November 08, 2024
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Local tax rejected by panel Supporters look to keep measure alive

AUGUSTA ? The Legislature’s Taxation Committee on Friday narrowly defeated a plan that would allow local governments to adopt a 1 percent sales tax to fund regional projects.

The committee’s 7-5 rejection ? largely along rural-urban lines ? dealt a severe blow to the latest incarnation of the plan, which had gained some notable support in past weeks from former opponents, including Gov. Angus King and local business leaders.

While supporters hope to resurrect the bill on the House floor late in the session, the committee’s stamp of disapproval showcased the historic rural resistance to the plan, which Bangor officials had hoped could fund a new $30 million auditorium to replace the aging Bass Park complex.

Committee member Rep. Joseph Perry, D-Bangor, said after the work session that he still held out hope for the bill, which, because of the close committee vote, would be debated on the House floor later in the session.

City officials looked to put the best possible spin on the otherwise disappointing outcome.

“At worst, I consider it a moral victory,” said Bangor City Manager Edward Barrett, noting that previous efforts to pass similar legislation met much quicker demises. “I think we’ve gained some support and we’ll keep moving forward with this.”

“It’s not going to help anyone in Buckfield,” said committee member Rep. Rosita Gagne, a Democrat who represents the small town in rural Oxford County.

The bill, titled the Debt Avoidance Act, would allow municipalities ? with voter approval at local referendum – to impose up to a 1 percent sales tax on top of the 5 percent state sales tax on goods and services bought in that community. The revenue from the tax could be used only for a specific “project of regional significance,” such as an auditorium or school.

Gagne said while larger communities with substantial retail sectors, such as Bangor and Portland, could vote to impose the new tax, those from smaller surrounding communities – who have little choice but to shop in the nearby cities – would have to pay the tax without a vote.

“It deserves a full hearing,” said Perry, noting that the absent committee member, Rep. Bernard McGowan, D-Pittsfield, also was expected to support the bill, which was backed by two of the committee’s three senators.

Perry called the rural opposition unfounded and stressed to the committee that it was not voting for a new tax, but to allow communities to make that choice for themselves.

“At the ballot box at the Abraham Lincoln School is where I’ll be voting for a new tax,” Perry said. “Maybe it’s not right for all communities, but for ours, it is.”

Supporters had argued that the local sales tax could provide some much-needed relief for larger communities that rely on their high property taxes to maintain their extensive – and expensive – infrastructures used by those from throughout the region.

Much of the bill’s late support came as the result of several concessions, including a $50 cap on items costing more than $5,000 and a five-year limit on the duration of the tax.


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