Tax reform is the top issue our Legislature needs to resolve in the session ending this week. This year, more so than in many years past, achieving tax reform is critical. The impacts of current taxation decisions can either assist or hinder the communities in which we live.

As we are faced with the Maine Municipal Association’s referendum [1A] to require the state pay its long- standing, but unachieved goal of 55 percent for school funding; and the Palesky Tax Cap, we are confronted with some important realities about our communities, our responsibilities, and quality of life.

A majority of people want very much the same things: excellent schools and universities, maintained roads, health care, protected environment, safety through a good police force and emergency services. And people wanted to be sure that more vulnerable citizens got the help they need.

Government should take care of many of our societal needs; it’s the piggy bank where we tithe some of our income to provide a cost-effective way to pay for those roads, schools, environment, fire and police protection. If we were to contract for these things entirely on our own, family by family, it would cost a veritable fortune, and would be wasteful and inefficient at best, and anti-democratic at least.

Taxes are the dues we pay to live in a civilized society; it is a membership, if you will, to the great democratic experiment in which we have the honor of participating. Until somewhat recently we have enjoyed the best health care, phenomenal schools, glorious national parks, a cleaner environment and an intricate and fairly evolved infrastructure. But thatis changing, quickly.

Trickle-down deficits:

Our local communities are the drain down which all the other deficits run. The federal government mandates to states; No Child Left Behind, Homeland Security, have drained us. As the state picks up the tab for mandates and federal budget cuts, it invariably means further cuts to vital services, sending additional mandates to the towns … and the buck stops there … property tax, individuals, families. We cannot afford this trend.

Property tax reform:

The Maine Citizen Leadership Fund and Taxpayers for a Fair Budget have proposed a property tax reform plan that is reasonable, fair, responsible, and desperately needed by many of our Maine citizens.

In the last year we did a great deal of research around tax reform in Maine. We sent out 4,000 surveys to municipal officials and school board members; we conducted more than 400 phone interviews, surveyed the Legislature, held focus groups’ informational meetings around the state and this last week an extensive poll.

Our efforts consistently showed that overall people felt we should add a penny to the sales tax and/or expand the sales base to provide property tax reductions to those who need it.

Homestead Plus! (LD 1394) is our comprehensive property tax reform plan that provides broad-based and targeted property tax reduction:

. No one pays more than 5 percent of their income in property tax with a reimbursement cap of $5,000.

. Those with incomes of $30,000 for individuals and $46,000 for households would pay no more than 4 percent of their income in property tax.

. Exempts the first $7,000 of value on residential property for all resident homeowners.

. Provides $40 million for K-12

education.

. Gives service centers $10 million to offset the high cost of services they provide for their surrounding areas.

This basic plan has received a great deal of support in and out of the State House.

At about $110 million it is less expensive than 1A and the Palesky Tax Cap (total costs of those proposals are nearly a billion dollars), is fully funded with a penny on the sales tax (supported by 70 percent of Maine citizens) and is the only proposal polled that supports increased even after hearing “negatives.” (Homestead Plus rose from 69 to 75 percent even after being informed of cost and funding.)

The Maine Citizen Leadership Fund just launched a Web site where citizens can learn more about the property tax reform debate, see our survey and polling results, and can calculate what they would save in property taxes through Homestead Plus! (www.homesteadplus.org).

With the state of Maine facing yet another difficult fiscal shortfall, we must all do our fair share in contributing to our core values; excellent schools, strong communities, our natural environment; our quality of life. Please let your legislators and the governor know you want to support significant, responsible and effective tax reform now by adopting the Homestead Plus! proposal.

Kathleen McGee is with the Maine Citizen Leadership Fund and Taxpayers for a Fair Budget. She can be contacted at taxpayer@maine.rr.com