BAR HARBOR – With three members absent, the town council was unable to reach a consensus at its meeting Tuesday night on a $49,000 proposal to hire a consultant to perform a more accurate tax evaluation of the property owned by Bar Harbor’s business community.

“I don’t like the `Big Brother’ aspect of this,” said councilor Matt Horton, speaking against the more stringent inspection and taxation of business people.

Town assessor Steve Weed said that the value of personal business property such as furnishings in motels or ovens and other appliances in restaurants, has been assessed on an “honor system” basis, which leads to inequity.

“What happens is the naive people of goodwill go in and report their assets,” said councilor Lou Blancato.

Thus, dishonesty is rewarded with lower tax bills, and the system is biased, he said.

Whether deceitfully or in ignorance of property tax regulations, as many as 25 percent of Bar Harbor business people have likely reported their assets incorrectly in past years, Weed said.

“If I was only assessing 75 percent of the real estate in town, I’d probably get shot,” he said.

And a seasonal business community like Bar Harbor is particularly difficult to assess because the number and scope of businesses changes each summer, said Town Manager Dana Reed.

However, Bar Harbor’s current system meets the letter, if not the spirit, of the Maine law requiring municipalities to tax the personal property of businesses.

“We are doing it now,” Horton said. “Maybe it’s not the most efficient way, but the idea of a field inspection [of businesses] troubles me.”

Reed recommended that the town use a portion of the surplus funds previously set aside for capital improvements to fund hiring G&K Associates to inspect Bar Harbor businesses and make the one-time re-evaluation of their personal property. The results would be used to determine fiscal year 2002 property tax bills, he said.

In most cases, such an evaluation results in an increase of the town’s property tax base. Boothbay Harbor recently hired G&K to complete a re-evaluation, and their personal property tax base grew from $3.2 million to $7 million, Weed said.

Such an evaluation would include computers and other property used in home businesses, but, per Maine tradition would not include commercial marine properties such as boats and lobster traps, Weed said.

The council vote was a tie -2 for, 2 against – and thus, the measure failed. However, the council agreed to inform business owners and revisit the proposal at its next meeting, scheduled for Dec. 5.

In other business;

Council members approved a one-year extension of a conservation closure of the area between Hadley Point and Salisbury Cove to protect the clam population.

Although an October site survey showed that the number of clams in the conservation area has increased, the size of individual clams has not, said Harbor Master Charlie Phippen.

Constantly harvesting and releasing small clams that do not meet legal size requirements can lead to high mortality in the population, he said. The area will remain closed until January 2002.

If the town council is successful in its bid to acquire the Bar Harbor Water Co. through eminent domain, water company employees will join the town roster with their seniority, sick days and vacation time intact, according to a unanimous vote of the council. Some residents have given as many as 27 years of labor to the water company and deserve to retain the salaries they have earned, Reed said.

Councilors supported a proposal to create a dispatch and information center for the Island Explorer bus system within the town-owned brick building on the Village Green currently leased to the Islands Association of Museum and Historical Societies.

Tom Crikelair, speaking for Downeast Transportation, said that the organization has applied for federal funds to refurbish the building.

Downeast Transportation has also initiated discussion with the Islands Association about taking over their $1 per year lease, which is scheduled to end in 2004 but may be terminated by either party with six months’ notice. The council agreed to contact the Islands Association about scheduling a possible termination of their lease at a future council meeting.