Council mulls ads favoring local sales tax Legality of using public funds for political goals questioned

BANGOR – The City Council’s plans to spend thousands of dollars to advertise in local media in support of a local-option sales tax could face some legal hurdles, with critics questioning the use of public funds for political purposes.

The proposal, outlined Monday by the city’s new business and economic development director, Jonathan Daniels, fell on some eager ears during a workshop session before Monday’s City Council meeting.

“If we spend $5 million on advertising to build a $30 million auditorium, it would still be worth it to the taxpayers,” City Councilor David Nealley hypothesized, referring to the estimated $45 million price tag if the city were forced to borrow the money and use the property tax to repay the bond over 20 years.

The City Council took no action on the proposal, which will be reviewed by the city’s attorney to determine if the marketing effort legally could be funded with public dollars. The council’s Strategic Issues Committee is set to consider the matter next week.

At Monday’s workshop session, Douglas Clendenning of Bangor questioned the appropriateness of using taxpayer money to fund the ad campaign, initial estimates for which approach $10,000.

“Not every Bangor taxpayer supports this,” Clendenning said after the City Hall session, adding that previous marketing efforts for political purposes have been limited to fact sheets for voter consideration.

The advertising campaign, dubbed “Keep the Tradition Alive: A New Auditorium for a New Century,” would run in local newspapers as well as on radio and television stations. The marketing effort, which would run during next month’s Eastern Maine basketball tournament, would ask people to support the local-option sales tax by contacting their legislators.

The ads, would mark the city’s largest financial investment specifically in support of the local-option sales tax, which is undergoing changes after the Legislature’s Taxation Committee voted 7-5 earlier this month against the proposal.

“The window is closing,” City Council Chairman Michael Crowley said of the necessity of winning public support for the latest incarnation of the legislation, titled the Debt Avoidance Act.

Crowley, in support of the ad campaign, said he hoped it would correct what he perceived to be misconceptions about the current proposal. The plan has won some high-profile support of late, including an endorsement in Gov. Angus King’s State of the State address last week.

If passed by state lawmakers, the legislation would allow a municipality or municipalities to enact a local sales tax of up to 1 percent for a specific project if voters in that community approved at a local referendum. Before such a vote is taken, state officials must certify the specific project as being of regional significance.

The tax would be in effect for no more than five years, after which time a municipality could not ask voters to approve another local tax for three years. The tax also would be capped at $50 per purchased item.

Bangor officials see the tax as a fair way to pay for a replacement for the 47-year-old auditorium, home to among other events the popular Eastern Maine basketball tournament. Such a tax would bring in about $6 million each year to the city, officials estimate – enough to pay for a new facility without borrowing.

But while the Bangor council and its urban counterparts generally are supportive of the tax option, not everyone – most notably rural lawmakers – is on board.

Opponents cite Maine’s already high tax burden as a reason not to adopt a new tax – optional or not. They also say the plan could set up border wars between towns, with shoppers traveling to buy items in towns without the tax.

A version of the proposal likely will go to the floor of the House late in the session.