D. 2162: An Act Regarding the Current Use Valuation of Working Waterfront Property, which outlined several amendments to the program that will greatly improve tax relief and other support for working waterfront property owners. These amendments were supported unanimously by the Maine Legislature.
As a property owner, what do I need to know?
The regulations were effective on August 9, 2024. If you’re already enrolled in this program, the changes will automatically apply for calendar year 2025. If you aren’t enrolled, you will need to apply at your town municipal office before April 1, 2025 to see an impact on your 2025 taxes. You can read more online under the Maine Revenue Service's Current Land Use Program page. (Please note that at the time this blog was posted, the MRS has not yet updated their website to reflect the language in the revised regulations.)
What’s changed?
Updated definition
In prior versions, the definition of “working waterfront land” was vague and could be interpreted any number of ways. The new bill gets more precise about this definition, which helps landowners, municipalities, and potential buyers ensure they are acting in support of commercial fishing activities. In particular, the language now acknowledges that gear maintenance and storage are critical aspects of commercial fishing activity.
Increased tax reduction to rates in line with other Current Land Use Programs, and a new provision regarding right-of-ways and easements for commercial intertidal harvesters.
The group was pleased that we could align rate reductions with similar programs and make it more consistent across industries.
Land used predominantly as working waterfront (90% or more for commercial fishing activity) is now eligible for a reduction of 30%.
Land used primarily as working waterfront (50%-89% for commercial fishing activity) is now eligible for a reduction of 20%.
Working waterfront land that is subject to a legally binding right-of-way or easement that permits access to intertidal land for commercial fishing activities is eligible for the same reductions, and an additional reduction of 10%.
Amended penalties
According to the Center for Disease Control, commercial fishing is one of the most dangerous civilian jobs in the United States, with a high injury rate. This makes penalties particularly challenging for fishing businesses. Previously, penalties were imposed if a fisherman did not use the property for fishing for a year. Given the high injury risk, this was a significant burden. The regulations have now been amended to extend this period to two years. The regulations also include the ability to request a delay in payment of other penalties (due to change of use) of up to two years.
Updated reporting requirements
Under the revised regulations, the State Tax Assessor must submit a biennial report to the Legislature’s Taxation Committee, and make an information bulletin on current use laws publicly accessible. This enhanced reporting provides a solid inventory of protected properties by municipality. This would help communities understand their working waterfront resources, especially public access points.
We’re proud to have been a part of this important work to make working waterfront land more affordable for Maine’s commercial fishing industry. Collaborative efforts like this are a critical strategy in ensuring that fishermen and aquaculturists can continue to do what they do best – bring local seafood to shore and into our communities. Special thanks to Representative Dan Ankeles, the co-sponsors of this bill, and all CASE members, who we worked with to make this possible. To continue this initiative, CASE and MCFA will provide outreach and education materials to coastal municipalities and working waterfront property owners this fall and winter.
