Blaine House hopefuls talk property tax relief

BANGOR – Municipal officials packed a gubernatorial forum Thursday in hopes of gaining some insight into how the candidates could provide much-needed property tax relief to Maine communities hit hard by rising costs.

During the 66th annual meeting of the Maine Municipal Association at the Bangor Civic Center, only Green Independent Party candidate Jonathan Carter came close to providing the kind of details the town and city administrators were seeking. In fact, Carter has signed on to a proposal similar to one advanced by the MMA to broaden the state sales tax by extending it to goods and services currently not covered under Maine law.

Maine’s status as possessing the third-highest property taxes in the country as a percentage of personal income is doing little to enhance its appeal as a destination for new businesses and the jobs that accompany them. Carter told the crowd of more than 300 that his plan to broaden the sales tax would raise a half-billion dollars in new revenue that could be used to increase revenue-sharing allocations and reduce the costs of local education to Maine communities.

“My proposal to increase state aid for local education to 55 percent [from 44 percent] and double the Homestead Exemption Act will reduce local property taxes by 15 to 20 percent,” Carter said. “And that will be a great step forward.”

The Lexington Township resident also wanted to explore the use of some incentive programs being developed by the MMA to encourage communities to work together wherever possible to reduce duplication of costs by pooling resources.

“Therefore property taxes could come down even more,” he said. “It’s critical that we do this.”

Carter was joined on stage Thursday by Republican gubernatorial candidate Peter Cianchette of South Portland and John Baldacci, a Bangor Democrat who is serving his last term as Maine’s 2nd District congressman. John Michael, an independent state senator from Auburn who also is running for governor, did not attend the event.

Baldacci reminded the municipal officials that as a former member of the Bangor City Council, he understood the importance of reimbursing communities with the educational dollars they need to run their school systems. Baldacci said he was anxious to review the findings of a comprehensive report on property tax that should provide critical information to address rising taxes. He also supported using the buying power of the state for costly items such as firefighting vehicles to achieve maximum savings for Maine towns. Like Carter, Baldacci also encourages school systems to work together to reduce administrative costs.

“I know firsthand, from being on the [Bangor City Council] and working with many of you, the burden on property tax payers,” Baldacci said. “It is the most onerous tax in the state, whether it’s the personal property tax on business equipment and machinery or whether it’s on homeowners. It’s driving older people from their homes and it’s driving younger people out because of the lack of affordable housing.”

Persuading cities and towns to collaborate to find administrative savings was echoed by Cianchette, who promised to “work with the communities to try and find ways to lower costs.”

“How can we work together to find a way to use the dollars coming in to benefit you and lower property taxes?” he asked. “We must work together to find a solution. … We need spending reform to maintain the growth of the state government. Once we’ve done that, I can’t wait to engage in a debate about comprehensive state tax reform.”

Local option sales taxes, another proposal of interest to municipal officials, received mixed reviews from all three candidates. Such a tax has been proposed to pay for such projects as a new civic center in Bangor, but a measure to allow it was defeated by the Legislature this session.

Cianchette said he would have to oppose a local option sales tax simply because he could not “support a policy that would increase the tax burden on Maine people.”

Carter said he didn’t care for the name “local option sales tax,” but that he could support a local “surcharge” for capital improvements as long as its purpose was clearly stated and its duration was limited.

Baldacci said he would like to see the results of an overhaul of the tax code before experimenting with any other revenue-enhancing plans. In the absence of information discouraging the proposal, Baldacci said, he could support a local option sales tax for local or regional projects and capital improvements.