Using Tax Policy for Access

The tool of taxation can be used to encourage public access in two major ways.

Taxes on the sale of land, or on certain activities at places where the public enjoys the beach or shore, can raise money for the acquisition of additional access rights.
Tax incentives can encourage particular uses deemed socially or economically important, or discourage uses that would inhibit coastal access.

How can taxes be used to generate funding for access?

Taxes can be used as a means of raising funds that the public can invest in the acquisition of public access through voluntary conveyance/acquisition tools or through eminent domain. A land gains tax, real estate transfer tax, impact fees (though not technically a tax), or tax increment financing are examples of such taxation strategies.

How can tax incentives be used for access?

Reductions in a landowner’s taxes can be used as an incentive for allowing public access or to discourage uses that inhibit such access. Tax incentives may include income tax deductions, lowered property taxes, lowered estate taxes, avoidance of capital gains taxes, and gained investment interest. They might also include a current use taxation structure for working waterfronts that provide access for commercial fishing activities

What tax-related programs exist that can be used for access?

The Current Use Program for Working Waterfronts offers owners of commercial fishing-related property a reduction in their assessed value based on certain criteria. Maine’s Open Space tax law is designed to prevent the forced conversion of open space land to more intensive uses as a result of economic pressure. Parcels enrolled in Open Space are assessed at current use with additional reductions possible for those parcels allowing public access. For more information about these programs, please see Maine Revenue Service.

Case Studies

See successful examples of acquisition used to provide access.

What programs exist to acquire access?

Click here for more information.